Income Protection Research Articles

Pension Programs Around the World: New Comparative Global Policy Data

Income protection during old age is a universally recognized human right. Are nations fulfilling their responsibility for income support for older adults? Using a new global dataset on social protection conceptualized and built by two of the authors, this paper examines whether countries have legislated for national pension systems, and the characteristics and adequacy of those systems.

Minimum Income Protection in Flux

Minimum Income Protection in Flux

Between Poor Relief and Human Capital Investments – Paradoxes in Hybrid Social Assistance

AbstractConditional cash transfers (CCTs) are often being promoted for their simultaneous advantages of short‐term income protection and long‐term human capital investments.Yet, existing evaluations have largely failed to test the underlying programme theory, and few empirical case studies have explored inherent contradictions and ambiguous consequences of this hybrid approach. To further understand the programmes' social policy implications, this study identifies and analyzes such ambiguities and paradoxical consequences in the case of Uruguay's CCT‐programme, Asignaciones Familiares (AFAM). Drawing on qualitative data from interviews with beneficiaries and members of the commission who designed the programme, this study reveals major paradoxes in AFAM's design and implementation caused by various endogenous factors. Relevant to social policy in general, and CCT‐evaluations in particular, findings also indicate that the hybrid social assistance approach may have perverse effects on the programme's twin objectives.

Inclusive Unions in a Dualised Labour Market? The Challenge of Organising Labour Market Policy and Social Protection for Labour Market Outsiders

Dynamics of labour market dualisation have affected most Western European countries over the last two decades and trade unions have been often seen as conservative institutions protecting the interests of their core constituencies and as such contributing to labour market dualisation. However, empirical evidence from Italy shows that unions’ stance towards atypical workers has been more inclusive than the literature expected, despite the conditions for pro-insider policies being firmly in place, and unions have emerged as important actors in the organisation of social protection for labour market outsiders. By analysing unions’ strategies towards temporary agency workers in Italy through a disaggregated approach (i.e. focussing separately on salary and job protection; active labour market policies; and income protection), I reconcile the empirical observations that conflict with the theoretical expectations. I argue that unions have indeed put in place inclusive, yet selective, policies towards atypical workers and that unions’ identity is a central explanatory variable to understand the puzzling coexistence of a dualised labour market and (selectively) inclusive unions. Through a disaggregated identity-bound analysis of unions’ strategies, I shed new light on the complex relationship between labour market dualisation and the dualisation of social protection. In particular, findings suggest that paradoxically unions’ strategies to counteract labour market dualisation may be furthering the insider-outsider divide in terms of social protection. I also suggest that a clearer analytical distinction between labour market dualisation and welfare dualisation is needed in future research and that the understanding of unions’ strategies towards marginal workers would greatly benefit from a systematic disaggregated analysis of unions’ agency.

THE MINIMUM INCOME SCHEME REFORM IN LITHUANIA

The article reviews the current social assistance scheme in Lithuania and its recent reform. The aim of this paper is to evaluate the scheme in three dimensions: coverage of poor people, adequacy of benefit amounts, and social assistance reconciliation with work incentives. The analysis of the minimum income protection reform is based mainly on the data from Survey of Income and Living Conditions and Administrative Data from the Ministry of Social Security and Labour. The paper discovers the changing role of the minimum income scheme in the context of an economic cycle, its targeting to low-income strata of the population and an adequate amount at least for families with children. However, the growing incentives of local authorities to reallocate funds envisaged for social assistance to other needs can erode the scheme. The article ends with several recommendations to policy makers.

Revealing the Willingness to Pay for Income Insurance in Agriculture

A stable agricultural income is often regarded as a way to achieve a better environmental performance in this sector. However, conventional income stabilization tools have been showing recently signs of exhaustion. Under this critical juncture, EU institutions have encouraged the expansion of agricultural insurance. With different degrees of public support, insurance systems against several risks have been successfully developed across the EU and have adopted increasingly comprehensive forms. Eventually, EU institutions have started to assess the development of a comprehensive income insurance framework. Income insurance covers a wider variety of risks and has higher costs than conventional single risk or combined insurance. This demands an in depth knowledge of farmers’ Willingness To Pay (WTP) for this product. The following pages present a methodology that calculates the WTP for different degrees of income protection using a Revealed Preferences Model and the Certainty Equivalent theory. The methodology is applied in a drought prone area in southeastern Spain. Results show that WTP for income insurance in this area is higher than observed insurance premiums. This may play in favor of the development of sustainable income insurance systems, though additional evidence is required.

