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Welfare capitalism is capitalism that includes social welfare policies^[1]^{[better source needed]} and/or the practice of businesses providing welfare services to their employees. Welfare capitalism in this second sense, or industrial paternalism, was centered on industries that employed skilled labor and peaked in the mid-20th century.

Today, welfare capitalism is most often associated with the models of capitalism found in Central Mainland and Northern Europe, such as the Nordic model and social market economy (also known as Rhine capitalism and social capitalism). In some cases welfare capitalism exists within a mixed economy, but welfare states can and do exist independently of policies common to mixed economies such as state interventionism and extensive regulation.^[2]

^ "Welfare capitalism – Definition". Merriam-webster.com. Merriam-Webster Dictionary. Retrieved 2014-04-20.
^ "The surprising ingredients of Swedish success – free markets and social cohesion" (PDF). International Economic Association. June 25, 2013. Retrieved January 15, 2014.