Hostname: page-component-848d4c4894-pftt2 Total loading time: 0 Render date: 2024-06-10T21:00:43.040Z Has data issue: false hasContentIssue false

Path dependency and convergence of three worlds of welfare policy during the Great Recession: UK, Germany and Sweden

Published online by Cambridge University Press:  09 March 2020

Johannes Kiess*
Affiliation:
Department of Social Sciences, University of Siegen, Siegen, Germany
Ludvig Norman
Affiliation:
Department of Government, Uppsala University, Uppsala, Sweden
Luke Temple
Affiliation:
Department of Geography, University of Sheffield, Sheffield, UK
Katrin Uba
Affiliation:
Department of Government, Uppsala University, Uppsala, Sweden
*
*Corresponding author. Email: kiess@soziologie.uni-siegen.de

Abstract

This paper investigates policy responses to the Great Recession in Sweden, the United Kingdom and Germany. Faced with the global financial crisis in 2007, responses in the respective countries differed considerably and followed the “old” paths of their institutional legacies. We focus on labour market and social welfare policies and demonstrate how these differing responses were shaped by path-dependent ideational paradigms. Since these paradigms are first and foremost carried by policy communities, the analysis does not, in contrast to prior studies, only rely on policy documents but outlines the process as seen from the perspective of key public officials and experts in the respective fields. The paper shows how the crisis was perceived and which kinds of arguments were used for explaining the liberal (UK), conservative (Germany) and social–democratic (Sweden) responses to crisis.

Type
Research Article
Copyright
Copyright © 2017 Informa UK Limited, trading as Taylor & Francis Group

