China’s social security response to COVID-19: Wider lessons learnt for social security’s contribution to social cohesion and inclusive economic development

China has adopted an array of special social security measures in response to the spread of the COVID-19 virus, to mitigate the downside social and economic impacts caused by the pandemic. Measures include the reduction, exemption and deferral of social security contributions by employers, the extension of benefits coverage for employees, and the provision of more accessible e-services by social insurance agencies. The article points out that a preliminary assessment of those measures would suggest that they have played a key role in supporting social cohesion and in stabilizing the economy. In a critical manner, the article compares the measures adopted in China with those of other countries, and identifies how China could learn from international practice and experience. Finally, and based on recent Chinese experience, the article presents proposals that seek to improve the longer-term contribution made by the Chinese social security system to realize the goals of social cohesion and inclusive economic development. As set out in China’s Social Insurance Law of 2010, the social security system should not only support a fair sharing of benefits of development, but also promote social harmony and stability.     

Introduction: Social security,inclusive growth and social cohesion

This special issue selectively addresses the relationship linking social security systems, inclusive growth and social cohesion. Inclusive growth and social cohesion are viewed as political expedient and necessary goals for national economies. The desirability of their attainment reflects political pragmatism, the “social contract”, as much as it does a commitment to the wider emancipative goal of social justice. The International Social Security Association (ISSA) has often paraphrased these assertions to argue that there can be “no social justice without social security”. Of course, progress achieved towards the realization of the goals of inclusive growth and social cohesion should be equally beneficial for the adequacy, sustainability and coverage of social security systems. The aim of this special issue is to unpack and better understand the nature of this relationship.     

Labour market integration of unemployed youth from a life course perspective: the case of Norway

The aim of this article is to analyse the labour market integration of previously unemployed youth in a life course perspective. 'Work, Lifestyle and Health' is a longitudinal panel survey following a sample of nearly 2,000 individuals who are representative of the Norwegian cohorts born between 1965 and 1968. The survey was first conducted in 1985 with follow-ups in 1987, 1989, 1993 and again in 2003. Unemployment among young people does not necessarily lead to marginalisation and social exclusion. Long-term effects will be dependent upon how the youths cope with unemployment, the duration of the unemployment period, their mental health status and educational qualifications. Many young unemployed people are not entitled to unemployment benefits because they lack work experience. Consequently, they are dependent on support from their family and/or social assistance. However, there is still much to learn about the long-term consequences of youth unemployment, e.g. whether or not the youths have received social assistance and what are the long-term consequences for their future labour market career and labour market integration.     

How unemployment duration affects social assistance receipt: evidence from Finland

This article reports on a study of the impact of unemployment duration on the probability of becoming a social assistance recipient and on the time spent on social assistance. The data are taken from a local Finnish labour market consisting of the cohort of unemployed people at a given date (n = 2,274). The data are linked to information about the number of months recipients received social assistance during the subsequent year. Count data regression models of the hurdle type are estimated. The results of the analysis suggest that the impact of unemployment duration on the probability of becoming a social assistance recipient is explained to a large extent by changes in the distribution of types of unemployment benefits between people with different lengths of time spent in unemployment. Unemployment assistance recipients are more likely to become social assistance recipients and to spend longer periods on social assistance than are recipients of unemployment insurance because the unemployment benefits for the latter are higher. Among social assistance recipients, time spent on the transfer increases with unemployment duration only for those who are in frequent need of assistance.     

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.     

China's social assistance policy: experiences and future directions

The Minimum Living Standard Guarantee System (MLSGS) forms the core of China's current social assistance policy, and special assistance programmes are used to supplement this policy. This paper scrutinizes the evolution and achievements of the social assistance policy, and analyses the challenges and problems that the policy faces. In this paper, we argue that the international trend of social assistance reforms, institutional background changes and the problems of social assistance in China require a developmental model to guide the future development of the social assistance policy. Therefore, social assistance policy should not only fulfil the basic living requirements of the underprivileged and enable underprivileged people to share the outcomes of economic and social development, but also should enable the underprivileged to develop human capital and participate in the labour market. To move towards developmental social assistance, this article proposes several relevant policy suggestions.     

Unemployment compensation and the use of social assistance among second-generation immigrants in Sweden

Previous studies have shown that the participation of first-generation immigrants in the Swedish income security system deviates from that of the native population. However, so far there has been no research that has focused on this issue where second-generation immigrants are concerned. This study shows that the rates of participation in different parts of the income security system vary considerably between different groups of second-generation immigrants. Second-generation immigrants whose parents come from Western Europe have low participa-tion rates in all the studied parts of the income security system. Their participation rates are even lower than for natives with both parents born in Sweden. Second-generation immigrants with parents from southern Europe and from outside Europe, on the other hand, have very high participation rates in especi-ally social assistance. The differences between the groups are of course to a great extent explained by differences in their labour market situation. According to the findings of the study, there are reasons to be concerned about the future labour market integration of second-generation immigrants with parents of non-European origin.     

