Long-term Care Policies in Italy, Austria and France: Variations in Cash-for-Care Schemes

Cash benefit provisions have been at the core of many recent reforms in the long-term care sector in Europe. The respective schemes, however, vary widely in terms of the definition of entitlements, the level of benefits, and the ways in which benefits can be used by recipients. This article investigates cash-for-care schemes in three European social insurance countries. It asks whether the diversity of these schemes indicates different paths or just differences in the pace with which the respective policies address the risk of dependency. A characterization of the three schemes and a discussion of the implications for care work arrangements lead to the conclusion that the context and timing of long-term care reform processes are in fact quite variegated. All three countries have histories of cash schemes and of applying the cash approach to support – and to some extent relieve – traditionally strong family obligations. Differences predominate in terms of linking cash to employment, although some convergence is apparent in the effects on qualifications, working conditions and wages in care work.     

Has the Nordic Welfare Model Been Transformed?

The Nordic welfare model is undergoing a fundamental transformation. Using Denmark we show how a universal welfare state model is gradually being transformed into an emergent multi‐tiered welfare state. Whereas the Danish pension system's having become multi‐tiered in the 1990s, with private schemes – collective and individual – supplementing public schemes is well documented, scant attention has focused on more recent developments in other areas of the welfare state. This article shows how the multi‐tiered welfare state spread in the 2000s to policies for families, the unemployed and the sick. Although Denmark still offers universal coverage in core welfare state areas, the increased use of occupational and fiscal welfare as well as changes in public schemes has gradually transformed the nation into a multi‐tiered welfare state that is more dualistic and individualistic, with participation in the labour market becoming still more important for entitlement to benefits. These profound changes have taken place in such a way that although core characteristics are still in place, new structures and understandings of the welfare state are also developing. Thus classical typologies need revision, so that they include more focus on this combination of universality and institutional attachment to the labour market. Moreover, measures of what welfare comprises should include not only public but also private elements.     

Categorical Benefits in Welfare States: Findings from Great Britain and Israel

This paper examines the role of categorical benefits; i.e. non-means-tested and non-contributory cash benefits, in Great Britain and Israel. After introducing a more rigorous definition of the term and differentiating between various types of categorical benefits, it looks at the role and recent development of these benefits in the two countries. It finds that they play a growing and significant role in the social security systems of Great Britain and Israel. An examination of the decision-making process surrounding the adoption of these benefit programmes indicates why this is so. On the basis of these findings, initial conclusions relating to changes in the nature of social security are presented.     

Free trade and cheap theatre: sources of politics for the nineteenth-century London poor

The very poor and unskilled workers of mid-nineteenth-century London – often termed the ‘casual poor’ due to their irregularity of employment – have been generally portrayed as entirely apolitical, and to have exhibited purely mob responses to the issues of the day. This article suggests that we have not properly understood or ‘read’ the evidence we have of the attitudes towards politics of these people, and that we have assessed their actions purely within the framework of our own understandings. In particular, their views about Chartism, the major working-class political movement of the period, have been a key to how they have been perceived. But our understanding of these views has been distorted by what appeared to be their lack of knowledge of the ‘real’ aims of the movement. Instead, if we look at other types of evidence, such as from the theatre, we can find clues as to how their understandings of such conflicts may simply have been different, and so be able to explain in much more rational terms the actions and beliefs of this historically inarticulate group.     

Working life and retirement pensions in Spain: The simulated impact of a parametric reform

This article aims to offer an ex ante evaluation of the impact of a parametric reform of the Spanish pension system that would involve increasing the reference period used to calculate benefits, an approach proposed many times by various actors in the socio‐economic field. Such gradual change may be categorized as a non‐structural reform of the pension system. This contrasts with reforms of a structural nature that have been very popular in Latin America and elsewhere, involving the creation of defined contribution individual account schemes. As regards the parametric reform proposed in this article, the main findings indicate that it would have a small but negative impact on pension income for pensioners and would reduce income distribution.     

Lone Parents and Welfare‐to‐Work in England: A Spatial Analysis of Outcomes and Drivers

Mirroring changes across nations of the Organisation for Economic Co‐operation and Development, recent UK governments have redrawn lone parents' entitlement to social assistance benefits ever tighter around participation in the labour market. A radical shift since 2008 has been the gradual transfer of most non‐employed lone parents into the ‘activating’ Jobseekers' Allowance (JSA) regime. The enhanced conditionality requirements of this JSA regime have been justified by both paternalistic and contractualist arguments but, however justified, are built on the premise that behavioural factors drive lone parent employment outcomes, a view made increasingly forcefully under the current Coalition government. This article uses up‐to‐date administrative data at local authority level across England to provide a geographical perspective into the sub‐national changes in lone parent employment outcomes since the transfer to JSA from 2008, as well as the relevant importance of the alternative structural and behavioural accounts to these outcomes. The findings suggest that the JSA transfer has increased lone parent employment, that structural rather than behavioural drivers are more relevant causal factors and that there is good reason to be concerned about the effect of the reforms on the well‐being of lone parents and their children.     

