The Impact of Welfare State to Labour Market. European Submodels Differences
In this study, we show the effects which the measures to implement welfare state have to labour market. All knows that the employment represents the most important component of the welfare state, as it supports the fulfillment of the objectives for the economic and social policies. The argument of t...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2010-08-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/492.pdf
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| Summary: | In this study, we show the effects which the measures to
implement welfare state have to labour market. All knows that the
employment represents the most important component of the welfare
state, as it supports the fulfillment of the objectives for the economic and
social policies. The argument of the previous statement is very simple:
the expenses for social protection are made on the basis of the returns
from taxes and social contributions paid by the employed persons. The
higher their number, the bigger the tax basis, and the budget for the
social policy will become sustainable, even though measures for
decreasing taxation would be applied to companies and to the employed
population. The entire virtuous mechanism may disintegrate if a low rate
of employment persists. In case of a high unemployment on a long-term,
of an early exit from the labour market, of a lower integration on the
labour market of women, of young persons, of aged persons and of poorly
qualified persons, the social expenses will increase and the budget
revenues will decrease, the result being the increase in the state’s debt.
The crisis will prove whether the increase in employment recorded
since 2000 was conjunctural (determined by the favorable macroeconomical
evolutions) or structural (induced by the reforms
implemented on the labour markets and in the social protection systems). |
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| ISSN: | 1841-8678 1844-0029 |