The recent economic crisis was a test case for many advanced countries to determine the capacity of their socio-economic model to cope with the challenges of globalisation and financial crash. From this perspective, the aim of this article is to explore whether the expansion of the welfare state should be seen as a barrier to economic growth and competitiveness, as ‘neoliberal’ economists often argue, or whether increasing public social provision might contribute to enhancing real income. After a comparative discussion of the evolution of different welfare models in developed countries, we advance our argument that public social spending is not a drain on competitiveness or an obstacle to economic efficiency. On the contrary, we explore the possibility that increasing welfare expenditure can stimulate economic growth along with lowering inequality, while the so-called ‘efficiency thesis’ (according to which globalisation needs to be accompanied by the retrenchment of welfare states in order to promote external competitiveness) produces worse economic performance and higher inequality. As a test of this hypothesis, we analyse empirical data on 34 Organisation for Economic Co-operation and Development countries from 1990 to 2013. We use econometric analysis to indicate that the so-called ‘compensation thesis’ (a process whereby globalisation is regulated through expansion of welfare states) may contribute to real income dynamics, while greater income inequality may inhibit per capita gross domestic product growth.

Although workplace death is known to have profound social and psychological effects on families, the economic consequences have not been explored. This pioneering study investigated families’ financial situations following fatal workplace injuries. An online survey explored the impact of post-death financial change on 142 participants from Australia, Canada, the USA, and the UK using a scale from the economic strain model. Half of the participants experienced financial loss, and the proportion struggling financially increased from 24% to 62% after the death. Workers’ compensation claims were made by 74% of participants, but they reported problems with delays, levels of entitlement, and satisfaction with the scheme. Other key sources of assistance were family and friends or support groups and services. Participants who were older, next-of-kin, and partner/spouses were significantly more likely to experience financial loss as were those whose deceased relative worked 51+ hours per week, possibly because the deceased was self-employed or worked significant overtime not covered by compensation settlements. Those experiencing financial loss sought short- and long-term financial help, accessed social security, re-entered the workforce, acquired mental disorders, and experienced declines in physical health, at significantly higher rates than participants without financial loss, and their children developed mental health problems significantly more often. Findings highlight the detrimental, and potentially intergenerational, effects of financial loss on the health and wellbeing of families bereaved by traumatic workplace deaths. Policy issues flowing from the results are discussed, including how this informs wider debates on refashioning regulatory protection.