How does precarious employment relate to health and job satisfaction in Europe? A gender and cross-national perspective

Background Precarious employment (PE) is becoming an increasingly important social determinant of health. PE refers to a multidimensional concept grasping into the degrading of employment conditions and relations. It encompasses the following dimensions: employment stability, income, rights and social protection, training, control over worktime, collective bargaining and interpersonal power relations. Given that female workers fall in the intersection of two unequal power relationships, employment and patriarchal gender relationships, PE …

The causes and health effects of the Great Recession: from neoliberalism to ‘healthy de-growth’

In 2008, the world experienced the worst financial crisis since the Great Depression. The crisis is often described in relation to its proximal risk factors such as the proliferation of risky loans and mortgage-based securities, but the root causes of the Great Recession include distal risk factors such as indiscriminate capital flow, excessive financial deregulation, and high concentration of wealth in the top distribution. Ultimately, the crisis is a byproduct of neoliberal policies and the ‘self-correcting market’ ideology that guided national and global macroeconomic reforms since the 1970s. Evidence indicates that the Great Recession led to increases in unemployment and suicides, especially in Europe and in the US. Estimates based on the effects of previous economic downturns suggest that the crisis produced negative health and nutritional outcomes in developing countries. Data, however, also show that recessions can be characterized by increases in life expectancy at birth. These favorable trends seem associated with policy regimes favoring a more egalitarian distribution of income and stronger social protections that can decouple the link between unemployment and suicides during crises (‘healthy de-growth’.). New rules and regulations at the national and global level are needed to prevent future financial crises. The crisis also provides an opportunity to challenge neoliberalism, the ideology of the ‘self-correcting market’ and envision a new model of economic development where GDP growth is longer the main national policy priority. Governments can achieve a regime of ‘healthy de-growth’ if they step in with appropriate policy interventions toward a more egalitarian distribution of income and stronger social protections.

Global financial crisis and perceptions of job insecurity: The China case

Studies on perception of job insecurity (PJI) in relation to financial crises and on China have been extremely scant. Regression analysis of Chinese household survey (N=6681) was performed in order to assess the relationship between PJI and the 2008 global financial crisis. To address the possible endogeneity between PJI and the crisis indicator, we use relevant instrumental variables and compute the results using two stage least square (2SLS). We found that PJI in China were significantly correlated with the 2008 global financial crisis despite its high economic growth and frequent government interventions. Income and wealth reductions emanating from the crisis were also significantly correlated with PJI. Government's expansionary policies appear to be effective in ameliorating the workers’ PJI. Social developments such as provisions of social security and income protection measures could also be used to reduce Chinese workers’ job insecurity perception.

Social and Psychological Barriers to Private Retirement Savings in Hong Kong

Using a phone survey conducted among Hong Kong workers, we examined the association of institutional, social, and psychological factors with engagement in both private retirement savings and the total amount of savings. Alarmingly, this study demonstrates that approximately 42% of Hong Kong workers do not save privately for their retirement. We found that age, education, number of children, support from spouse and friends, social regulation, perceived financial knowledge, and financial management capacity are associated with engagement in private retirement savings. Among those who saved, age, education, perceived financial knowledge, and financial management capacity are related to the amount of savings. Measures that could increase the social support for retirement savings as well as enhance their financial knowledge and management ability should be developed and implemented so that more workers engage in private retirement savings. A promising policy option for the Hong Kong government is to offer a tax incentive to promote additional savings for old-age income protection.

Patterns of institutional change in minimum income protection in Sweden and Germany

Germany is generally regarded as a case of qualitative “change” in minimum income protection (MIP) schemes, while Sweden is perceived as one of institutional “inertia”. This paper seeks to qualify this view by embedding developments in MIP in wider policy and governance trends. Empirically, it is based on document analysis and qualitative expert interviews in the two countries. Theoretically, the paper applies recent institutional approaches that address patterns of change in more complex ways. In Sweden, an exclusive focus on formal continuity regarding social assistance would disguise its change in function from temporary security system of last resort into one that permanently provides income protection when neighboring policy fields, unemployment and sickness insurance, are downsized. Conversely, in Germany a merger of social assistance and unemployment assistance took place. Yet an exclusive focus on the Hartz reforms would downplay the degree of continuity that nevertheless exists in the unemployment insurance.

