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Public Choice

, Volume 148, Issue 3–4, pp 569–594 | Cite as

Globalization, welfare regimes and social protection expenditures in Western and Eastern European countries

Article

Abstract

This paper analyzes the effects of globalization on social protection expenditures in European countries. The particular focus is on (a) the Eastern European countries and (b) on differences in globalization effects between welfare regimes. We find evidence in favor of the compensation hypothesis in Western Europe which is driven by the conservative welfare regime, outweighing the efficiency effect of globalization in the social-democratic welfare regime. In Eastern European countries the efficiency effect is predominant. No globalization effect is found for the liberal and the southern welfare regimes.

Keywords

Globalization Social expenditures Welfare regimes 

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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  • Markus Leibrecht
    • 1
  • Michael Klien
    • 2
  • Oezlem Onaran
    • 3
  1. 1.Department of Economics and Research Institute International Tax CoordinationVienna University of Economics and BusinessViennaAustria
  2. 2.Department of EconomicsVienna University of Economics and BusinessViennaAustria
  3. 3.Department of Economics and StatisticsMiddlesex UniversityLondonUK

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