The effects on intra‐generational inequality of introducing a funded pension scheme: A microsimulation analysis for Estonia

This article uses a single male cohort microsimulation model to analyse the intra‐generational and distributional effects of a shift in Estonia from a defined benefit pay‐as‐you‐go (PAYG) pension system to a multi‐pillared system with a PAYG scheme with contribution‐based insurance components and a funded pension scheme. We contribute to the literature on microsimulation by showing how introducing contribution‐based insurance components and compulsory defined contribution (DC) schemes can increase pension inequality. Our results show that in the case of a high level of inequality in labour earnings and high long‐term unemployment rates, such as in Estonia, the introduction of a very strong link between contributions and future benefits leads to considerably higher inequality in pension incomes as measured by the Gini coefficient. Simulation results for Estonia suggest that inequality in old‐age pension incomes more than doubles when the reforms mature. In contrast, the inequality in replacement rates decreases.     

Complexities in Assessing Unemployment Benefits and Policies

Employed workers cannot access unemployment insurance as a matter of choice. Benefit periods and benefit amounts vary between groups in the population. Unemployment benefit recipients have not only rights to benefits but also obligations to meet in order to maintain eligibility. The existence of functional equivalent benefit schemes contributes to benefit transition and substitution. All these aspects are of crucial importance both for the economic well-being of families with unemployed members and for policymaking. This article illustrates some of these complex institutional aspects through an analysis of benefits for unemployment in a number of northern European countries in 1996 and by reference to recent Danish experiences.     

Non‐Take Up of Social Benefits in Greece and Spain

Even though interest in non‐take up of social benefits is considerable in many European countries, the topic is under‐researched in southern Europe. This article provides preliminary estimates of the extent of non‐take up of two pairs of means‐tested retirement benefits in Greece and Spain. The benefits examined are: (1) the minimum pension supplements pensioner social solidarity benefit EKAΣ and complementos por mínimos; and (2) the social pensions pension to uninsured elderly and pensión de jubilación no contributiva. The article finds that non‐take up of social benefits in the two countries is rather extensive, examines the methodological difficulties inherent in the analysis of non‐take up, and concludes with a discussion of the results and their implications.     

National pension systems and mass opinion: a case study of confidence, satisfaction and political attitudes in Norway

It is commonly assumed that popular support for national pension systems depends on widespread satisfaction with projected benefit levels among the working age population, and in particular that public support for the system will be jeopardised if the taxpayers do not feel confident about eventually receiving the promised benefits. On the basis of Norwegian survey data, two sets of questions are addressed in the article: (1) Is there a widespread lack of confidence in and satisfaction with the Norwegian National Insurance pension scheme? and (2) Is there an association between confidence and satisfaction and people's political attitudes towards the National Insurance pension scheme? Although we do not find any signs of a dramatic erosion of confidence towards the system, we do find that overall satisfaction with projected benefits is low among the working age population. Contrary to what one might expect, however, confidence and satisfaction from the point of view of individual interests appear not to be associated with a political preference for privatisation.     

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.     

Health and welfare of immigrants and access to services in Australia

The main issues in relation to the provision of health and social welfare services for migrants in Australia are: (a) to ensure access and equity; (b) concern about the relatively high proportions of some groups from specific birthplaces requiring support; and (c) the complexity and costs of ethnically specific services. This article focuses on the major pensions and benefits paid by the Department of Social Security, particularly the age pension and unemployment benefit. It also examines the interrelationship between mortality, morbidity, private health insurance, use of health services and the proportions on health-related pensions. Linked with these issues is the debate about an appropriate level of immigration when the unemployment rate is high, as in the current recession, and when new arrivals have little prospect of finding a job. A second major concern is the cost of caring for elderly immigrant parents who have come to Australia under the family reunion program.     

The Politics of Public and Private Pension Generosity in Advanced Democracies

The quantitative strand of social policy research suffers from a triple deficit: analyses of aggregate expenditure dominate, most of the few studies of replacement rates focus on unemployment or sickness benefits while pensions are excluded, and the interdependence between public and private pension plans is often ignored. This article addresses the said deficits, first, by discussing the pension sectors' theoretical peculiarities and by proposing two hypotheses: one on the role played by political parties in implementing public pension retrenchment, and the second on their role in extending private pension plans. Second, the article presents regression results of public pension replacement rate changes in 18 developed democracies. The findings show considerably smaller cuts to pensions than to unemployment or sickness benefits, and striking differences regarding partisan effects between the sectors. Lastly, the article assesses partisan effects on private pension plans, detecting some rather surprising effects. Most noteworthy is the fact that those parties which reduced public pension generosity during the 1990s (i.e. Social Democrats) cannot claim responsibility for compensating these cuts by eliciting higher private engagement.     

