The impact of international migration on the public pension system: The case of Portugal

This article analyses the impact of replacement migration on the financial sustainability of the old‐age pension system in Portugal, a country with one of the largest ageing populations in Europe. We do this using demographic forecasts and prospective exercises for the evolution of the Portuguese economy. During the 2015–2060 period, our results evidence the positive impacts of international migration on old‐age pension system financial balances, reaching over 3 per cent of GDP after 2045. Moreover, even when taking into considering the low dynamics for the Portuguese economy, replacement migration is an important input to improve pension system financial sustainability.     

The effects of income transfers on poverty reduction in people with disabilities in South Korea

Using a nationally representative sample dataset from the 2016 Korean Welfare Panel Study, we examined the anti‐poverty effects of income transfers in people with disabilities. Our findings indicate that in households with a person with a disability, income transfers decreased by 55.9% and 84.8% of the pre‐transfer poverty rate and poverty gap, respectively. Before income transfers, households with a person with a disability were 1.94 times more likely to be poor compared to those without a person with a disability. When income transfers were offered, the chance of being poor in the disability group was only 1.11 times higher than that in the non‐disability group. Findings from the aggregated data suggest that means‐tested income transfers were more effective in reducing poverty levels than social insurance or private income transfers. At the individual level, the provision of means‐tested programs was also more likely to decrease the likelihood of experiencing poverty than social insurance and private income transfers.     

The impact of trade liberalisation on poverty and inequality: Evidence from CGE models

In this paper we carry out a systematic review of the evidence from CGE models regarding the effect of trade liberalisation on income inequality and poverty in developing countries. The evidence suggests quite strongly that trade liberalisation tends to reduce poverty, but is more likely to increase inequality than reduce it; however, the predicted effects are relatively small. Variation in the size and direction of effects can be explained by the choice of outcome measure, the fiscal response to liberalisation, the type of CGE model, and certain country characteristics – but not the method used to link the CGE model to the distribution of income.     

Breaking away from the cycle of poverty: The case of Malaysian poor

This paper observes the poverty issues examined in Malaysia and proposes the need to study the poor who have broken the poverty chain. Most studies generally focus on only the poor, their reasons for being poor, various poverty alleviation methods and poverty with regard to measurement. However, it will be more insightful if studies are carried out on the poor who have broken the cycle of poverty. Research conducted in several countries on those who have come out of poverty indicate far-reaching implications to all stakeholders. Hence, such studies in Malaysia would give a better understanding of how some of the poor have broken the shackles of poverty and are leading a better life. It would be very valuable to understand the strategies they used in real life situations to overcome the fetters of poverty.     

The impact of poverty and immigrant background on children's school satisfaction: evidence from Norway

Children's school enjoyment and satisfaction with their teachers is crucial to their quality of life. Still, we have little knowledge about what shapes positive outcomes in this respect, and to what extent groups of children and youth differ from each other. This article compares immigrant children with Norwegian children from low-income families and with a reference group of children from normal-income families. The children were interviewed at age 10–12 years, and again at age 13–15 years; thus, we can follow changes over time. Immigrant children from income-poor families express significantly higher school and teacher satisfaction than any other category of 10–12-year-olds. However, for the 13–15-year-olds, there are no systematic differences between group averages, but there are more signs of polarisation among low-income immigrant children. Explanations for these patterns are sought in the literature on social capital in immigrant families.     

Estimating the impact of the Global Financial Crisis on poverty and deprivation

Although the Australian economy has avoided going into recession since the onset of the global financial crisis, relatively little is known about the social impact of the crisis. Survey and anecdotal evidence presented by a number of community sector NGOs suggest that the demand for emergency relief and other services rose in the aftermath of the crisis. This article reports results derived from two national surveys on poverty and social disadvantage that were conducted in 2006 and 2010 – prior to and after the crisis struck. The survey data allow income‐based poverty rates to be estimated as well as the extent and nature of deprivation, where deprivation is defined as being unable to afford items that a majority regards as essential: things that no‐one in Australia should have to go without. Poverty and deprivation are not alternative indicators but can be combined into a multi‐dimensional measure of consistent poverty. The paper examines how conventional (income) poverty, deprivation and consistent poverty changed between 2006 and 2010, and analyses the sensitivity of the results to alternative definitions. The findings provide the first comprehensive evidence on how the profile of social disadvantage in Australia changed in the period that spans the financial crisis.     

