More Extensive the Welfare System, More People Want to Work

The bigger the worse? A comparative study of the welfare state and employment commitment

Authors:

van der Wel et al

Abstract:

This article investigates how welfare generosity and active labour market policies relate to employment commitment. As social policy is increasingly directed towards stimulating employment in broader sections of society, this article particularly studies employment commitment among groups with traditionally weaker bonds to the labour market. This is also theoretically interesting because the employment commitment in these groups may be more affected by the welfare context than is the employment commitment of the core work force. A welfare scepticism view predicts that disincentive effects and norm erosion will lead to lower employment commitment in more generous and activating welfare states, while a welfare resources perspective holds the opposite view. Using multilevel data for individuals in 18 European countries, the article finds increasing employment commitment as social spending gets more generous and activating. This was also evident for weaker groups in the labour market, although the effect was less pronounced in some groups.