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Armingeon, K. (2012). The politics of fiscal responses to the crisis of 2008–2009. Governance, 25(4), 543565.CrossRefGoogle Scholar
Armingeon, K., Guthmann, K., & Weisstanner, D. (2016). Choosing the path of austerity: How parties and policy coalitions influence welfare state retrenchment in periods of fiscal consolidation. West European Politics, 39(4), 628647.CrossRefGoogle Scholar
Arts, W., & Gelissen, J. (2002). Three worlds of welfare capitalism or more? A state-of-the-art report. Journal of European Social Policy, 12(2), 137158.CrossRefGoogle Scholar
Béland, D., Blomqvist, P., Andersen, J. G., Palme, J., & Waddan, A. (2014). The universal decline of Universality? Social policy change in Canada, Denmark, Sweden and the UK. Social Policy & Administration, 48(7), 739756.CrossRefGoogle Scholar
Béland, D., & Cox, R. H. (2010). Ideas and politics in social science research. Oxford: Oxford University Press.CrossRefGoogle Scholar
Béland, D., & Cox, R. H. (2016). Ideas as coalition magnets: Coalition building, policy entrepreneurs, and power relations. Journal of European Public Policy, 23(3), 428445.CrossRefGoogle Scholar
Berry, C. (2016). Austerity politics and UK economic policy. Basingstoke: Palgrave.CrossRefGoogle Scholar
Bressers, H. T. A., & O'Toole, L. (1998). The selection of policy instruments: A network-based perspective. Journal of Public Policy, 18(3), 213239.CrossRefGoogle Scholar
Chung, H., & Thewissen, S. (2011). Falling back on old habits? A comparison of the social and unemployment crisis reactive policy strategies in Germany, the UK and Sweden. Social Policy & Administration, 45(4), 354370.CrossRefGoogle Scholar
Crouch, C. (2011). The strange non-death of neoliberalism. Cambridge: Polity Press.Google Scholar
Dwyer, P. (2004). Creeping conditionality in the UK: From welfare rights to conditional entitlements? Canadian Journal of Sociology, 29(2), 265287.Google Scholar
Elliot, L. (2010, March 26). Darling: we will cut deep than Thatcher: Thinktank warns of ‘two parliaments of pain; with spending slashed by 25%. The Guardian.Google Scholar
Elsässer, L., Rademacher, I., & Schäfer, A. (2015). Cracks in the foundations: Retrenchment in advanced welfare states. Economic Sociology: The European Electronic Newsletter, 16(3), 416.Google Scholar
Emmenegger, P., Kvist, J., Marx, P., & Petersen, K. (2015). Three worlds of welfare capitalism: The making of a classic. Journal of European Social Policy, 25(1), 313.CrossRefGoogle Scholar
English, P., Grasso, M. T., Buraczynska, B., Karampampas, S., & Temple, L. (2016). Convergence on crisis? Comparing labour and conservative party framing of the economic crisis in Britain, 2008–14. Politics and Policy, 44(3), 577603.CrossRefGoogle Scholar
Esping-Andersen, G. (1999). Social foundations of postindustrial economies. Oxford: Oxford University Press.CrossRefGoogle Scholar
Farnsworth, K., & Irving, Z. (2012). Varieties of crisis, varieties of austerity: Social policy in challenging times. Journal of Poverty and Social Justice, 20(2), 133–47.CrossRefGoogle Scholar
Farnsworth, K., & Irving, Z. (Eds.). (2015). Social policy in times of austerity. Chicago: The University of Chicago Press.CrossRefGoogle Scholar
Fehmel, T. (2012). Welfare state convergence in Europe: On the structural approximation of European social security systems. European Journal of Transnational Studies, 4(2), 5480.Google Scholar
Freeman, R. B., Topel, R. H., & Swedenborg, B. (Eds.). (2008). The welfare state in transition: Reforming the Swedish model. London: University of Chicago Press.Google Scholar
Freud, D. (2007). Reducing dependency, increasing opportunity: options for the future of welfare to work (DWP Report Corporate Document Services) Retrieved from http://webarchive.nationalarchives.gov.uk/20130128102031/http://dwp.gov.uk/docs/welfarereview.pdfGoogle Scholar
Garthwaite, K. (2011). “The language of shirkers and scroungers?” Talking about illness, disability and coalition welfare reform. Disability & Society, 26(3), 369372.CrossRefGoogle Scholar
Government of Sweden. (2007a). Ordinance (2007:414) on the work and development programmeGoogle Scholar
Government of Sweden. (2007b). Ordinance (2007:813) on the youth job programmeGoogle Scholar
Grimshaw, D., & Rubery, J. (2012). The end of the UK's liberal collectivist social model? The implications of the coalition government's policy during the austerity crisis. Cambridge Journal of Economics, 36(1), 105126.CrossRefGoogle Scholar
Hall, P., & Soskice, D. (Eds.). (2001). Varieties of capitalism: The institutional foundations of comparative advantage. Oxford: Oxford University Press.CrossRefGoogle Scholar
Hay, C. (2013). The failure of Anglo-Liberal capitalism. Basingstoke: Palgrave Macmillan.CrossRefGoogle Scholar
Hermann, C. (2014). Structural adjustment and neoliberal convergence in labour markets and welfare: The impact of the crisis and austerity measures on European economic and social models. Competition & Change, 18(2), 111130.CrossRefGoogle Scholar
Herzog-Stein, A., Horn, G. A., & Stein, U. (2013). Macroeconomic implications of the German short-time work policy during the great recession. Global Policy, 4(July), 3040.CrossRefGoogle Scholar
Hodson, D., & Mabbett, D. (2009). UK economic policy and the global financial crisis: Paradigm lost? JCMS: Journal of Common Market Studies, 47(5), 10411061.Google Scholar
Holzinger, K., & Knill, C. (2005). Causes and conditions of cross-National Policy Convergence. Journal of European Public Policy, 12(5), 775796.CrossRefGoogle Scholar
van Hooren, F. V., Kaasch, A., & Starke, P. (2014). The shock routine: Economic crisis and the nature of social policy responses. Journal of European Public Policy, 21(4), 605623.CrossRefGoogle Scholar
Immergut, E. M., & Anderson, K. M. (2008). Historical institutionalism and west European politics. West European Politics, 31(1–2), 345369.CrossRefGoogle Scholar
Jónsson, G., & Stefánsson, K. (Eds.). (2013). Retrenchment or renewal? Welfare states in times of economic crisis. NordWel studies in historical welfare state research 6. Helsinki: Nordic Centre of Excellence NordWel.Google Scholar