The impact of child benefits on single mother poverty: Exploring the role of targeting in 15 European countries

Single mothers are vulnerable to living in poverty. The question of how to safeguard the economic status of single mothers in a context of increasing dual earnership is a crucial one. In the present study we addressed this issue by investigating the impact of child benefits on the poverty risk of single mothers in 15 European countries. We focused in particular on the design of child benefits and investigated whether targeting towards single mothers was associated with better poverty reduction. In doing so, we combined information on statutory child benefit entitlement with an empirical analysis of poverty reduction using survey data. We found that: (i) both spending effort and targeting are important to explain the effectiveness of child benefits in reducing single mother poverty; (ii) targeting is related to higher levels of poverty reduction independent of spending effort; yet (iii) it matters how targeting is done.     

Home run or strikeout: The dynamics of public opinion on new sports facilities

Determinants of political support for new sports facilities are explored. We test to what extent the civic attachment and civic optimism of a respondent promotes support for new facilities. Survey data from the 2005 CBS News/New York Times monthly poll were analyzed to find variables that affected public support for a new stadium for the New York Mets and a new arena for the New Jersey Nets. Whether New Yorkers’ were optimistic about the future of New York and whether they planned to continue living in New York had a significant impact on whether they supported new facilities. Demographic factors that frequently explain political differences did not have a significant effect. Respondents with greater civic attachment and optimism were more likely to support major sports projects. The findings open the door for additional research on how civic attachment and optimism impact the willingness of community residents to support major public projects.     

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.     

Aging in poverty: making the case for comprehensive care management

A model for holistic care management that would enhance outcomes for economically vulnerable older adults who receive an array of disjointed services administered through the older Americans Act (OAA) and local Area Agencies on Aging (AAA) is proposed. Fragmented service delivery is typically wasteful and ineffectual, but comprehensive care management that includes an autonomous care manager, a single interagency plan of care and ongoing monitoring that is client-centered may protect those aging in poverty from negative health outcomes.     

The effectiveness of poverty reduction and the target efficiency of social security transfers in South Korea, 1999–2003

The purpose of this study was to investigate the impact of social security transfers between 1999 and 2003 in South Korea, the period during which the Asian economic crisis of 1997 occurred. The study used a secondary data set, which is part of the Korea Labour Panel Data. Of 5,000 original household samples, the results for the 2,728 households (54.6 per cent) that completed the surveys for all five years studied were analysed. One finding was that the average percentage of social security transfers appeared to be nominal, as was the 1.9 per cent in 1999, which grew to 2.4 per cent in 2003. Another finding was that the average poverty-reduction effectiveness for the five-year period was as low as 7.9 per cent, indicating a slightly increasing pattern. This percentage is only one-seventh to one-tenth that of Western countries. Target efficiency appeared to be 31.8 per cent. We give the following reasons to explain why the level of the poverty-reduction effectiveness of Korean social security transfers is comparatively low: the immaturity of the Korean Old Age Pension; the lack of diversity in social transfer programmes; and a cultural factor of stronger dependency on private transfers within the family structure.     

The value of a name: Estimating the economic impact of public land designation

Public land designations have been shown to have significant impact on their contextual regional economies. This paper reviews the existing literature on how public lands impact the proximate regional economies in which they are situated. Based on this collected wisdom the paper synthesizes past lessons into a comprehensive impact methodology. This methodology distinguishes quality effects in terms of visitors’ willingness to pay for sites of higher quality and quantity effects in terms of additional visitation to such sites to give a more comprehensive methodology for characterizing visitation and economic impact of protected area designation. We focus on National Monuments and National Parks, given that these two types of public lands have the broadest popular exposure and feature the most reliable data. A case study is then presented for a hypothetical protected area in Ferry County, Washington, USA, applying this new methodology to assess the likely economic effects of different types of protected areas.     

Flexible public policy: The case of the United States wheat sector

This paper tests the proposition that flexible policy rules that tie program instrument settings to changes in market conditions can improve economic welfare compared to the prevailing practice in the United States of setting agricultural policy instruments at fixed levels once every 4 years. Flexible policy rules are obtained for the U.S. wheat sector using stochastic control methods. A constraint structure representing producer and consumer behavior and a policy criterion function representing society's weighting of various groups are estimated. It is shown that the flexible policy rules developed in this paper outperform historic policy instrument settings across a wide spectrum of economic conditions.     

