Elderly bias,new social risks and social spending: change and timing in eight programmes across four worlds of welfare,1980-2003

Abstract

Over the past decades, all affluent welfare states have been coping with two major new trends: population ageing and new social risks resulting from de-industrialization. How have these demand-side trends, and their timing, affected welfare spending? We investigate up to 21 OECD democracies with respect to eight separate programmes and two composite indicators of aggregate welfare spending bias towards the elderly and new social risks. We find that welfare regime logics still matter crucially in accounting for variation between countries, as does the timing of the large-scale arrival of new social risks. Both Southern European welfare states and countries that entered the post-industrial society comparatively late spend less on programmes such as education and family allowances, and more on survivor pensions. However within countries, contemporaneous levels of new social risks conspicuously fail to affect spending on programmes that deal with these risks. These findings defy simple neo-pluralist expectations of social policy responsiveness: on their own, even dramatic demand-side trends influence welfare spending relatively little in advanced democracies.