Social Protection and the Formation of Skills: A Reinterpretation of the Welfare State

Download PDF145 KB


Social protection does not always mean "politics against markets." In this chapter we argue, as did Polanyi (1994), that social protection rescues the market from itself by preventing market failures. More specifically, we contend that social protection aids the market by helping economic actors overcome market failures in skill formation. We show, in this chapter, that different types of social protection are complementary to different skill equilibria.


Last updated on 07/26/2016