The Receipt of Transfer Payments by Immigrants in Sweden

Using the native-born as a benchmark, this article examines the reliance of immigrants on Sweden's social safety net. Both in the raw data, and after conditioning on a number of explanatory variables, we find that there are differences between immigrants and natives regarding participation in the Swedish income security system. We also find that there are differences in this respect between immigrants from different regions as well as between more recent and earlier cohorts of immigrants. As regards unemployment insurance benefits and cash labour market assistance, no clear pattern can be discerned in the results. In the case of early retirement pension and social assistance, however, the picture looks different. Immigrants arriving at an early date from typical labour immigration regions are over-represented in early retirement. Immigrants, especially non-European immigrants with a recent date of arrival, are over-represented among recipients of social assistance. The overall conclusion is that the immigrants' total rate of participation in the income security system is determined by their rate of unemployment and their state of health. On the other hand, the distribution of their participation among the different components of the income security system is highly dependent on their length of residence in Sweden and where they come from.     

Social security reform ideas in Japan

Japan has a complex social security system. This article discusses the demographic and economic situation in Japan as background for understanding the setting in which the social security system functions. Japan has a three-pillar system for retirement income. The first pillar is the social security pension plan; the second pillar is the voluntary occupational pension plan; and the third pillar is personal savings, including the personal pension plan. The most important part of the retirement income system is the social security pension plan, which paid benefits accounting for 64% of the total income of elderly households in 1998. The five Employees' Pension Plans are established on a compulsory social insurance basis. Most large Japanese employers have a mandatory retirement age. Over 90% of all employees, including public sector ones, must retire from their career jobs at age 60.     

Social Security Reform Ideas in Japan

Abstract

Japan has a complex social security system. This article discusses the demographic and economic situation in Japan as background for understanding the setting in which the social security system functions. Japan has a three-pillar system for retirement income. The first pillar is the social security pension plan; the second pillar is the voluntary occupational pension plan; and the third pillar is personal savings, including the personal pension plan. The most important part of the retirement income system is the social security pension plan, which paid benefits accounting for 64% of the total income of elderly households in 1998. The five Employees' Pension Plans are established on a compulsory social insurance basis. Most large Japanese employers have a mandatory retirement age. Over 90% of all employees, including public sector ones, must retire from their career jobs at age 60.     

Proxies in the New Political Economy: Caveat Emptor

Some common professional criteria for evaluating econometric tests that use proxies for political, social, and institutional variables as regressors may lull scholars into a false sense of security about specious results. The highly publicized correlations between income and economic freedom based on the economic freedom indexes supplied by the Fraser Institute, Heritage Foundation, and Freedom House are used as illustrations. Because these correlations bear strong resemblances to one another, most economists would consider them mutually supportive. Yet this is not so, implying that mutual resemblance and consistency are not criteria for judging econometric results. (JEL B49 , C19 )     

Ranking intersecting Lorenz curves

This paper is concerned with the problem of ranking Lorenz curves in situations where the Lorenz curves intersect and no unambiguous ranking can be attained without introducing weaker ranking criteria than first-degree Lorenz dominance. To deal with such situations two alternative sequences of nested dominance criteria between Lorenz curves are introduced. At the limit the systems of dominance criteria appear to depend solely on the income share of either the worst-off or the best-off income recipient. This result suggests two alternative strategies for increasing the number of Lorenz curves that can be strictly ordered; one that places more emphasis on changes that occur in the lower part of the income distribution and the other that places more emphasis on changes that occur in the upper part of the income distribution. Both strategies turn out to depart from the Gini coefficient; one requires higher degree of downside and the other higher degree of upside inequality aversion than what is exhibited by the Gini coefficient. Furthermore, it is demonstrated that the sequences of dominance criteria characterize two separate systems of nested subfamilies of inequality measures and thus provide a method for identifying the least restrictive social preferences required to reach an unambiguous ranking of a given set of Lorenz curves. Moreover, it is demonstrated that the introduction of successively more general transfer principles than the Pigou–Dalton principle of transfers forms a helpful basis for judging the normative significance of higher degrees of Lorenz dominance. The dominance results for Lorenz curves do also apply to generalized Lorenz curves and thus provide convenient characterizations of the corresponding social welfare orderings.     

