Welfare regimes and economic performance

Which model is best in delivering prosperity for its citizens? If we group countries with similar institutional settings are grouped together, can we see differences in median household income GDP per capita, or inequality? In a new working paper, we find remarkably wide variation across OECD countries in recent decades in economic performance. This variation is also seen within the liberal and coordinated market economy models distinguished in the varieties of capitalism literature, as well as within the welfare regimes commonly employed in welfare state analysis, with little difference between them in average growth rates.