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Empirica

, Volume 23, Issue 3, pp 207–226 | Cite as

The modern welfare state: Problems and suggested reforms

  • Dennis J. Snower
Article

Abstract

This article examines some of the major market failures and government failures at work in the modern welfare state and investigates the political reasons for ignoring these failures in formulating welfare state policy. Next, the article examines some recent economic developments that endanger the welfare state: the expansion of international trade, skill-biased technological change, and the restructuring of firms. Finally, it suggests some policy approaches that may help make the welfare state more efficient and equitable.

Key words

Welfare state pensions distribution of income social insurance unemployment benefit systems organizational restructuring technological change international trade 

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Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  • Dennis J. Snower
    • 1
  1. 1.Department of Economics, Birkbeck CollegeUniversity of London and CEPRUK

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