Summary: This seminar explores the emergence of a ‘dual welfare state’, where different policy mechanisms are used to address similar problems faced by different social groups, arguing that this is the result of economic and political pressures reinforced by population ageing. It argues that attempts to target government support can have perverse effects that undermine both efficiency and equity, while failing to reduce fiscal pressure. Broadening our approach to include different policy instruments, and to include economy-wide effects not only fiscal impacts on government, can lead to better outcomes.