Private lives and public programs: an Australian longitudinal study of the elderly

Major late life events, reported in the Dubbo longitudinal study of older Australians, are used to examine the interaction of private lives with public programs. First, the data indicate strong supportive effects of publicly funded income, health, and aged care programs in reducing family burdens from major life changes. In particular, financial crises were rarely mentioned, directly or indirectly, as major threats. Next, the central role of informal social support in these events is demonstrated, first, as in previous studies, family support was responsive to risky events and to aging itself. Also, in new findings, one-third of surviving elderly respondents coped with the burdens of family crises as a substantial proportion of the "major" life changes that occurred over 13 years of the study. Within the security and support provided by the Australian welfare system, and with strong social networks, families with older persons in the Dubbo study manage multiple, major life changes. With rapid population aging, the development of more, and more easily accessible, services for a growing population of older people is a priority. The critical challenge will be to harmoniously grow public financing, private funding, and informal caregiving to deal with the growing burden arising from an aging society.     

Redistributing wealth to families: the advantages of the MYRIADE model

This study aims to shed light on the main characteristics of the French system for redistributing wealth to families through tax revenues and social transfers. For the purposes of this exercise, the authors used the MYRIADE microsimulation model, which covers most of the redistribution system, though it is limited to monetary flows such as family benefits, housing allowances, minimum social welfare payments, income tax, and tax on furnished accommodation. The authors used a particular methodology to highlight the way this redistribution works; rather than calculate the difference between each family's disposable income and their gross primary income, they opted to isolate the variation in disposable income that could be attributed to the youngest member of each family where there is at least one child under the age of 25. The average increase in disposable income that this child contributes to his or her family amounts to in200 per month.     

The impact of basic income on the propensity to work: Theoretical issues and micro-econometric results

In France, there is much debate about “minimum social benefits”, and basic income is still perceived as too daring a proposal, in particular because it is believed to encourage idleness. How can we predict how individuals would use this unconditional income? As regards low wage earners, we look first at the uncertainties surrounding the economic theory as to the behavioural changes that this could induce. This is followed by an econometric study of answers given in 2000 by a panel of poorly qualified young adults who had recently become employed.     

Long-term care policy for the elderly in the Zaporozhye region of Ukraine: a case study of social development following the collapse of Communism

In this paper, we review the status of social policy for the elderly in Ukraine since the fall of Communism and the breakup of the Soviet Union. We specifically address the problem of "rebuilding" an income and services policy for the at-risk elderly after the unraveling of the system that existed prior to the fall of Communism. Also, we address some existing problems faced by the elderly in the health care system. Within this context, we present a case study of the current status of long-term care policy for the elderly in one province of Ukraine, the eastern province of Zaporozhye, encompassing the industrial city of Zaporozhye on the Dnieper River. This case study particularly pays attention to current attempts to promote a social development process of long-term care services for the elderly. It examines recent developments with respect to public sector organizations and voluntary sector organizations that are trying to provide necessary services to the needy elderly. With respect to the voluntary sector, the paper pays particular attention to the American Jewish Joint Distribution Committee (JDC) model of a largely externally funded NGO that provides comprehensive and integrated social supports, while emphasizing local empowerment and the use of volunteers, for the needy Jewish population in the province of Zaporozhye. Based on our findings, we make some proposals regarding the improvement of income and services policy with respect to the elderly in Zaporozhye and Ukraine.     

