• Korean Journal of Social Welfare Studies
• /
• no.39
• /
• pp.167-187
• /
• 2008

This study explores the trends of social security expenditures after financial crisis in welfare states. For the purpose, this study analyzes changes in social expenditures during 1980~2003 in 22 OECD countries. The results show that average total social security expenditure(as a percentage of GDP) among the 22 countries increased from 18.0% in 1980 to 22.3% in 2003. Compared to sharp increases during the great expansion period of the welfare state before 1980s, the increase in social expenditures after 1980s is substantially weakened. The slowdown in the increases of social expenditures is remarkable in the social democratic welfare states where social expenditures have already reached a high level. On the other hand, social expenditures are considerably increased in the lagged welfare states such as South European countries and Japan. As a result, the cross-national difference in social expenditures has continuously decreased. These findings suggest that financial crisis is a key factor of welfare-state reorganization. Countries where social expenditures are in high level need more reforms under the pressure of financial deficits. Since 1980s, they have tried various reforms especially in pensions and unemployment benefits. Facing new and increasing demands for social security as well as financial limitations, the welfare state needs major reforms in the social security system to increase effectiveness/efficiency of existing programs and to iron out priorities among programs.