Social Policies as Drivers of Productivity
This study examines the influence of socio-political measures in the area of distribution policy, family and care policy, education and labour market policy and its effect on growth and employment. International examples demonstrate that a high level of social contributions is not linked to a lower economic performance in an economy. Social policy can increase the productivity of an economy via various transmission mechanisms. It is not only social security payments which have an effect. The tax and subsidies system, the extent to which the state provides for or fosters social infrastructure as well as other statutory rules regarding labour and family policies also have an effect. Merely focusing on social security policy falls short of the truth.