Read more in
This article appeared in the International section of the print edition under the headline "Repairing the safety net"
The welfare state needs updating
The welfare state is the theme in this article by The Economist. The magazine is refering to research by IFN faculry: "Spending on “social protection” (pensions, benefits and the like) in the OECD club of countries has increased from 5% in the 1960s to 15% in 1980 to 21% in 2016. In a paper published in 2011, two economists, Andreas Bergh and Magnus Henrekson, estimated that a ten-percentage-point increase in the size of the state in rich countries is associated with a fall in the annual rate of GDP growth of 0.5 to one percentage point."