The Welfare State with Private Alternatives : The Transformation of Popular Support for Social Insurance

Abstract

Private alternatives to the public provision of welfare state services and benefits have expanded in almost all OECD countries over the past decades. In this paper, we study how this change affects patterns of public support for the welfare state and, in the long term, the political sustainability of solidaristic social policies. Our core argument is that the availability of private alternatives undermines support for public provision of social insurance policies, in particular among the middle and upper-income classes, whose political support is crucial for the political viability of the universalist welfare state regime. We test our theoretical claim empirically with survey data from the ISSP Role of Government module for 20 OECD countries.