Towards a European Social Model?: Trends in social insurance among EU countries 1980-2000

Abstract: The market-enhancing regulations of the European Union (EU) place political and economic constraints on the Member States. This has been expected to induce convergence of social policies, generally in a downward direction. At the same time the notion of a European Social Model has been launched as a strategy to make marketization socially acceptable, pointing to a development in a different direction. This paper examines key aspects of the development of the main social insurance programs during the period 1980-2000 in 14 EU Member States. Are there significant signs of convergence in the replacement rates of social insurance programs and do broader development trends of the social insurance systems indicate converging institutional models? The results indicate divergence rather than convergence of social insurance replacement rates. In terms of institutional models there is no evidence of a common European Social Model in the area of social insurance over the past decades.