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Welfare Capitalism Theory

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There are several theories underlying this dissertation such as the activation theory, path dependency, variety of capitalism, and the theory of welfare chauvinism. In this regard, institutions cover three major facets of institutionalization processes and the administrative machineries experience path dependencies (Thoenig, 2011). They are organizations that handle public affairs (Brunsson and Olsen, 1997: 20), serve as political devices and action-oriented systems (Thoenig, 2011) depending on the dissimilar models of national capitalism. Furthermore, institutions intervene in public affairs (Thoenig, 2011) through regulative activation policies to steer young third country immigrant transition to work.

A suitable theory of this study …show more content…

The national models of capitalism differ in their institutional set ups across the main subsystems to regulate it agencies (Ebbinghaus and Manow, 2001). According to the Varieties of Capitalism, there are coordinated (such as “Christian-democratic” Continental welfare states or the Nordic “social-democratic” universalist welfare regimes) and uncoordinated market economies (such as liberal welfare states) among nation states as well as a mixed case of divergence subsystems, regions or economic sector from the dominant model (Huber and Stephens 1999; Ebbinghaus 1999; 2001). Firms are emphasis as actor-centred and fundamental units to regulate the economy (Hall and Soskice, 1999:4). This is because the relations between economic actors are crucial for their strategic capacity. Esping-Andersen also distinguished three different ideal-typical welfare regimes (the residual model, the industrial-achievement or merit-oriented model, and the institutional welfare state model) focused along the dimensions of de-commodification, special stratification, and public-private mix (Ebbinghaus and Manow, 2001) to regulate its public or social policies. For instance, they show the liberal conceptions of welfare state models that should not intervene in “free” market, the paternalist Conservative state traditions and Christian-democratic conceptions of “subsidiarity”, and the social-democratic conceptions of a Universalist and redistributive welfare (Ebbinghaus and Manow, 2001). These concepts are devices for comparison with empirical account of cross-national variation in different policy fields (Kohl 1993: 75). Furthermore, the labour market is part of the welfare state-economy nexus (Kolberg and Esping-Anderson 1991; Esping-Anderson, 1993) because they shape employment regimes and the possible transition pathways to

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