After taking account of taxes and transfers, the European Community Household Panel (ECHP) measured the Gini coefficients of the majority of European countries, and discovered that Denmark, Sweden, Finland, Norway, and the Netherlands are the countries that have the lowest poverty rate. Another goal of the welfare states of Europe is to provide protection against labor market risks. This implies that the welfare systems will attempt to create programs that protect workers from losing their jobs. For example, since welfare states want to reduce the number of people that are unemployed, they make it harder for employers to fire employees by increasing firing costs and severance payments for employees. In addition to this, in order to provide protection against labor market risks, welfare states promote and fund unemployment benefits for their citizens. This leads to positive effects for the countries because there is less unemployment because more people are able to keep their jobs, and even those who do not have jobs are able to live sufficient
After taking account of taxes and transfers, the European Community Household Panel (ECHP) measured the Gini coefficients of the majority of European countries, and discovered that Denmark, Sweden, Finland, Norway, and the Netherlands are the countries that have the lowest poverty rate. Another goal of the welfare states of Europe is to provide protection against labor market risks. This implies that the welfare systems will attempt to create programs that protect workers from losing their jobs. For example, since welfare states want to reduce the number of people that are unemployed, they make it harder for employers to fire employees by increasing firing costs and severance payments for employees. In addition to this, in order to provide protection against labor market risks, welfare states promote and fund unemployment benefits for their citizens. This leads to positive effects for the countries because there is less unemployment because more people are able to keep their jobs, and even those who do not have jobs are able to live sufficient