Comparing unemployment protection and social assistance in 14 European countries. Four worlds of protection for people of working age

Pfeifer, M. Comparing unemployment protection and social assistance in 14 European countries. Four worlds of protection for people of working age This article aims to show which policy responses 14 Western European countries have adopted to deal with rising unemployment levels and increased need for benefits during working age. In contrast to earlier studies, both components of unemployment benefits (UB), i.e. unemployment insurance and unemployment assistance, were taken into account in a social rights indicator that depicts the legal entitlements of the unemployed. In total, there were eight indicators of both UB and social assistance representing expenditure, generosity, problem pressure and benefit entitlements. The following cluster analysis groups countries using these indicators. The resulting typology consisted of four ways of protecting the working‐aged: an extensive safety nets type operating well with functioning labour markets; a liberal protection type dealing with low levels of unemployment; a targeted protection type combined with an insider–outsider divide on the labour market; and lastly, a patchy safety nets type facing high unemployment levels.     

Income security for older people: An Asian perspective

In Asia and the Pacific, as in other developing regions, the continuing growth of the aged population has a great impact on social security programmes generally and, in particular, on the income security of older persons. In societies where traditional support systems are breaking up, their need for social security protection is increasingly important. A system of social security for the elderly population exists in most countries of the region. Many are provident fund schemes, which are basically saving schemes, and their coverage is low. Where social insurance pension schemes exist, the levels of benefits provided are also low. The focus for future development, therefore, lies in converting the savings schemes into multitiered pension schemes, extending their coverage and raising the level of benefits. In this context the critical question concerns the role of the State and the type of schemes used. The need for public pension schemes is great in Asia and the Pacific, where the level of poverty is comparatively high. Building pension schemes, whether public or private, involves a set of issues that need to be addressed. This article considers the systems currently in place and the challenges and limitations faced when considering the future development of social security in this area.     

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.).     

Partisanship,continuity, and change: Politics in Finnish unemployment benefit reforms 1985–2016

The apparent decline of partisan effects on social policies since the 1980s has encouraged the development of theories that challenge the traditional partisan politics theory. Although the new politics approach pointed to institutional path-dependence and to the unpopularity of radical retrenchment, recent research has highlighted shifts in electoral landscapes, differences in party systems and institutional contexts, and changing party-voter linkages. This in-depth case study contributes to debates on partisan effects by focusing on Finland, whose dualistic unemployment benefit system and institutional and political conditions provide an interesting case to analyse changing partisan effects. The aim is to explain, through qualitative policy analysis, why government partisanship has not had a significant effect on unemployment benefit levels since 1985. The explanations are different for earnings-related and flat-rate benefits. For the former, retrenchment efforts have seen a distinct partisan divide, but trade unions have thwarted most cutbacks; thus, although partisanship has not mattered much for policy outcomes, power resources have remained important as inhibitor of cuts. For the latter, parties that in the late 1980s still had differing priorities have since converged on policies emphasizing activation and work incentives. Universal flat-rate benefits have lacked political support and have been left to stagnate. The study suggests that one single theory is not sufficient to explain developments even in one single welfare policy—there are too many aspects to cover—not to speak of the entire welfare state consisting of an array of different schemes.     

Promoting a higher retirement age: A prospect‐theoretical approach

Demographic ageing and the necessity of raising the retirement age is one of the most frequently debated topics among European welfare policy experts. This study used prospect theory as developed in behavioural economics to explain public attitudes towards pension reforms. It argues that, in line with prospect theory, negative incentives are more useful in changing people's attitudes in favour of a higher statutory retirement age than are positive incentives. Therefore, in the case of increasing life expectancy, defined‐contribution schemes that apply actuarial formulae linking the level of starting monthly pension benefits to life expectancy are more useful in promoting a higher retirement age than conventional defined‐benefit schemes, which typically do not forge an automatic connection between longevity and starting pensions. The implications of prospect theory for attitudes towards pension reforms were tested using Eurobarometer survey data collected in 2004 and 2009 in the Czech Republic, Poland and Slovakia.     

Financial hardship during unemployment in Norway: the impact of public and private income support

It is common to assume that long-term unemployment no longer causes financial hardship because of generous welfare benefits. It is further assumed that unemployment benefits have eroded the traditional role of the family in protecting its members against hazards. This panel study of long-term unemployed people in 1991-1992 demonstrates the inadequacy of unemployment benefits and the importance of family support in reducing the risk of financial hardship. Vulnerable household types, such as single people and families with limited economic resources, at the outset seem unable to bear the personal risk of unemployment that is built into the benefit scheme. Persons disadvantaged at the outset risk a downward spiral because of long-term unemployment. Especially during times of high unemployment, the compensation level is not optimal from a welfare point of view. Greater coverage and more generous unemployment benefits may help unemployed people to cope better financially and thus avoid applying for discretionary and highly stigmatized social assistance allowance.     

