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Social model


A social welfare model is a system of social welfare provision and its accompanying value system. It usually involves social policies that affect the welfare of a country's citizens within the framework of a market or mixed economy.

How the state taxes the people, be it a flat tax, regressive tax or a progressive tax system. Most common guiding rule of taxation is to levy taxes by the ability to pay.

How the state implements benefits for the unemployed, pensions, maternity and paternity leave and disabilities.

Services such as health care can be almost entirely state funded, private insurance-based, or somewhere in-between. For example, the United Kingdom has an almost entirely publicly funded health service, the National Health Service (NHS), and Canada offers public health care offered at a provincial level. Conversely, in the United States, individuals have to rely on health insurance policies in the event of hospitalization, and a minimal amount of state support for the poorer people exists. Another element can be public transport, as some countries have nationalized rapid transit systems, while others have privatized them (in the UK for example, public transport has been privatised in Great Britain but not in Northern Ireland).

Economies with a more laissez-faire approach to employment will do nothing to provide job security. Other countries will rely on some degree of regulation to protect workers from arbitrary firings. A high degree of regulation such as expensive severance fees is often cited reason for making employers reluctant to hire and causing unemployment.


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