A cross-national test of propositions from the neo-pluralist perspective on Social Security expenditures

Much of the existing literature on cross-national differences in retirement wage policy has focused on the inception of programs and the factors leading to their introduction. The explanations may be less adequate in accounting for post-war changes in social security programs. To interpret the evolution of programs in the post-war period, we stress the importance of divisions among workers themselves. We argue here that such divisions may occur along three fault lines: (1) ethnic, racial, and linguistic differentiation (2) the split between heavily urbanized and other segments of the working population and (3) fractionalization brought about by domination of a single industry. Using a longitudinal design to measure changes in social security expenditures in 34 nations between 1965 and 1983, we test hypotheses asserting that fragmentation among workers is inversely correlated with expanded investment in benefits for workers. We find general support for these hypotheses.