The impact of financial sanctions: The case of Iran

This study provides a detailed analysis of the impact of financial sanctions on publicly traded companies. We consider the effect of imposing and lifting sanctions on the target country’s traded equities and examine the differences in the reaction of politically connected firms and those without such connections. The paper focuses on Iran due to (1) its sizable financial markets, (2) imposition of sanctions of varying severity and duration on private and state-owned companies, (3) the significant presence of politically connected firms in the stock market, and (4) the unique event of the 2015 nuclear deal, resulting in fairly rapid lifting of a sizable portion of imposed sanctions. We find that sanctions affect politically connected firms more than ordinary firms, have lasting negative effects on profitability ratios, and that politically connected firms stock prices bounce back more slowly after removal of sanctions. Firms targeted by financial sanctions decrease their leverage and increase their cash holding to manage their perceived increase in risk profile.     

Defining, measuring and talking about poverty: the case of Finland

Scholars have always disagreed about the definition and measurement of poverty. This article looks at these issues in the light of Finnish poverty research. The chief target of the methodological criticism is the use of equivalence scales or units of individual consumption in the comparison of individual people's disposable income. The main argument against this method is that it tends to be based on the implicit assumption that "people with low incomes need less money". Another major concern is to demonstrate the key significance of the empirical definition of poverty. Different methods of calculation single out very different groups of poor people Furthermore, part of the poor people are excluded from all conventional definitions.     

The asymmetric impact of the pandemic crisis on interest rates on public debt in the Eurozone

The outbreak of Covid-19 has played the role of a ‘game changer’ in the way countries of the Eurozone have faced the economic consequences of the pandemic crisis. This paper investigates what has happened to the interest rates of the sovereign bond in selected countries of the Eurozone during 2020. While the pandemic crisis can be interpreted as a symmetric shock, we found some important asymmetric consequences both in the sovereign bond market and the credit default swap market. Even though the European Central Bank (ECB) has played a fundamental role in easening tensions, especially with the announce of the Pandemic Emergency Purchase Programme (PEPP), countries with a higher pre-Covid level of the debt-to-GDP ratio have been found to undergo a significant jump in interest rates and a greater perceived risks of default. Important policies implications emerge in relation to the future role of the ECB.     

A panel study to examine the impact of multidimensional poverty on Korean adolescents' health

The study aims to explore the changes in adolescents' health during this significant transition from childhood to adulthood, and examines the impact of multidimensional poverty on their health. The study used panel data drawn from Seoul Child Panel Study, from 8th to 11th grade, and analysed the 908 adolescents using hierarchical linear modelling. Having consistent poverty, single parents and food insufficiency were significant predictors of physical and mental health problems, and these findings varied significantly by specific grade level. Implications for policies and practice to promote the health of adolescents in multidimensional poverty are identified.     

Disability poverty and ageing in regional Australia: The impact of disability income reforms for indigenous Australians

Australian disability policy has undergone considerable reform since the early 2000s. While recent research and scholarship has largely focused on the new National Disability Insurance Scheme, there is a dearth of research that examines the impact of reform to the Disability Support Pension, and even less so the effects on Indigenous Australians living with disability. This is surprising as a higher proportion of Indigenous Australians live with disability than the non‐Indigenous population. This article pays particular attention to the experiences of Aboriginal Australians who have acquired a disability after extensive years of working (25–40 years), yet are still of workforce age (less than 65 years of age). Because of tightened eligibility criteria for the Disability Support Pension, people in this group are placed onto the lower paid Newstart Allowance (general unemployment benefit). The article illustrates the high levels of poverty that Aboriginal Australians with disabilities experience daily, and the ongoing costs they incur in managing Newstart conditionality to maintain continued access to the general unemployment benefit.     

The impact of racially disproportionate outcomes on public policy: The U.S. Senate and the death penalty

The implementation of particular public policies may infringe upon important civil rights of citizens. This article explores the relationship between the racially disproportionate effects of the death penalty and a subsequent attempt in the U.S. Senate to provide racial justice protection. While the most important explanatory factors of a senator's behavior are their political philosophy and the state homicide rate the findings also indicate that racially disproportionate outcomes under capital punishment in the senator's state are negatively associated with the probability that the senator will support racial justice protection. We discuss the importance of these findings.     

Trade and poverty nexus: A case study of Sri Lanka

The link between trade liberalisation and poverty has become one of the most debated topics in recent years. There is a growing body of empirical literature on this topic and many studies provide mixed results. In this study, Sri Lanka is used as a detailed case study and a computable general equilibrium (CGE) approach is used as an analytical framework to examine the trade-poverty nexus. The results suggest that, liberalisation of the manufacturing industries is more pro-poor than that of the agricultural industries. Overall, this study suggests that trade reforms may widen the income gap between the rich and the poor creating uneven gains across different household groups in Sri Lanka. While short-term complementary policies are needed to compensate vulnerable income groups, long-term policies are needed to make gains from trade liberalisation more inclusive and equitable to maintain economic and political stability in Sri Lanka.