When and How Does Ethnicity Matter? A Cross-National Study of Social Work Responses to Ethnicity in Child Protection Cases

It is an established part of the conventional wisdom of socialwork theory and practice that attention to ethnic differenceis at the core of best practice. This principle is endorsedin welfare legislation or in the training and education of socialworkers in most European countries. Little empirical evidenceexists, however, to demonstrate that this principle guides practitionerdecision making, or to verify the claim that it benefits ethnicminority clients. At a cross-national level, no robust evidenceexists to illustrate similarities or differences in social workresponse to ethnicity. This article reports on aspects of astudy that examines these concerns within the context of childprotection. It demonstrates, perhaps surprisingly given nationalvariations in legislation and professional practice, that overall,country by country, the child’s ethnic affiliation evokeslittle significant response by social workers, confirming alargely universalist approach. However, through a detailed focuson the qualitative data, this paper considers the nature ofthe references to ethnicity that are made by social workersin terms of how they confirm or refute the dominant approachto multiculturalism within social work.     

The impact of social security reform on the labor market: The case of Colombia

This paper simulates the effects of three increasingly bolder reforms in the Colombian social protection system: the equalization of salaried and self-employed labor contributions; the removal of payroll taxes, parafiscales; and the complete delinking of social protection benefits from labor status. We collect nationally representative information concerning individual willingness to pay for several packages of social security benefits; identify and quantify – for the first time – three specific distortions caused by existing social security and social assistance systems; and simulate the gains that social protection reforms would bring about in terms of reduced labor distortions. We find that workers in Colombia, regardless of occupation, have a very similar willingness to pay for the full insurance package – below 20% of their labor earnings – and very similar valuation of social protection services – about 50% below par. Labor distortions are large, as expected from very high labor costs, but we quantify an implicit formality tax and informality subsidy ranging between 2 and 27 percent of different representative workers’ earnings. Critically, the long-discussed reforms in Colombia – including the elimination of parafiscales – will not reduce substantially the multiple distortions in its labor market.     

The difficulties of extending social security in Tunisia's agricultural sector

The development of social security in the agricultural sector in Tunisia faces obstacles due to the particular social and economic conditions that apply. The desire of the public authorities to extend social protection to the rural population as a whole runs up against both technical and financial problems. The exact number of people employed in the agricultural sector is not known and it is difficult to define precisely the range of persons to be protected. The changes that have been made in the legal framework in order to adapt social security to the composition and the working conditions of the agricultural population have not achieved their objective. The lack of a coherent system is reflected in particular in the variety of legal provisions and schemes which may be applicable to employees engaged in the same work or working in the same firm. The precarious nature of agricultural employment, the low incomes and thus the low contributory capacity of the workers, the level of benefits offered — in the agricultural schemes sometimes very much below those in the general scheme — all these make social security appear impossible to achieve or not worth while. The resistance encountered by the social security institution may also be due in part to the failure of the Social Security Fund to make people sufficiently aware of the position in the face of some of the traditional structures of solidarity.     

The Gender Dimension of Social Policy Reform in Turkey: Towards Equal Citizenship?

This article discusses the current social policy reform process in Turkey from a gender perspective. Until now, social security and labour regulations have provided women with special benefits and protections. Depending on the particular case, these gender‐specific policies can be interpreted differently – as positive discrimination, satisfying practical gender interests, or as a reinforcement of traditional gender norms and relations, stigmatizing women as a weaker, vulnerable group in need of special protection. Ongoing reform initiatives, however, neutralize most of these long‐lasting gendered policies, either by terminating rights formerly enjoyed only by women or by extending these rights to men as well. The article questions this changing nature of social policy as to whether it promises equal citizenship for women or increases their vulnerability, in the absence of former benefits and without sufficient policy measures for improved capability.     

How fair are unemployment benefits? The experience of East Asia

Despite an increasing emphasis on active labour market measures, unemployment benefits still remain a focal point of employment protection. This article takes the cases of four East Asian economies – China, Japan, Republic of Korea, Taiwan (China) –, which are often characterized as having welfare states with a strong developmental and productivist orientation, to investigate whether, as is sometimes argued, unemployment benefits are restrictive and exclusionary. In doing so, it examines the logic behind the design of unemployment benefits and argues that they are in fact progressive in design and fair when they pay out. Nonetheless, low effective coverage and low benefit rates weaken their redistribution and compensation objectives.     

