Memorandum,
Oslo University, Department of Economics

Abstract: In this paper, we develop the implications of the view of welfare policies as publicly financed insurance policies that pay benefits relative to contributions in a redistributive manner. With the majority of voters having both redistributive and insurance motives for supporting welfare spending, the impact of inequality on voters' support for welfare depends on how benefits are targeted.

Keywords: SOCIAL WELFARE; INCOME REDISTRIBUTION

JEL-codes: D63; I30; H23

31 pages, 1998

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