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Cambridge Journal of Economics 28:133-152 (2004)
Cambridge Journal of Economics, Vol. 28, No. 1, © Cambridge Political Economy Society 2004; all rights reserved

Commentary

Is globalisation undermining the welfare state?

Vicente Navarro*, John Schmitt and Javier Astudillo

Address for correspondence: Professor V. Navarro, 624 N Broadway, Room 448, Baltimore, MD 21205, USA; email: vnavarro{at}jhsph.edu

JEL classifications: F0, G0, H0, I0

Abstract

This paper analyses the evolution of the welfare states in the majority of OECD countries during the pre-globalisation (1946–80) and globalisation (1980–2000) periods. Our purpose is to find out whether globalisation has produced a convergence towards a smaller welfare state, funded increasingly by non-mobile factors such as labour, property and consumption rather than by mobile factors such as capital. The data presented here challenge the claims about such a convergence, showing that social public expenditures and public employment have continued to expand during the globalisation period in most OECD countries. We also show that the welfare states remain rooted in the political traditions that have governed them.

Key Words: Economic globalisation • Welfare states • Labour markets • Political economy

Manuscript received February 18, 2002; final version received April 16, 2002.


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