ABSTRACT
This chapter examines the need and utility of typologies for the comparative analysis of welfare capitalism. It aims to explain the intellectual background of the regime typology, discusses the criteria for good typologies, evaluates the operationalization of the three world's typology, and discusses how to distinguish between relevant and not-so-relevant criticisms of typologies. The basic political economy model for how democracy leads to income redistribution was presented early on by Meltzer and Richard. The social democratic regime as found in the Scandinavian countries is tax-financed, but is much more lenient in its eligibility rules and generous in the provision of benefits and services; it works with compulsory social insurance with earnings-related benefits. It aims to offer a high level of social protection through benefits and services as a matter of rights to all citizens. The conservative regime stresses that social rights are earned on the basis of one's economic contribution to society or one's social function in the family.
