Welfare states and digitalization

Abstract

New technologies have influenced society’s development for many hundreds of years. However, this was often at times with only more limited developed welfare states, and, thus a need for financing public-sector spending through taxes and duties was less strong than it is today. The question is how the possible strong transformation of labor markets with a risk of fewer people having stable jobs, if any, and income will influence welfare states and their development. The chapter will investigate the issue by first a short depiction of the overall possible development on the labor market, using existing studies, and then connect this to possible variation in different countries belonging to different welfare regimes. The chapter will discuss and show differences in impact of changes on the labor market and discuss both the possible impact and disparity among welfare states in their ability to finance the welfare states in the future. A conclusion being that some welfare states are more prepared than others, but also that the education and labor-market policy will have an impact as this can influence employability.