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Research Brief

Competitiveness and Welfare Model

An analysis of the relationship between national competitiveness and the welfare state.

Collaborators

Level

HHX

Status

Completed

This project serves as an early analytical contribution to the discussion on how economic robustness and social cohesion can be reconciled.

Summary

This project analyzes the relationship between national competitiveness and the design of the welfare state, focusing on the classic tension between economic efficiency, cost levels, and social protection. The project investigates whether a comprehensive welfare model necessarily weakens a country's competitiveness, or whether specific institutional designs can conversely act as a productivity and stability-promoting element in a globalized economy.

Research Questions

01

How do different welfare models affect countries' competitiveness?

02

Can high taxes and social protection be reconciled with economic growth?

03

What trade-offs exist between equality and efficiency in an open economy?

04

How can institutional quality strengthen competitiveness?

Method & Theory

Model Framework

Comparative Analysis (Economics & Society)

Identification Strategy

Comparison of welfare regimes and their macroeconomic performance.

Data & Frequency

Macroeconomic indicators (Productivity, Unit Labor Costs, Gini Coefficient).

Estimation Approach

Qualitative assessment of institutional effects on the labor market.

[ Transmission Pathway Diagram: Model Architecture ]

Central Points

  • More than Wages: Competitiveness depends not only on labor costs but also on productivity, human capital, and institutional stability.

  • Welfare as Investment: A well-developed welfare state can support labor supply, reduce uncertainty, and promote education.

  • Trade-offs: There is a balancing act between short-term cost competitiveness and long-term productivity development.

  • No Universal Model: Effects depend on country-specific institutions and economic structure.

Bibliography

Subjects

International Economics A
Social Science A

Sources

Sources

Economic Theory, Welfare State Research (Esping-Andersen), Data from OECD/Eurostat.

Software

Word / Excel.

Download Project

Download Thesis (PDF) Full Text • 2.4 MB
Reference
Jørgensen, Anton M. E., Berge, Noah Hjorth, Hansen, Marius Bruun & Børresen, Elias Walther. Competitiveness and Welfare Model. HHX Project.

Perspectives

Labor Market Reforms: Flexicurity as a model for adaptability.

Globalization: How small open economies navigate global competition.

Tax Policy: Financing welfare without stifling growth.

Cite this work

@misc{competitiveness_2026,
  author = {Jørgensen, Anton M. E., Berge, Noah Hjorth, Hansen, Marius Bruun & Børresen, Elias Walther. Competitiveness and Welfare Model. HHX Project.},
  title = {Competitiveness and Welfare Model},
  year = {2026},
  url = {https://antonebsen.dk/projects/competitiveness-and-welfare-model}
}
Jørgensen, Anton M. E., Berge, Noah Hjorth, Hansen, Marius Bruun & Børresen, Elias Walther. Competitiveness and Welfare Model. HHX Project.