Social Welfare Policy in the Context of Economic Restructuring: Lessons from the West Virginia Workers' Compensation Programme

Costs of social programmes resulting from obligations incurred during periods of economic expansion persist into periods of decline and restructuring. Underfunding of these programmes during periods of economic expansion may result in the transfer of costs to new industrial enterprises. This may lead, in turn, to increased political attacks on these programmes. This paper describes the experience of one such programme, the West Virginia Workers' Compensation Fund, which provides monetary and health benefits to injured workers. This West Virginia programme is currently under economic and political threat due to the combination of declining industry and past underfunding. The paper concludes that more attention must be given in the future by those concerned with general economic development policy to adequacy of funding of social programmes. Future research regarding the interrelationship betwen funding for social programmes and economic development policy is warranted.