Getting payments at Centrelink

This paper presents findings from a small qualitative study of tertiary students who were receiving income support payments from Centrelink. They are some of the millions of Australians receiving income support payments from Centrelink each year. The aim of the study was to explore and illuminate the experience of receiving income support payments. The findings indicate that people who may appear to have no problems accessing Centrelink may nevertheless undertake considerable efforts to receive their payments. These efforts involve practical tasks, intra and interpersonal processes and use of material resources. As many social work clients receive some sort of income support payment, these issues are relevant across social work settings.     

The Cost of Instability: The Effects of Family,Work, and Welfare Change on Low‐Income Women’s Health Insurance Status

The number of uninsured Americans has risen substantially over the last decade. Despite the availability of Medicaid, low‐income women are at particularly elevated risk of having no or inadequate health insurance. How does continuity of work, family, and welfare affect low‐income women’s health insurance status? A multinomial logistic regression analysis of 1,662 low‐income women from the Welfare, Children, and Families: A Three‐City Study provides evidence of the consequences of life changes on access to health insurance from 1999–2005. The results show that compared to those with stable welfare, work, and family attachments, new full‐time employment actually increases low‐income women’s risk of being uninsured as does being underemployed, on welfare, or single for extended periods of time. These findings illustrate how health‐care reform must adequately address the complexity of low‐income women’s lives—including the ways labor market, state, and family factors interact to create barriers to health insurance—in order to improve access to care under the current U.S. health insurance model.     

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.     

Long-Term Care

This study examines the redistributive effects of public pensions on old-age income inequality, testing whether public pensions function as the “great equalizer.” Unlike the well-known alleviating effect of public pensions on old-age poverty, the effects of public pensions on old-age income inequality more generally have been less examined, particularly outside Western countries. Using repeated cross-sectional data of elderly Koreans between 1998 and 2010, we applied Gini coefficient decomposition to measure the impact of various income sources on old-age inequality, particularly focusing on public pensions. Our findings show that, contrary to expectations, public pension benefits have inequality-intensifying effects on old-age income in Korea, even countervailing the alleviating effects of public assistance. This rather surprising result is due to the specific institutional context of the Korean public pension system and suggests that the “structuring” of welfare policies could be as important as their expansion for the elderly, particularly for developing welfare states.     

Home Ownership, Social Insurance, and the Welfare State

Home ownership has potentially significant consequences for welfare state policy. High owner-occupancy rates may function as private insurance where social spending is low (a substitution effect). Alternatively, state income redistribution policies could raise the number of home owners (an income effect). Cross-national time-series data show that social spending is negatively related to home ownership, and mediates the positive relationship between income inequality and owner-occupancy rates. This suggests that owner-occupancy acts as a form of social insurance over the life course. Future welfare state researchers should consider the issue of home ownership in analyses of inequality and the social safety net.

Future of Long-Term Care Financing for the Elderly in Korea

ABSTRACT

With rapid aging, change in family structure, and the increase in the labor participation of women, the demand for long-term care has been increasing in Korea. Inappropriate utilization of medical care by the elderly in health care institutions, such as social admissions, also puts a financial burden on the health insurance system. The widening gap between the need for long-term care and the capacity of welfare programs to fulfill that need, along with a rather new national pension scheme and the limited economic capacity of the elderly, calls for a new public financing mechanism to provide protection for a broader range of old people from the costs of long-term care. Many important decisions are yet to be made, although Korea is likely to introduce social insurance for long-term care rather than tax-based financing, following the tradition of social health insurance. Whether it should cover only the elderly long-term care or all types of long-term care including disability of all age groups will have a critical impact on social solidarity and the financial sustainability of the new long-term care insurance. Generosity of benefits or the level of out-of-pocket payment, the role of cash benefits, and the relation with health insurance scheme all should be taken into account in the design of a new financing scheme. Lack of care personnel and facilities is also a barrier to the implementation of public long-term care financing in Korea, and the implementation strategy needs to be carved out carefully.     

Future of long-term care financing for the elderly in Korea

With rapid aging, change in family structure, and the increase in the labor participation of women, the demand for long-term care has been increasing in Korea. Inappropriate utilization of medical care by the elderly in health care institutions, such as social admissions, also puts a financial burden on the health insurance system. The widening gap between the need for long-term care and the capacity of welfare programs to fulfill that need, along with a rather new national pension scheme and the limited economic capacity of the elderly, calls for a new public financing mechanism to provide protection for a broader range of old people from the costs of long-term care. Many important decisions are yet to be made, although Korea is likely to introduce social insurance for long-term care rather than tax-based financing, following the tradition of social health insurance. Whether it should cover only the elderly longterm care or all types of long-term care including disability of all age groups will have a critical impact on social solidarity and the financial sustainability of the new long-term care insurance. Generosity of benefits or the level of out-of-pocket payment, the role of cash benefits, and the relation with health insurance scheme all should be taken into account in the design of a new financing scheme. Lack of care personnel and facilities is also a barrier to the implementation of public long-term care financing in Korea, and the implementation strategy needs to be carved out carefully.     

