The Capacity of Welfare Regimes to Absorb Macro-Economic Shocks : National Differences in the Development of Unemployment, Poverty and the Distribution

The financial crisis, which struck the EU countries in 2008, was followed by the severest economic recession since the end of the Second World War. This book illustrates the development of unemployment, poverty and the distribution of income within the social systems of Sweden, Austria and Spain in the aftermath of the financial crisis 2008. Whether one country has been more effective in cushioning the negative impacts of the economic downturn and whether variations in the development of these socio-political indicators are attributable to the different welfare state models, are central to this piece of research. This analysis supports the findings of previous research. Firstly, it could be observed that some societal groups have been more vulnerable to the negative impacts of the financial crisis 2008 than others. Secondly, less developed welfare states have to react in more active ways to crises compared to countries which have the schemes already implemented before an economic downturn shows its consequences.