Targeting social assistance in Azerbaijan: what can we learn from micro‐data?

This article investigates the targeting performance of social assistance programmes in Azerbaijan, a low-income country in transition from a centrally-planned economy to a market economy. Micro-data from a nationally-representative household survey are used, through the employment of several empirical approaches, to assess the extent to which social assistance identified the neediest households. The set of empirical evidence presented in this article shows a low targeting effectiveness of the social assistance programmes. It indicates that a significant proportion of the poor did not benefit from social assistance, whilst a substantial share of social benefits was leaked to the non-poor. The receipt of benefits was also weakly associated with a variety of indicators of living standards including consumption, education, number of children, ownership of dwelling, household durables, motor vehicles, agricultural assets, and access to sanitation and utility supply as well as social capital. It is argued that the current social assistance programmes should be reformed to increase the success in reaching the poor.     

Assimilation and participation in social assistance among immigrants

This article analyses assimilation and social assistance participation among immigrants in Sweden. Probit regressions are used in order to estimate the participation rates in social assistance among different groups of immigrants and native-born Swedes. The analysis is based upon panel data since the same individuals have been tracked in different years. The results show that among immigrants from the Nordic countries and from Western societies the participation rates are about the same as among comparable native-born Swedes. Immigrants from South European and non-European countries are over-represented in welfare usage. This over-representation remains even after controlling for differences in observable characteristics such as age, gender, family situation and educational attainment. Non-European immigrants assimilate out of welfare dependency at a faster rate than European immigrants, but despite this, non-European immigrants are over-represented in social assistance utilisation even after 20–25 years of residence in Sweden.     

Social assistance and minimum income benefits in old and new EU democracies

Nelson K. Social assistance and minimum income benefits in old and new EU democracies Int J Soc Welfare 2010: 19: 367–378 © 2009 The Author, Journal compilation © 2009 Blackwell Publishing Ltd and the International Journal of Social Welfare. In this article, social assistance developments are analysed in a large number of European Union (EU) member states, including European transition countries and the new democracies of southern Europe. The empirical analysis is based on the unique and recently established SaMip Dataset, which provides social assistance benefit levels for 27 countries from 1990 to 2005. It is shown that social assistance benefits have had a less favourable development than that of unemployment provision. Hardly any of the investigated countries provide social assistance benefits above the EU near‐poverty threshold. Social assistance benefit levels have not converged in Europe. Instead, divergence can be observed, which is due mainly to lagging developments in eastern and southern Europe.     

A comparison of social assistance in China and Sweden

This article compares social assistance in China and Sweden, and finds a number of similarities. In both countries, benefits are regulated by a national policy, while local governments are responsible for administration. The proportion of the population receiving social assistance is surprisingly similar in China and Sweden. Social assistance reduces dire poverty but is less successful in raising full-year recipients above the poverty line used in international comparisons of developed countries. During the last decade, the income thresholds used to assess claims have not increased at the same rate as the mean income level in both countries. Not surprisingly, there are also substantial differences in the social assistance systems of the two countries. The Swedish system has a long history; the Chinese is relatively recent. The income thresholds differ in terms of their method of calculation and the extent of the relief they offer. While the same thresholds are applied across Sweden, in China they vary by location. The profiles of recipients also differ between countries.     

The relevance of institutions and people’s preferences in the PSNP and IN-SCT programmes in Ethiopia

The effective implementation of social protection interventions is key for achieving positive change. The existing literature mainly focuses on issues related to programme design and impact, rather than the factors that influence the emergence, expansion and provision of these programmes. This article builds on the recent literature that indicates that the quality of institutions and people’s preferences play an important role in the implementation of social protection. It does so by using Ethiopia and its Productive Safety Net Programme – one of the largest social protection programmes in sub-Saharan Africa – as a case study, thereby contributing to debates on how to implement social protection more effectively, particularly in settings of widespread poverty and relatively low levels of institutional capacity. Based on primary qualitative data, the article finds that greater institutional quality at the local level is associated with the more effective provision of social protection. The ability of community members and social protection clients to voice preferences can lead to adaptations in implementation, although the extent to which this occurs is highly gendered.     

What works for whom? An analysis of active labour market programmes in Norway

This article examines whether some active labour market programmes (ALMP) targeted at social assistance recipients are more effective for some groups than for others in increasing self-sufficiency , i.e. gross earnings . The study focuses on the interaction between two types of programmes – employment programmes and training programmes – and the social charac-teristics of the participants. The data are derived from the pool of the entire population of social assistance recipients registered in Norway in 1995. The study adopts a quasi-experimental design. To handle selection bias, a matching procedure based on a propensity score approach is applied. Training programmes yield positive outcomes overall and for subgroups, whereas employment programmes produce no significant effects overall. However, for employment programmes there is an interaction effect between the likelihood of participation and outcome: beneficiaries with social characteristics (e.g. age, education, work experience) that are associated with a medium chance of participating experience a positive and significant increase in earnings. For those with lower and higher chances, the effect is negative. This points to the importance of conducting stratified analyses in effect evaluations. Thus, the results are also likely to be more relevant to policy makers.     