Private Lives and Public Programs

Abstract

Major late life events, reported in the Dubbo longitudinal study of older Australians, are used to examine the interaction of private lives with public programs. First, the data indicate strong supportive effects of publicly funded income, health, and aged care programs in reducing family burdens from major life changes. In particular, financial crises were rarely mentioned, directly or indirectly, as major threats. Next, the central role of informal social support in these events is demonstrated, first, as in previous studies, family support was responsive to risky events and to aging itself. Also, in new findings, one-third of surviving elderly respondents coped with the burdens of family crises as a substantial proportion of the “major” life changes that occurred over 13 years of the study. Within the security and support provided by the Australian welfare system, and with strong social networks, families with older persons in the Dubbo study manage multiple, major life changes. With rapid population aging, the development of more, and more easily accessible, services for a growing population of older people is a priority. The critical challenge will be to harmoniously grow public financing, private funding, and informal caregiving to deal with the growing burden arising from an aging society.     

The impact of labour income risk on household saving decisions in Turkey

This paper analyses the Household Budget Surveys prepared by the Turkish Statistical Institute to reveal the empirical importance of precautionary saving in Turkey. The most difficult aspect of the empirical analysis is the approximation of labour income risk as a proxy variable for future labour income uncertainty. Individual disposable income is interacted alternately with the probability of being unemployed and with the probability of job loss in the next period to generate the labour income risk variables. The econometric results support the precautionary saving hypothesis and labour income risk emerges as one of the main determinants of household saving decisions. Moreover, households implement alternative strategies to smooth out their income streams such as holding a second job and increasing the number of income earners in the family. However, it is evident that they are still vulnerable against labour income risk, which underlines the need for an effective and efficient social security system.     

The Changing Financial Circumstances of Households with Children

SUMMARY. The last fifteen yeas have seen rapid changes in the financial circumstances of households with children. They are increasingly found among those on the lowest incomes and are over-represented among households dependent on income support for their survival. At the same time, changes in the social security system have left claimant families with greater financial responsibility and reduced access to additional sources of financial support from the state. The article reviews these changes in the economic welfare of households with children, paying particular attention to the circumstances of low-income families. It looks in turn at trends in household income, at changes in the social security system and at the patterns of debt and unmet needs reported by parents caring for children on low incomes.     

Criteria for Assessing the Case for Overseas Aid: A Note

This note derives minimum appraisal criteria for foreign aid consistent with those used by donor governments for domestic spending, and discusses implications for the level, allocation and financing of aid programmes. One finding is that aid is only welfare‐enhancing when the recipient country's social time preference rate is higher than the donor's, as will normally be the case. This implies that endowment financing is inferior to funding aid from current income, though borrowing against future aid as proposed by the International Financing Facility can be worthwhile provided returns exceed the borrowing cost.     

Distributive effects of benefits and taxes

In light of the growing federal deficit, pressure is mounting to cut federal spending. If the budget for social security programs is cut, who will suffer? This article presents the results of a study that investigated the degree to which taxes and public income transfers change the level of income, the degree of inequality in income distribution, and the poverty rates of various demographic groups. Major findings are that public income transfers are more powerful than taxes in equalizing the income distribution and that poverty reduction through non-means-tested transfer programs is more effective among elderly people, white people, and people in married-couple families, whereas poverty reduction through means-tested transfer programs is more effective among nonelderly people, black people, and people in female-headed families. Implications for social work practice are discussed.     

Reducing poverty and inequality through tax-benefit reform and the minimum wage: the UK as a case-study

