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ABSTRACT. This study aims at analyzing the existing welfare state models in Europe and investigating welfare regimes in the countries of Central and Eastern Europe. The hierarchical cluster analysis, employed in this study, revealed that five welfare state models can be distinguished in this region. The analysis also revealed that Central and Eastern European countries are too diverse to form a single cluster, and thus two models of the welfare state - the Eastern Europe welfare model and the Central Europe welfare model - could be distinguished. Meanwhile, while investigating the situation of Central and Eastern European countries in the more general European context, it was observed that Central European welfare model is closer to the old European countries, while the Eastern European welfare model is very different from all other models.
JEL Classification: B55, D60 I38
Keywords', welfare state, Eastern Europe welfare model, Central Europe welfare model.
Introduction
Investigation of the welfare state as a phenomenon began in the middle of the 20th century, however, quality of life remains to be a relevant topic today (Bartkowiak-Bakun, 2017). Reduction of social marginalization and income inequality, and ensuring prosperity for each member of society are the main objectives of the welfare state (Khouri et al., 2017; Draskovic, 2017; Beg et al., 2017; Calinescu et al., 2018). Therefore, welfare state is often associated primarily with Scandinavian countries with their very well developed systems of social benefits.
However, shared values and interaction between the market, the family and the state are equally important. Based on the chosen social policies aimed at reducing inequalities in society, a certain model of welfare state can be assigned to the state. Despite the significant interest of scientists, there is no single and clear way to investigate the existing model of welfare state in each country. And particularly, very little attention has been paid to the analysis of welfare state in Central and Eastern European countries.
The global financial crisis which began back in 2007 has been a challenge for welfare states and has led a number of governments to the decision to review their social policies. Changes in the volumes of social benefits and/or their provision rules as well as demographic situation have affected further development of the welfare state (Meyer...