Identifying the Effects of Income on Children's Development Using Experimental Data

Prior research suggests that poverty can be detrimental to low‐income children's development. Is this relation capturing the effects of poverty or the effects of other characteristics of low‐income families associated with poverty? Can low‐income children benefit from increases in income? In this paper, an instrumental variables estimation strategy is used with data on nearly 900 children from a random assignment evaluation of a pilot welfare reform program in Minnesota in order to answer these questions and to identify the causal effects of income on children's development. There are some suggestions that increased income improves the development of low‐income children, at least with regard to their school engagement and positive social behavior. Results are discussed with regard to their implication for analysis, as well as research and policy.     

Social insurance and children: The relationship between Social Security,economic well-being,and family context among child recipients

The relationship between social insurance, which provides families protection against certain risks, and child economic security is understudied. Using the 2004 Survey of Income and Program Participation (SIPP) matched to Social Security Administration benefit records, this article investigates the economic welfare effects of the child component of the US Social Security program. We examine how the poverty rate of child beneficiaries would change, absent Social Security income, and how heavily the family incomes of these children rely on it, by family characteristics. Our findings reveal that Social Security plays an important role in mitigating economic insecurity among children deprived of a wage-earning parent through disability, death, or retirement. Family structure, earnings, and employment status are identified as key factors moderating the effect of Social Security on child recipients’ financial circumstance.     

Making the Transition from Welfare to Work: Employment Experiences of CalWORKs Participants in the San Francisco Bay Area

ABSTRACT

This study describes welfare-to-work participants in the San Francisco Bay Area, support services, experiences with the CalWORKs program, and predictors of employment status in the wake of welfare reform. Findings indicate that many are working and more Stayers and Recidivists than Leavers are using food stamps and Medi-Cal. Multivariate analysis reveals that race and financial supports were the significant factors contributing to employability, defined as the ability to secure employment despite the need to supplement earned income with welfare payments. To help people stay off of welfare, case management services are needed to help participants maintain employment and increase job skills. In addition to expanding our understanding of human behavior within the social environment of poverty, implications for practice and policy are identified.     

Running on empty: Monitoring the lives and circumstances of formerly homeless families with children

Homelessness is a manifestation of acute poverty accompanied by long-term unemployment, deficient human capital, problems with substance abuse, inadequate welfare benefits, and other vulnerabilities. Homeless people have problems that require sustained intervention strategies that will permit them the opportunity to enter the labor market, maintain permanent housing, remain healthy and functional, and take care of their families. To this end, more and more transitional housing programs have been opened—programs that provide shelter stays of longer duration than emergency shelters as well as an array of support services designed to help people move along the path toward economic independence. Do people do better after living in transitional housing? To address this question, this research monitored homeless families who “graduated” from a large transitional housing program in Baltimore. Following two cohorts of families for more than one year at several points in time, this research finds that families exhibited a series of positive changes in the lives of both adults as well as children. Families did not become economically self-sufficient as indicated by complete independence from income maintenance programs. This study suggests that the availability of income maintenance programs, particularly rental housing subsidies may be a critical factor in permitting homeless people to stabilize their life situations.     

Social Security and SSI as safety nets for the elderly poor

Partial privatization of Social Security is being considered as an integral part of the future Social Security program for American retirees. Because privatization creates uncertainty about the amount of retirement income that future retirees may expect to receive, the issue of a safety net is critical. This article presents the findings from an empirical study that investigated the degree to which the current Social Security and Supplemental Security Income (SSI) programs provide a safety net, separately and in combination, to the elderly poor. The major findings were that the Social Security program not only increases the income statuses of both posttransfer and pretransfer poor elderly people considerably, but that the program also significantly equalizes the distribution of income among them. In addition, the SSI program supplements the Social Security program in establishing an even greater safety net, especially for posttransfer poor elderly people. On the other hand, Social Security benefits make the income disparity among races greater between both posttransfer and pretransfer poor elderly people. Implications for policy are discussed.     

Toward an equitable, universal caregiver policy: the potential of financial supports for family caregivers

This article describes the fragmented array of financial supports for family caregivers currently provided by the federal government, the states, and private employers-provisions that range from direct payments to tax allowances, dependent-care tax credits, and unpaid leave. It highlights the uneven pattern of supports available to family caregivers of the elderly, the younger physically disabled, and children and adults with mental retardation and developmental disabilities that results from the welfare bias still shaping many current provisions. The article then critiques current policy and examines the potential for more explicit family caregiver financial support policy through pending initiatives of the Clinton Administration.     

