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The Achievement of The Employment-oriented Welfare State

Ko, Hyejin 1 Cho, Hyojin 2

1서울대학교 사회복지연구소
2서울대학교

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ABSTRACT

This study explores the effectiveness of employment-oriented welfare state by analyzing the mediating role of employment rate on the relationship between public welfare effort and fiscal soundness. Notably, this study considers the quality of employment into the analysis: part-time work, involuntary part-time work and low-wage work in analysis. The data sample consists of 18 OECD countries which initiated employment-oriented welfare strategy after the crisis of welfare state. An analysis was conduct based on Baron & Kenny(1986)’s method and panel two-stage model to handle the endogeneity problem. The results show that while the high level of public welfare effort negatively affects the fiscal soundness if it contributes to boosting employment rates, it has positive effects on the fiscal soundness. However, when the incidence of involuntary part-time employment and low-wage employment is high, the mediating impact of employment rate on the fiscal soundness disappears. This study argues that unless the quality of employment is taken into consideration, the positive effect of employment-oriented welfare state strategy to improve the fiscal soundness is not fully guaranteed.

Citation status

* References for papers published after 2022 are currently being built.