The impact of the use of the social welfare services or social security benefits on attitudes to social welfare policies

Muuri A. The impact of the use of the social welfare services or social security benefits on attitudes to social welfare policies
Int J Soc Welfare 2010: 19: 182–193 © 2009 The Author(s), Journal compilation © 2009 Blackwell Publishing Ltd and the International Journal of Social Welfare. This article investigates the attitudes of citizens and clients to social welfare services and social security benefits. The data come from a Finnish national survey conducted at the end of 2006. First, the article overviews the previous welfare‐state studies relating especially to the theoretical perspectives of self‐interest and legitimacy. The empirical analysis indicates (i) that a different operation of self‐interest can only weakly explain the differences in attitudes between services and benefits; (ii) that there is general support for Finnish social welfare services and social security benefits, which, however, is mixed with growing criticism among women and pensioners who are supposed to benefit most from the welfare policies; and (iii) that such determinants of attitude as gender, use and, to some extent, lifecycle have become as important as class‐related factors such as income and education.     

‘I Might not Live That Long!’ A Study of Young Women's Pension Planning in the UK

There has been considerable concern about levels of pension saving especially given increases in longevity and rising pension deficits. In particular, the prospects of many future female pensioners have been questioned. As pensions are determined by contributions throughout the life course it is imperative to comprehend the attitudes, knowledge, expectations and savings habits of people from an early age to explore why under‐saving occurs. This is particularly pertinent given recent governments' emphasis on individual responsibility for financial provision in retirement. However, there is little research which focuses specifically on young women's attitudes or planning towards pensions despite considerable concern about the future of women's pensions. This article considers young women's (18–30) attitudes towards pensions and whether they differ according to socio‐economic status by using interviews with 15 women (five in routine and manual occupations, five intermediate, five professional and managerial) about how knowledge and choice, trust, responsibility, risk and uncertainty impact on their pension decisions. It is evident that the ability and willingness of people to contribute to a pension depends, among other things, on the pension offered by employers, the pension requirements in place and immediate financial needs. Therefore this article shows that pension policy needs to take into account women's employment histories, which are often fragmented and diverse, when considering young women's attitudes towards pension saving.     

Pensions in Nigeria: The performance of the new system of personal accounts

In 2004, Nigeria copied the 1981 Chilean pension reform and established a funded system based upon personal accounts. The new system was neither appropriate for a country such as Nigeria, nor did it meet aspirations of improving pension coverage or helping economic growth. The current financial and economic crisis hit the scheme in so far as it hit stock values. However, more important has been the negative real interest rates that can be earned on government bonds and on bank deposits — where the majority of contributions are invested. Bank scandals and rising fiscal deficits do not breed confidence in the system or the government's ability to deliver meaningful benefits in old age.     

利益、博弈与养老金改革:对养老金制度的政治社会学分析

本文运用新多元主义理论探讨养老金改革中的利益博弈和私有化改革的发展趋势。对拉美和中东欧国家的研究表明,养老金的改革得益于其特殊的政治体制、外生行动者的支持和政府的强力推动,而否决点的缺失和社会组织力量的弱小又减少了养老金改革的阻力。但对美国、英国和欧洲的分析表明,由于利益的多元化、否决点的分散,以及强大的工会力量,社会保障私有化的改革困难重重。     

The Time‐related Underemployment of Lone Parents during Welfare Reform,Recession and Austerity: A Challenge to In‐work Conditionality?

Reforms to UK social security benefits introduced between 2008 and 2012 that increased lone parent obligations to enter employment coincided with economic crisis and government austerity. Increases in underemployment in the broader population during this period both in terms of unemployment and time‐related underemployment raise questions regarding the extent to which lone parents not only managed to enter paid work but obtain a sufficient number of employment hours. Activation policies have increased labour market exposure at a time of greater underemployment. At the same time, high levels of economic hardship, in the context of stagnant real wage growth and benefit cuts linked to broader austerity policy, could place additional pressures on lone parent time‐related underemployment where a desire for greater employment hours to improve household income is not met by availability. We present findings showing disproportionately high growth in time‐related underemployment among lone mothers with, at peak, around one in five employed lone mothers with a youngest dependent child aged over five experiencing such underemployment. The implications to in‐work conditionality policies and the roll out of the UK's new working age benefit Universal Credit are highlighted.     

Explaining differences in unemployment benefit takeup between labour migrants and Dutch native workers

The large increase in Eastern European migrants entering the Dutch labour market has led to concerns about their potential claim on Dutch unemployment benefits. We use a decomposition analysis to investigate differences in uptake of unemployment benefits between migrants and native Dutch employees by analysing register data for all employees in the Netherlands in 2015. The results show that Eastern European migrants, similar to other migrants, receive unemployment benefit more often than native Dutch employees. This difference can be largely ascribed to job characteristics. The inclusion of unemployment risk in the analysis reveals that non-working migrants are much less likely to receive unemployment benefits than Dutch natives.     

北京市失业保险金支出与公共就业服务联动机制研究

本文以北京市失业保险金在公共就业服务上的支出为主题,以失业人员为主要调查对象,对失业保险金促进就业的作用及公共就业服务效果进行深入调研,客观分析与评价了北京市失业保险金在公共就业服务上的支出效果,旨在找出该过程中存在的问题,并提出有针对性的对策和建议。