The Austrian and Swiss Welfare State System in International Comparison

Abstract

Today, we understand that the comparative study of welfare state systems, and in particular social security systems, is not developed a great deal in global perspective. But it is also true that the existing body of knowledge on comparative study of welfare state systems is out of date, even in the heartlands of Europe. This study evaluates, first and foremost, the system structure of two leading welfare state systems in Europe: Switzerland and Austria. The authors of this paper come to the conclusion that the Swiss welfare state while being stable with regard to its institutional structures continuously increased social spending to become a leading welfare state in Europe. Austria, conversely, made through a different development, it reshaped its institutions, particularly in pensions and general universal welfare - hence, emerging as a new leader in terms of universalism in social security in the Continental regime of welfare state systems.

Keywords: Austria, Switzerland, Welfare State, Social Security, Institutional Structures, Welfare

JEL Classification: H55, I00, I18