Understanding convergence and divergence: old and new cleavages in the politics of minimum income schemes in Italy and Poland

Italy and Poland present similarly weak minimum income protection models, yet this results from two different policy trajectories in the last 15 years: both countries actually introduced a minimum income scheme (MIS) between the late 1990s (Italy) and the early 2000s (Poland), but later developments were characterized by policy reversal in the Italian case vis-à-vis institutionalization in Poland. The paper therefore addresses two intertwined puzzles. First, in the light of very different background conditions, which factors help understand the convergent process towards the introduction of MIS? Second, what explains remarkable divergence in the subsequent phase? Challenging previous claims about the limited scope of political competition dynamics in the field of social assistance, due to generally narrow constituencies and limited political mobilization, we contend that political competition dynamics are key factors in order to make sense of both convergent and divergent trajectories in the two diverse phases.

Themed section: Reforming minimum income protection in Europe

Minimum income protection, or social assistance, has been attracting growing interest among comparative welfare state scholars in recent years. Reform of the “last safety net” is also high on the s...

Convergence from below? The reform of minimum income protection in France and the UK

Through a systematic comparison of major reforms to minimum income benefits for people of working age in France and the UK, this paper assesses the scope for cross-national convergence in this growing sector of European welfare states. It shows that while differing institutional legacies have shaped the precise design of the new minimum income systems that have been put in place on each side of the Channel in recent years, there is also evidence of an increasingly common conceptualisation of the function of the last safety net and its articulation with the labour market, despite the two countries' still very different political economies. This suggests the potential across welfare states for convergence “from below” on broader understandings of the role of social security provisions in regulating economic life.

An overview of environmental policies of local government organizations in the Republic of Serbia

Purpose – The purpose of this paper is to identify the structure of local government environmental expenditures by purpose, term and economic type, as well as the sources of their financing. Design/methodology/approach – Research and data analysis were carried out on the basis of relevant sources of data gathered from the publicly available decisions on annual statements of accounts for 2011, published on local governments’ internet pages. Findings – The main domains of expenditures are pollution abatement, waste and wastewater management and protection of biodiversity. The most of expenditure relates to operating expenses, while only a few percent relates to long-term investments. The most of environmental protection expenditures are financed from the local government organization's (LGO) general budget. Practical implications – In the field of environmental protection, the most significant direct responsibility lies with local governments. On the other hand, information on the structure of environmental protection income and expenditures at the local government level is very limited and highly defragmented. The study may represent a starting point for further research in this field. Originality/value – The methodology and the results reported in this research could be used for exploring environmental policy of LGOs in other European countries.

Herders’ willingness to accept versus the public sector’s willingness to pay for grassland restoration in the Xilingol League of Inner Mongolia, China

This paper describes two payment for ecosystem services (PES) programs to restore grassland ecosystems in Inner Mongolia in Northern China. A key challenge is to sustain the livelihood of local residents, who earn most of their income from traditional animal husbandry. We surveyed 240 herders and 36 government representatives in 2 years. We used contingent valuation and logistic regression to analyze the resulting data. Since the PES implementation, income from cultivation and animal grazing decreased, whereas income from compensation and off-farm activities increased. The herders preferred an annual payment of 625 Chinese yuan (CNY ) ha−1 for participating in conservation activities, but the government prefers to provide 528 CNY ha−1, resulting in an annual gap of 97 CNY ha−1. The current too-low payments may lead some herders to expand their grazing into restricted grassland or increase their number of animals, particularly if either payment program ends. The herders were most concerned about their economic loss, whereas the government considered both grassland restoration and income protection to be important. To create an improved and sustainable PES scheme, we recommend solutions that will let the herders sustain their livelihood while conserving the grasslands. Our findings will help to establish more effective PES schemes for the grasslands of Inner Mongolia and similar regions.

The Great Wake-Up Call? Social Citizenship and Minimum Income Provisions in Europe in Times of Crisis

AbstractWhen the 2008 crisis hit, social safety nets in Europe were not in the best of shape. This article examines what, if anything, governments did to adjust minimum income protection after two decades of relative neglect. In view of the hardship brought on by the crisis, this question is of importance in itself. In addition, there is a long-standing interest in the role crises play in re-shaping policies, possibly in a radical way. Building on purpose-collected data for twenty-four European countries, this article shows that many countries introduced supportive measures during the first years of the crisis, particularly in the form of additional benefit increases and more generous child benefits. Behavioural requirements imposed on minimum income recipients were not relaxed but in some countries activation efforts were intensified. Although the evidence shows that the crisis did trigger a response, there is little evidence for a structural change of course towards more adequate safety nets.

