Policy Article

Globalisation and the Future of the Welfare State


  • Chen
  • Y.-F.
  • Görg
  • H.
  • Görlich
  • D.
  • Molana
  • H.
  • Montagna
  • C.
Publication Date

The authors show that a strong welfare state does not necessarily weaken countries' international competitiveness in a globalised world and, hence, there is no necessary "race to the bottom" in welfare states. If there are strong vertical relationships leading to aggregate economies of scale welfare expenditure can even increase competitiveness.

Kiel Institute Expert


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