Conditional Solidarity : A Comparative Analysis of Government Egalitarianism and Benefit Conditionalization in Boom and Bust

Abstract

Surveys show that welfare benefits are regarded as more legitimate if the beneficiaries are perceived as victims of systemic circumstances; that their legitimacy is sensitive to economic context; and that egalitarians are more supportive of benefits. Applying these insights to macro-comparative research, this paper shows that “conditional solidarity” – not partisanship – explains the puzzling countercyclical policy pattern of “conditionalization in good times” that characterizes changes in access to unemployment insurance in the OECD. The argument is that the effect of a government’s egalitarian views depends on the business cycle because the legitimacy of benefits is inversely related to macroeconomic performance.