Financial and employment impacts of serious injury: A qualitative study

ObjectivesTo explore the financial and employment impacts following serious injury. DesignSemi-structured telephone administered qualitative interviews with purposive sampling and thematic qualitative analysis.Participants: 118 patients (18–81 years) registered by the Victorian State Trauma Registry or Victorian Orthopaedic Trauma Outcomes Registry 12–24 months post-injury. ResultsKey findings of the study were that although out-of-pocket treatment costs were generally low, financial hardship was prevalent after hospitalisation for serious injury, and was predominantly experienced by working age patients due to prolonged absences from paid employment. Where participants were financially pressured prior to injury, injury further exacerbated these financial concerns. Reliance on savings and loans and the need to budget carefully to limit financial burden were discussed. Financial implications of loss of income were generally less for those covered by compensation schemes, with non-compensable participants requiring welfare payments due to an inability to earn an income. Most participants reported that the injury had a negative impact on work. Loss of earnings payments from injury compensation schemes and income protection policies, supportive employers, and return to work programs were perceived as key factors in reducing the financial burden of injured participants. Employer-related barriers to return to work included the employer not listening to the needs of the injured participant, not understanding their physical limitations, and placing unrealistic expectations on the injured person. While the financial benefits of compensation schemes were acknowledged, issues accessing entitlements and delays in receiving benefits were commonly reported by participants, suggesting that improvements in scheme processes could have substantial benefits for injured patients. ConclusionsSeriously injured patients commonly experienced substantial financial and work-related impacts of injury. Participants of working age who were unemployed prior to injury, did not have extensive leave accrual at their pre-injury employment, and those not covered by injury compensation schemes or income protection insurance clearly represent participants “at risk” for substantial financial hardship post-injury. Early identification of these patients, and improved provision of information about financial support services, budgeting and work retraining could assist in alleviating financial stress after injury

Personal consequences of work‐related physical discomfort: an exploratory study

BackgroundWork‐related physical discomfort has been reported in Australian optometrists. The purpose of this paper is to explore the personal consequences of work‐related discomfort.MethodsForty‐seven optometrists with self‐reported work‐related discomfort participated in a 30‐minute telephone or face‐to‐face interview related to ergonomics and physical comfort. Self‐employed, employee, locum and retired optometrists participated. Four avenues were investigated; namely, description of discomfort, non‐work contributing factors, whether the participant has ever stopped work due to discomfort, and the treatments accessed to alleviate discomfort. These data were subject to qualitative and quantitative analyses.ResultsReported discomfort ranged from mild to severe. Eight participants (17 per cent) ascribed their discomfort entirely to work and seven (15 per cent) cited non‐work factors as the cause. Many participants (32, 68 per cent) reported that non‐work factors, for example, sport and driving, aggravated existing work‐related discomfort and for some, their discomfort impacted on home and leisure activities. There were 15 participants (32 per cent), who have stopped work because of discomfort, including two who have ceased working as an optometrist and two who now work reduced hours. The majority (32) continue to work despite discomfort. Many participants (31, 66 per cent) seek treatment to alleviate discomfort, with seven participants (15 per cent) reporting that they receive multiple therapies per week. Work‐related discomfort was generally viewed as a personal issue, with most participants accessing treatment in their own time (27, 57 per cent) and funding it personally or with private health insurance. Only four participants have received funding through workers’ compensation or income protection insurance.ConclusionsWork‐related discomfort has significant financial and personal costs for some Australian optometrists. These qualitative data can be used to develop quantitative tools for assessing the impact of discomfort on quality of life for optometrists and their families. The results also highlight the need for preventative action to reduce work‐related discomfort within the optometric profession.

The impact of psychosocial factors on claims outcomes in the group income protection market: findings from a prospective pilot study

Research suggests that psychosocial factors predict recovery better than biomedical factors alone in the normal population. However, no studies have been carried out in the disability income insurance setting, where the availability of financial cover is usually perceived as the main detractor of recovery and return to work.Swiss Re's clinical claims team in collaboration with the Research & Development team, conducted a 3 year prospective study to evaluate the role of psychosocial factors in recovery within a group income protection sample. Predictors of return to work were: beliefs about recovery and work, work ethic, coping, and self-efficacy. Interestingly, medical diagnosis alone and treatment did not predict recovery and return to work in this sample.Our objective was to conduct research to gain an understanding of psychosocial predictors in the insurance setting, and additionally to develop specific claims management strategies for our claims assessors to manage their claims more effectively through exploring the psychosocial barriers influencing on a claimant's absence, and providing adequate support at the right time, in a cost-effective manner.