In recent decades, the rapid expansion of lower-quality, atypical employment has created a growing group of people excluded not only from generous labor market protections, but from welfare state coverage as well. This situation would seem to call for increased spending on the social safety net, yet governments throughout continental Europe, especially since the financial crisis, have instead been turning to austerity. As a result, they have had to choose between either extending coverage and retrenching the good benefits given to "insiders" or maintaining the protection, coverage, and...