Course objectives (competences):
The aim of the course Economics of the welfare state is to enhance the knowledge of students on the microeconomic principles and to expand that knowledge in the context of analysis of the welfare state. The completion of this course should enable students to:
- Define and explain social welfare and the welfare state;
- Analyse and discuss the main principles and problems in measuring welfare, inequality and poverty;
- Use equity and efficiency arguments for government intervention in the provision of various welfare state programs;
- Evaluate and compare the basic options for welfare financing;
- Understand the effects of the welfare state measures on individual behavior and well-being and on the society;
- Analyse the characteristics of modern welfare states and compare the different welfare provisions among modern day countries: health care, social assistance, pensions, education etc.;
- Understand the contemporary problems and challenges faced by welfare states (especially the problems of sustainability);
- Apply their knowledge to evaluate real-life welfare state programs and to address the dilemmas for their design.
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Course content:
This course gives an economic perspective on the need, design and effects from government welfare programs and an overview of modern welfare states and their future challenges. The main components of the course curriculum are:
- Definition of the welfare state, its goal and function;
- Government intervention in the provision of various welfare state programs (efficiency vs. equity);
- Problems of defining and measuring welfare, poverty and inequality;
- Financing the welfare state;
- Welfare state policies (social insurance, inequality, unemployment, pensions, health care etc.);
- Social entrepreneurship;
- Size and scope of modern welfare states;
- Welfare state regimes;
- Welfare policies and measures in the Republic of Macedonia;
- Economic and social consequences of the welfare state;
- New trends and future challenges for the welfare state that arise from globalisation and demographic trends: the question of sustainability.
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