Kammer, A., Niehues, J., & Peichl, A. (2012). Welfare regimes and welfare state outcomes in Europe. Journal of European Social Policy, 22(5), 455471.CrossRefGoogle Scholar
van Kersbergen, K., Vis, B., & Hemerijck, A. (2014). The great recession and welfare state reform: Is retrenchment really the only game left in town? Social Policy & Administration, 48(7), 883904.CrossRefGoogle Scholar
Lallement, M. (2011). Europe and the economic crisis: Forms of labour market adjustment and varieties of capitalism. Work, Employment & Society, 25(4), 627641.CrossRefGoogle Scholar
Mayntz, R. (2012). Crisis and control: Institutional change in financial market regulation. Frankfurt: Campus Verlag.Google Scholar
National Audit Office. (2014). The Report of the Comptroller and Auditor General to the House of Commons HM Treasury Annual Report and Accounts 2013‒2014. Retrieved December 11, 2015, from https://www.nao.org.uk/wp-content/uploads/2014/07/Her-Majesty-Treasury-2013-14-report-on-accounts.pdfGoogle Scholar
Oesch, D. (2006). Coming to grips with a changing class structure: An analysis of employment stratification in Britain, Germany, Sweden and Switzerland. International Sociology, 21(2), 263–88.CrossRefGoogle Scholar
Oliver, M. J., & Pemberton, H. (2004). Learning and change in 20th-century British economic policy. Governance, 17(3), 415441.CrossRefGoogle Scholar
Peters, B. G., Pierre, J., & Randman-Liiv, T. (2011). Global financial crisis, public administration and governance: Do new problems require new solutions? Public Organization Review, 11(1), 1327.CrossRefGoogle Scholar
Pierson, P. (2000). Three worlds of welfare state research. Comparative Political Studies, 33(6–7), 791821.CrossRefGoogle Scholar
Pontusson, J., & Raess, D. (2012). How (and why) is this time different? The politics of economic crisis in Western Europe and the United States. Annual Review of Political Science, 15, 1333.CrossRefGoogle Scholar
Preunkert, J. (2016). The European integration process and the social consequences of the crisis. In Heidenreich, M. (Ed.), Inequalities in Europe (pp. 220235). Cheltenham: Edward Elgar.Google Scholar
Romano, S. (2015). Idle paupers, scroungers and shirkers: Past and new social stereotypes of the undeserving welfare claimant. In Foster, L., Brunton, A., Deeming, C., & Haux, T. (Eds.), In defence of welfare II (pp. 6568). Bristol: Policy Press.Google Scholar
Sabatier, P. A. (1988). An advocacy coalition framework of policy change and the role of policy-oriented learning therein. Policy Sciences, 21(2–3), 129–68.CrossRefGoogle Scholar
Schmidt, V. A. (2003). The boundaries of “bounded generalizations”: discourse as the missing factor in actor-centered institutionalism. In Renate, M. & Wolfgang, S. (Eds.), Die Reformierbarkeit der Demokratie. Innovationen und Blockaden (pp. 318350). Frankfurt: Campus.Google Scholar
Schmidt, V. A., & Thatcher, M. (2013). Resilient liberalism in Europe's political economy. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Shahidi, F. V. (2015). Welfare capitalism in crisis: A qualitative comparative analysis of labour market policy responses to the great recession. Journal of Social Policy, 44, 659686.CrossRefGoogle Scholar
Starke, P., Kaasch, A., & van Hooren, F. (2013). The welfare state as crisis manager: Explaining the diversity of policy responses to economic crisis. Basingstoke: Palgrave Macmillan.CrossRefGoogle Scholar
Starke, P., Kaasch, A., & van Hooren, F. (2014). Political parties and social policy responses to global economic crises: Constrained partisanship in mature welfare states. Journal of Social Policy, 43(2), 225246.CrossRefGoogle Scholar
Streeck, W., & Schäfer, A. (Eds.). (2013). Politics in the Age of austerity. Cambridge: Polity Press.Google Scholar
Streeck, W., & Thelen, K. A. (2005). Introduction: Institutional change in advanced political economies. In Streeck, W. & Thelen, K. A. (Eds.), Beyond continuity (pp. 139). Oxford: Oxford University Press.Google Scholar
Swedish Social Insurance Agency. (2014). Förändringar inom socialförsäkringen. [Changes in social insurance system]. Retrieved August 15, 2014, from http://www.forsakringskassan.se/wps/wcm/connect/18e69eee-6acc-4a82-8040-8e74825a3540/forandringar_inom_socialforsakringen.pdf?MOD=AJPERESGoogle Scholar
Taylor-Gooby, P. (2013). New paradigms in public policy. Oxford: Oxford University Press.CrossRefGoogle Scholar
Temple, L., Grasso, M. T., Buraczynska, B., Karampampas, S., & English, P. (2016). Neoliberal narrative in times of economic crisis: A political claims analysis of the U.K. Press, 2007–14. Politics and Policy, 44(3), 553576.CrossRefGoogle Scholar
Thelen, K. A. (2014). Varieties of liberalization and the new politics of social solidarity. Cambridge Studies in Comparative Politics. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Tridico, P. (2012). Financial crisis and global imbalances: Its labour market origins and the aftermath. Cambridge Journal of Economics, 36(1), 1742.CrossRefGoogle Scholar
Urban, H.-J. (2012). Crisis corporatism and trade union revitalisation in Europe. In Lehndorff, Steffen (Ed.), A triumph of failed ideas European models of capitalism in the crisis (pp. 219–42). Brussels: ETUI.Google Scholar
Vaughan-Whitehead, D. (2011). Work inequalities in the crisis: Evidence from Europe. Cheltenham: Edward Elgar Publishing.CrossRefGoogle Scholar
Vis, B., van Kersbergen, K., & Hylands, T. (2011). To what extent did the financial crisis intensify the pressure to reform the welfare state? Social Policy & Administration, 45(4), 338353.CrossRefGoogle Scholar
Whitworth, A., & Carter, E. (2014). Welfare-to-Work reform, power and inequality: From governance to governmentalities. Journal of Contemporary European Studies, 22(2), 104117.CrossRefGoogle Scholar
Wiggan, J. (2012). Telling stories of 21st century welfare: The UK coalition government and the neo-liberal discourse of worklessness and dependency. Critical Social Policy, 32(3), 383405.CrossRefGoogle Scholar