Involvement of Ministries of Health in Health Service Coverage Decisions: Is England an Aberrant Case?

This article examines the involvement of ministries of health in making health service coverage decisions in Denmark, England, France and Germany. The study aims to inform debate in England about the feasibility of reducing perceived ministerial and bureaucratic ‘interference’ in decisions affecting the National Health Service, based on interviews with senior government officials and other health system stakeholders. Ministries of health differ in their involvement in health system governance and coverage decisions (‘the benefits package’), reflecting differences in institutional arrangements. In all four countries, organizations at arm's length or independent from government are either involved in providing technical advice to the ministry of health or have been mandated to take these decisions themselves. However, ministries of health occasionally intervene in the decision‐making process or ignore the advice of these organizations. The Department of Health in England is not an aberrant case, at least in relation to coverage decisions. Indeed, ministries of health in Denmark and France play a larger role in making these decisions. Public pressure, often amplified by the media, is a shared reason for ministerial and ministry involvement in all four countries. This dynamic may thus limit the feasibility of attempts to further separate the NHS from both the Department of Health and wider political pressures.     

Were We Really All in it Together? The Distributional Effects of the 2010–15 UK Coalition Government's Tax‐benefit Policy Changes

This article examines the distributional impacts of changes to benefits, tax credits, pensions and direct taxes between the UK general elections of May 2010 and May 2015. The changes did not have a common effect on all household incomes; nor did the direct tax‐benefit changes contribute to deficit reduction. Effectively, reductions in benefits and tax credits financed part of the direct taxes cuts, but the overall net fiscal cost increased pressure for cuts in other public services and increases in other (more regressive) taxes. The main gains were in the upper middle of the income distribution, and the main losers were at the bottom and those close to, but not at, the very top. Across most of the distribution the changes were regressive. By comparing with other analyses of policy changes in the same period, we illustrate the importance of analytical choices and assumptions for detailed conclusions on their distributional effects. We also show how some groups were clear losers or gained little on average – including lone parent families, large families and families with younger children. Others were gainers, including two‐earner couples, and those in their fifties and early sixties. The findings show that a dominant feature of the period was that the combination of higher tax‐free income tax allowances, financed by cuts in benefits and tax credits, was generally regressive. As this combination also lies at the heart of the proposed policies of the Conservative government since 2015, we would expect these effects to be intensified in the coming years.     

The trinity of wage setting in EMU: A policy proposal

Diverging labor cost developments are often considered to be one of the most important factors that led to large current account imbalances in the euro area (EA) in the run-up to the global financial crisis. It has also been shown that wage growth differentials have significantly lowered the co-movement of EA countries’ business cycles – the most widely used meta-criterion for optimum currency areas. Against this background, this paper develops a wage-setting benchmark that aims to keep the economy in internal equilibrium and to maintain price stability, while it also exhibits the capacity to correct for external imbalances. The proposed wage benchmark is very simple and may serve as an anchor for the macroeconomic dialogue in Economic and Monetary Union. In order to demonstrate the potentially beneficial effects of such a wage benchmark we present some simulations showing how current account balances and labor costs would have developed across EA countries if the rule had served as a benchmark already in the run up to the crisis.     

Australia saved from the financial crisis by policy or by exports?

There is general agreement that Australia weathered the Global Financial Crisis (GFC) better than many other advanced countries. There is less agreement as to why. In popular discussion, fiscal policy and continued strong export demand have been championed, with less support for monetary policy. But there is little formal empirical work which disentangles the relative contributions of these three factors. It is the purpose of this paper to make a start in this direction. It does so within the framework of a small vector-autoregressive model. The main finding is that the three factors together actually exacerbated the effects of the GFC on average over the 2009–2011 period, with most of the blame falling on fiscal policy. This seemingly anomalous finding is further explored and explained by households’ response to cash hand-outs which were saved and not spent; indeed, it is conjectured that they took cash hand-outs and government predictions of doom as indicators that bad times were ahead and saved rather than spent in response.     

Benefit ‘Myths’? The Accuracy and Inaccuracy of Public Beliefs about the Benefits System

There is a widespread assumption by academics and commentators that negative public attitudes to the benefits system are due to ‘myths’ held by the British public. However, there is little research on whether the public believe these ‘myths’, nor critical scrutiny of benefit ‘truths’. This article therefore investigates what British people believe about the benefits system, and the extent to which these beliefs can be regarded as correct. To do this, we use 46 measures from 18 datasets (including British Social Attitudes, the European Social Survey, Eurobarometer, and surveys by YouGov and Ipsos MORI made available for academic study for the first time), and compare these perceptions to true figures obtained from a variety of sources. We find that – against expectations – there are some areas where the public are (on average) relatively accurate (e.g. the share of the population who currently claim out‐of‐work benefits). Yet overall, our evidence shows that the British public have low levels of understanding of the benefits system, primarily in ways that seem likely to undermine public support. People wildly overestimate unemployment benefits compared to pensions, the value of unemployment benefits, and misperceive trends in claims. While it is difficult to know the true level of benefit fraud exactly, the public overestimate fraud compared to any reasonable figure. We conclude by discussing the implications for both understanding and changing attitudes towards benefits.     