Atkinson’s book Inequality: What Can Be Done? (Harvard University Press, 2015) sets out a range of concrete proposals aimed at reducing income inequality, which cover a very broad span but include major changes to the income tax and social transfers system and the minimum wage. These are framed with specific reference to the UK but have much broader relevance in demonstrating how substantial the impact on inequality of such measures could be. This paper assesses the first-round effects of these tax, transfer and minimum wage reforms on income inequality and poverty based on a microsimulation approach using EUROMOD. The reforms involve a significantly more progressive income tax structure, a major increase in the minimum wage to the level which is estimated to represent the ‘Living Wage’, and alternative routes to reforming social transfers – either to strengthen the social insurance element or to restructure the entire system as a Participation Income (a variant of Basic/Citizen’s Income). The results show how the first-round effects of either set of tax and transfer proposals would be to substantially reduce the extent of income inequality and relative income poverty and the paper draws out how the two approaches differ in their effects. The additional impact of raising the minimum wage to the Living Wage is modest, reflecting in particular the position of beneficiaries in the household income distribution and the offsetting effects on household income of the withdrawal of means-tested cash transfers.     

Financial literacy and anxiety about life in old age: evidence from the USA

This study examines whether financial literacy can help to reduce anxiety about life in old age. We hypothesized that financially literate people are more able to earn income and accumulate assets, leading them to have a less anxious life in old age. On the other hand, less financially literate people rely more on social security to secure themselves in the old age as they are not able to accumulate sufficient assets. By using US survey data, we provide evidence that assets significantly reduce anxiety about life in old age only for people who are more financially literate. For less financially literate people, social security plays an important role in reducing anxiety about life in old age. Besides these, having a child and doing regular exercise also reduced anxiety for all respondents but marital status reduced anxiety in respondents over 40 years of age. The results of our study are robust to measurement of financial literacy and endogeneity problems.     

Policymaking for diversity among the aged in India

Population aging is occurring rapidly in India, and the implications of an aging society are likely to be experienced in an adverse manner unless immediate steps are taken to provide social security for all of India's older population. Current provision by central and state governments is grossly inadequate. This article analyzes the major Indian states across three income groups and describes the differences and inequalities across states and rural/urban areas with regard to income, living arrangements, pension benefits, etc. The efforts by central and state governments to meet the needs of older persons are outlined and critiqued. Suggestions are made for the establishment of more equitable income security, and health and social services schemes.     

Retrofitting Drucker: Knowledge work under cognitive capitalism

This article uses Peter Drucker's work vector-like, to carry the thesis of cognitive capitalism into the management field. Drucker's prophetic insights into the knowledge society are juxtaposed with recent, Italian autonomist Marxist-inspired analyses of capitalism's cognitive phase. If the capacity to create knowledge – or what autonomists call the ‘general intellect’ – is becoming the key productive force, arguably there is a need for a full-blown social form of knowledge management. Our reading of Drucker thus retrieves the one worthwhile thing from the rubble of normative knowledge management. It is the idea of society-level knowledge management premised on a universal and unconditional guaranteed basic income (GBI; or social wage). Basic income represents not just a social investment in knowledge, which Drucker himself called for, but also compensation for biolabour's augmented social productivity. With Drucker as the steppingstone, we conclude, the autonomist tradition merits greater attention from critical management and organisational scholars interested in factoring class and gender back into the knowledge management equation.     

The erosion of citizenship

The Marshallian paradigm of social citizenship has been eroded because the social and economic conditions that supported postwar British welfare consensus have been transformed by economic and technological change. This article argues that effective entitlement was based on participation in work, war and reproduction, resulting in three types of social identity: worker-citizens, warrior-citizens and parent-citizens. The casualization of labour and the technological development of war have eroded work and war as routes to active citizenship. Social participation through reproduction remains important, despite massive changes to marriage and family as institutions. In fact the growth of new reproductive technologies have reinforced the normative dominance of marriage as a social relation. These rights of reproduction are described as 'reproductive citizenship'. The article also considers the role of voluntary associations in Third-Way strategies as sources of social cohesion in societies where social capital is in decline, and argues that the voluntary sector is increasingly driven by an economic logic of accumulation. With the erosion of national citizenship, Marshall's three forms of rights (legal, political and social) have been augmented by rights that are global, namely environmental, aboriginal and cultural rights. These are driven by global concerns about the relationship between environment, community and body such that the quest for social security has been replaced by concerns for ontological security.