The Financialization of European Social Care: A Descriptive Network Analysis

Original

The Financialization of European Social Care: A Descriptive Network Analysis

Simon Demuynck, Wouter Van Dooren

Abstract

ABSTRACT Social services in Europe underwent significant changes in recent decades. Using our unique dataset covering the ownership networks of over 100,000 child care, disability care, and care for older adults facilities across 27 EU countries and the UK, we conduct a macro‐level network analysis to answer (1) who the main financial industry actors are in European social care markets; (2) where in these markets financialization is taking place; and (3) what position the financial industry occupies in the ownership networks of social care. The analysis reveals how a significant part of European social service facilities across differing types of European welfare states is indirectly owned by financial corporations. We demonstrate that network approaches can provide a more effective method for computing variables related to service ownership, as they capture indirect ownership links not visible in traditional datasets. The highly networked and financialized nature of social provision raises questions about systemic risks in social care sectors. Moreover, financialization could also erode the government's ability to achieve public goals in social care.