Intake strategies: organising the intake of new social assistance inquirers

This article looks at how the intake of new social assistance clients is organised in Sweden and which factors affect the existence of special intake units, using interview and register data from 100 Swedish municipalities. The discussion is organised along two distributional principles: that of general access for all citizens and that of social assistance only to those who are in need. The results show that different intake types can be distinguished: to promote or limit both access to the social assistance units and the possibility for selection among the callers. Examining factors that affect the organisation of intake in special intake units, the results show that factors related to the economic and demographic structure of the municipalities have no, or only in indirect, effect on the organisation of intake. Intake is instead mainly related to the structure of the whole social assistance unit. In addition, some factors related to professional norms have an impact.     

Lone mothers,workfare and precarious employment: Time for a Canadian Basic Income?

Abstract   The growth of precarious employment poses significant challenges to current social assistance income support policies yet it remains largely neglected in policy-making arenas. Drawing upon qualitative data from a study in Ontario, Canada, this paper examines the particular implications of these challenges for lone mothers, who figure prominently both in non-standard employment and as targets for workfare policies. In the context of changing labour markets, the article considers the potential strengths and limitations of Basic Income approaches to achieving economic security for lone mothers.     

Asset opportunity for the poor: an asset-based policy agenda towards inclusive growth in China

The concept of inclusive growth recently embraced by the Chinese government marks a new way of thinking about social policy and development. The primary goal of inclusive growth is to ensure that all people, especially the poorest, have an equal opportunity to participate in, and benefit from, the country's economic growth. In accordance with the new orientation of development strategies, there has been a paradigm shift in social policy from conventional income maintenance to promotion of the poor's asset accumulation and long-term development. Given China's striking social and economic inequalities, this article argues that an asset-based social policy is a key strategy in the strengthening of inclusive growth. The article highlights several areas of the welfare system where asset-based policies could be developed or expanded.     

Unemployment and economic security for young adults in Finland,Norway and Sweden: From unemployment protection to poverty relief

In this study, we investigated if there has been a displacement in the type and coverage of welfare services available for young unemployed adults in Finland, Norway and Sweden over the last two decades. This question is important because a number of studies have argued that the generous unemployment benefits and extensive labour market intervention found in the Nordic welfare states shield young people from the most severe consequences of economic inactivity. In this article, we instead show that during this period, less generous means‐tested unemployment and social assistance benefits have become the most important form of income protection for young people. In evidence, earnings‐related unemployment benefits now cover only 10 per cent of unemployed Swedes and Finns and 45 per cent of unemployed Norwegians aged 24 years or younger. This development marks a significant change in our understanding of unemployment protection for young people in Nordic countries.     

Risk and vulnerability in social assistance receipt of young adults in Finland

Social background may affect not only individuals’ wellbeing, but also their ability to manage the typical and problematic transitions occurring during young adulthood. Hence, this article has used Finnish population register data to analyse how social background and critical life‐course factors predict the number of months of social assistance received annually among young adults aged 19–29. Special interest was given to asking whether those with a disadvantaged social background are more vulnerable to the effects of critical life‐course factors. The results showed that social background and critical life‐course factors have independent effects on social assistance receipt. Additionally, this study shows that the effects and the incidence of critical life‐course factors can be affected by social background.     

Survivors' pensions and their impact on the Brazilian labour market

In many countries the regulations governing survivors' pensions were established in periods when female labour market participation was lower than at present. However, the current trend in many Latin American countries is for growing levels of female labour participation. In Brazil, where there are no restrictions on the concurrent receipt of retirement and survivors' pensions, and where until recently lifelong pensions could be obtained without any conditionality, not only has the accumulation of such benefits grown, but there are indications that these rules have had a negative impact on women's labour market participation. Analysis of the case of Brazil shows the need for social security regulations to adapt to labour market changes, and underlines the need to acknowledge that social security regulations can actually have an impact on the labour market.     

Evaluating social investment in disability policy

Disability policy in European countries is displaying a shift towards social investment: increasing human capital and access to the labour market. The reasoning that underlies this transition is that disabled persons would benefit from mainstream employment, but are impeded in traditional policy by deficiencies in labour supply and demand. However, the shift towards more activating policies in many countries is accompanied by a decline in social protection. It is unclear whether social investment may effectively promote the employment chances of disabled persons within this context. The present research examines this question through a quantitative, cross-sectional, multilevel analysis on microdata from 22 EU countries. Our findings suggest greater activation to predict lower employment chances, while reducing passive support shows mixed effects. Conversely, measures for facilitation in daily life predict greater employment chances, as do measures for sheltered work. These findings raise questions over the value of social investment for disabled persons—and underline the need to overcome broader barriers in the labour market and in society.