The objective of this Element is to provide an analysis of social protection from an economic perspective. It relies on tools and methods widely used in public and insurance economics and comprises four main section besides the introduction. The first section is devoted to the design of social protection programs and their political sustainability. The second section assesses the efficiency and performance of social protection programs, and of the welfare state as a whole. In the third section, the relative merits of social and private insurance are analyzed as well as the design of optimum insurance contract with emphasis on health and pensions. The last section focuses on the implications of asymmetric information that may lead governments to adopt policies that would otherwise be rejected in a perfect information setting.

This book offers an account of the performance of the welfare state in the European Union, and explores its future prospects in an ever evolving setting. The objectives of the welfare state are twofold: to relieve poverty and to provide a sense of security for everyone. It can be shown that over the last four decades the welfare state has been quite successful in achieving these objectives, more visibly in the Nordic countries than in the Southern or the Anglo-Saxon ones. But today the welfare state is at a crossroad. It is facing a variety of challenges that include demographic aging, the changing role of families, increased opportunism, economic integration and declining job security. All these challenges call for a drastic reform of the welfare state, one that requires more control of abuses and more accountability. The authors that it is crucial that all the components of the welfare state be made as efficient as possible, and that if a choice has to be made between alleviating poverty and protecting individuals against lifetime risks, priority should be given to the first objective. This book devotes a chapter to each of the main social protection programs: health care, unemployment insurance, pensions and child policies. In addition, special consideration is given throughout to the necessary interdependence among the State, the market and the family.

Our societies are witnessing a steady increase in longevity. This demographic evolution is accompanied by some convergence across countries, but at the same time substantial longevity inequalities persist within nations across income classes. This Element aims to survey some crucial implications of changing longevity on the design of optimal public policy. For that purpose, it first focuses on some difficulties raised by risky and varying lifetime for the representation of individual and social preferences. Then, it explore some central implications of changing longevity for optimal policy making, regarding prevention against premature death, pension policies, education, health care and long-term care. The author distinguishes between the case when longevity is partially the responsibility of individuals and the case when longevity is plainly exogenous.

Although in Europe there continues to be a large degree of consensus that it is the responsibility of government to ensure that nobody who is poor, sick, disabled, unemployed, or old is left deprived, there are mounting calls to roll back spending on the welfare state. It is argued that it fails to achieve its main objectives, that it is responsible for a decline in economic performance, and that it was conceived in a very different period and is therefore not adapted to modern realities. This second edition of The Welfare State in Europe: Economic and Social Perspectives provides an informed analysis of the key criticisms of the welfare state and examines the prospects of this system in an increasingly integrated world. It answers important questions regarding the current social situation of European countries, the performance of the welfare states, and the reforms that should be undertaken. It calls for fundamental changes in social policies in order to address the rising inequality that hampers social cohesion in Europe. Now focused on Europe in its entirety and including a new chapter on long term care, this new edition of an integral text on the welfare state places increased focus on social divisions and the populist vote to provide a balanced and up-to-date analysis of the performance of current systems.