The Working Class and Welfare: F rancis G . C astles on the Political Development of the Welfare State in A ustralia and N ew Z ealand Thirty Years On

In his celebrated work of comparative policy, Francis Castles argued that a radical wage‐earning model of welfare had evolved in A ustralia and N ew Z ealand over the course of the 20th century. The C astles' thesis is shown to have two parts: first, the ‘fourth world of welfare’ argument that rests upon protection of workers; and, second, an emphasis on the path‐dependent nature of social policy. It is perfectly possible to accept the second premise of the argument without the first, and indeed many do so. It is also possible to accept the importance of wage level protection concerns in A ustralasian social policy without accepting the complete fourth world thesis. This article explores the path of social democracy in A ustralia and N ew Z ealand and the continuing importance of labour market regulation, as well as considering the extent to which that emphasis still makes Australasian social policy distinctive in the modern age. The argument focuses on the data and policies relating to labour market protection and wages, as well the systems of welfare and social protection, and the comparative information on poverty and inequality .