Sources of health insurance and characteristics of the uninsured. Analysis of the March 1992 Current Population Survey

Eighty-three percent of nonelderly Americans and 99 percent of elderly Americans (aged 65 and over) were covered by either public or private health insurance in 1991, according to EBRI tabulations of the March 1992 Current Population Survey (CPS). The March 1992 CPS is the most recent data available on the number and characteristics of uninsured Americans. In 1991, 16.6 percent of the nonelderly population--or 36.3 million people--were not covered by private health insurance and did not receive publicly financed health assistance. This number compares with 35.7 million in 1990 (16.6 percent), 34.4 million in 1989 (16.1 percent), and 33.6 million in 1988 (15.9 percent). The most important determinant of health insurance is employment. Nearly two-thirds (64 percent) of the nonelderly have employment-based coverage. Workers were much more likely to be covered by group health plans than nonworkers (71 percent versus 40 percent). Even though workers and members of their families were more likely to be covered by health insurance than nonworkers, 85 percent of the uninsured lived in families headed by workers in 1991, primarily because most people lived in families headed by workers. More than 60 percent of uninsured were in families headed by full-year workers with no unemployment. Nearly all persons who were covered by an employment based-plan received at least some contribution to that plan from their employer. The estimated average annual contribution among those receiving a contribution to employee or family plans was $2,129. Although many individuals in poor families are covered by public health plans, that coverage is far from universal. In 1991, only 52 percent of the nonelderly with income below the poverty line were covered by a public plan--49 percent by Medicaid. The number of children who were uninsured in 1991 was 9.5 million, or 14.7 percent of all children, compared with 9.8 million or 15.3 percent of all children in 1990. Twenty-three percent of children were covered by public health insurance, with 21 percent being covered by Medicaid. In 11 states and the District of Columbia, more than 20 percent of the population was uninsured in 1991. These states and their uninsured rates were the District of Columbia (30.3 percent), Texas (25.3 percent), New Mexico (24.5 percent), Louisiana (23.8 percent), Florida (23.5 percent), Mississippi (22.1 percent), Oklahoma (22.1 percent), Nevada (21.8 percent), California (21.7 percent),Arizona (21.1 percent), Alabama (20.6 percent), and Idaho (20.6 percent).     

Long-Term Care Insurance in Japan

Abstract

Among all the industrialized countries, Japan has the fastest rate of population aging and the highest life expectancy at birth. It is projected that the proportion of elderly people will reach 35.7% in 2050. In this demographic environment, Japan launched a social insurance program for long-term care for the elderly in 2000. What were the forces that led Japan to establish a long-term care program for elderly people? What are the provisions for financing, benefits, and service delivery? What aspects of policymaking in developing such a program are unique to Japan? This article presents answers to these questions.     

The economic safety net for low-income families with children

Following the passage of welfare reform in the mid-1990s and the end of entitlement benefits under Temporary Assistance for Needy Families, the U.S. economic safety net has become increasingly individualized. In fact, it is no longer clear whether low-income families tend to rely on particular types of public benefits, or whether there are characteristics that differentiate benefit “packaging”.This study examines the combinations of various income sources comprising economic safety nets for low-income families participating in the Fragile Families and Child Wellbeing Study. The income sources we explore include earnings, child support, Temporary Assistance for Needy Families (TANF), Supplemental Nutritional Assistance Program (SNAP) benefits, childcare subsidies, unemployment insurance (UI) benefits, Supplemental Security Income (SSI), the Earned Income Tax Credit (EITC), housing subsidies, and Medicaid. We use cluster analysis to determine the most common patterns of income and benefit sources, and identify four distinct clusters of income and benefits that are associated with different family demographic characteristics. The findings from this investigation may be useful to social service programs as they attempt to identify relevant safety net resources for economically struggling families, and to policymakers attempting to reconcile requirements associated with programs and benefits that are regularly combined by beneficiaries.     

The Value of Adoption

ABSTRACT

Recent work shows that the governmental cost of adoption is about half the cost of long-term foster care for children whose birth parents' rights have been terminated. Because adoption is also associated with greater accumulation of human and social capital, the total savings to government in areas such as special education and criminal justice is of the same magnitude as the child welfare savings. The private benefit to adopted children in terms of additional income earned over their working lives is similarly large. In all, a dollar spent on the adoption of a child from foster care yields about three dollars in benefits.     

The value of administrative data for longitudinal social research: a case study investigating income support receipt and relationship separation in Australia

ABSTRACT

In recent years, the Australian government has encouraged open access to administrative data, providing new opportunities for examining life course pathways and evaluating social policies. This paper demonstrates the importance of establishing partnerships in the use of administrative data for social research. In collaboration with the data custodian, we used administrative welfare data to investigate a policy-relevant topic: the association between income support receipt and relationship separation. Our results provided greater statistical power for detecting associations for minority groups than is possible with panel survey data, highlighting the benefits of administrative data for understanding the outcomes of population groups that are not well represented in surveys. The collaboration between university researchers and data custodians was critical to enable appropriate sharing of data for research and for accurate interpretation of the data and outcomes for relevance to policy.     

Allowances: Incidence in the US and Relationship to Financial Capability in Young Adulthood

This study describes the use of allowance payments by parents to children in the United States (US) and documents the association between receiving an allowance as a child and financial capability as a young adult. Based on the Panel Study of Income Dynamics, the majority of children in the US ages 6 to 15 receive an allowance in childhood. Allowances are a commonly used strategy by parents across many demographic and socioeconomic groups, with no strong relationship between parental income or education and parents offering an allowance. Young adults who received an allowance as children reported modestly higher levels of financial responsibility, suggesting that allowances for children and teenagers may be a useful complement to other financial development strategies for young people.