Little cash to large households: Cash transfers and children's care in disadvantaged families in Ghana

Social protection is widely considered to have a positive effect on children, including supporting improvements in nutritional, educational and health outcomes. Much less is known, however, about the impact of interventions on children's care. This article considers the impact of a social cash transfer targeted at poor households – Ghana's Livelihood Empowerment Against Poverty (LEAP) programme – on child well‐being, quality of care and preventing children's separation from their parents as perceived by programme and non‐programme beneficiaries in a context of vulnerability, large households and widespread informal kinship care. Findings suggest that cash transfers can improve both material and non‐material aspects of well‐being and contribute to the quality of care and have the potential to prevent children's separation from their parents. At the same time, not all children appear to benefit equally, with non‐biological children being disadvantaged. The combination of large household sizes with programme design and implementation challenges, including low transfer amounts, a cap on the maximum number of eligible household members and poor sensitization and follow‐up, undermine the positive role that cash transfers can play.     

The limits of inequality: Public support for social policy across rich democracies

Does public opinion react to inequality, and if so, how? The social harms caused by increasing inequality should cause public opinion to ramp up demand for social welfare protections. However, the public may react to inequality differently depending on institutional context. Using ISSP and WID data (1980?2006), we tested these claims. In liberal institutional contexts (mostly English‐speaking), increasing income inequality predicted higher support for state provision of social welfare. In coordinated and universalist contexts (mostly of Europe), increasing inequality predicted less support. Historically higher income concentration predicted less public support, providing an account of the large variation in inequality within the respective liberal and coordinated contexts. The results suggest opinions in liberal societies – especially with higher historical inequality – reached the limits of inequality, reacting negatively; whereas in coordinated/universalist societies – especially with lower historical inequality – opinions moved positively, as if desiring more inequality.     

The interaction of pillars in multi‐pillar pension systems: A comparison of Canada,Denmark, Netherlands and Sweden

Canada, Denmark, the Netherlands and Sweden have advanced multi‐pillar pension systems. Using micro‐simulations, this article presents a close examination of the interaction of pillars in these countries. The relative importance and the role of the different pension pillars vary from country to country, and according to age, income, gender and socio‐economic dimensions as well as between generations. A further area of investigation is the mitigation capacity of the four pension systems. On the one hand, adverse labour careers lead to lower life‐time earnings and lower private pension accruals. On the other hand, these effects are mitigated through the design of pillars and their interaction. Mitigation is important to income security and stability in retirement and to post‐retirement income distribution. However, mitigation mechanisms come at the cost of incentives. Moreover, in many countries, the generosity of public benefits is set to decrease – increasing the importance of private pensions. This will shift risk and uncertainty from employers and pension institutions to individuals. Thus, risks and uncertainties related to private pensions will become more important, raising questions about the division of responsibilities between public and private pensions, and about the potential of mitigating such risk through pillar interaction. These concerns are further reinforced by labour market changes. Although a pension system free of distortions is inconceivable, this article seeks to contribute to addressing how mitigation should be designed, and how mitigation and risk sharing should be balanced against incentives, challenges which are as much political as technical.     

Unemployment insurance in Bulgaria and other East European countries: The transition to a market economy

Unemployment places those it affects in a situation of dependency on unemployment benefits. The regulation of that dependency and the measures necessary to avert it, in Bulgaria (and also in other East European countries) during the period of transition to a market economy, forms the subject of labour and social insurance legislation relating to unemployment and introduced on a temporary basis. Unemployment insurance benefits (unemployment benefits in cash, unemployment assistance, social assistance) are provided for limited periods fixed in the light of the nature of the benefit, the causes of unemployment, the number of years of service, age, gender and other factors. The degree of dependency of unemployed persons on such benefits is also determined by the level of those benefits. The principal categories of legal instruments by which that dependency can be averted or reduced are (1) contributions by the State to the establishment of labour law relationships by providing information to unemployed persons on job vacancies, vocational training and retraining measures, job creation measures and placement; (2) incentives to employers to maintain existing jobs and to create new ones (credits, exemption from interest payments, etc.).