Social Security Privatization Research Articles

Public Sector Employees’ Arrangement and Plans Towards Retirement in Ghana

As a saying goes, if one fails to plan, that individual plans to fail. This well-known saying holds true relative to retirement that formal sector employees experience at a point in their life time. It is also a truism that effective and efficient retirement planning by employees is contingent on the information about retirement they receive. Although myriad of studies have been conducted on retirement experiences of formal sector employees, the specific activities that employees do for their retirement had attracted less research attention. The study aimed to close the gap identified, which is quintessential for the information, education and action of employees, employers, psychologists and counsellors. The study focused on employees of the Ghana Health Service (GHS) and Ghana Education Service (GES) in two municipalities. Stratified and simple random sampling procedures were adopted to select the employees to participate in the study. To garner the requisite data to achieve the study objectives, a questionnaire was designed, pre-tested and used. The data gathered were analysed using descriptive statistical tools. It emerged from the study that the employees’ principal sources of information on retirement are the media, private insurance companies, Social Security and National Insurance Trust (SSNIT), friends and relatives. It also emanated from the study that most of the employees were doing the following for their retirement: investment in shares, bonds, treasury bills and insurance policies; savings and standing orders. Stakeholders of the two services need to do more to help their employees to prepare well for an enhanced livelihood during retirement.

Social Security Privatization: Zombies Never Die

Institutional economists spend a great deal of time pointing out the unexplored problems existing within mainstream economic proposals. The privatization of Social Security (SS) is one such proposal and, like the locusts of old, this proposal will once again come to plague our political discourse. In a world facing existential threats from war, climate change, pandemic, and famine it is inevitable the right wing of the U.S. political system will once again turn to issues they really see as important: how to increase profit margins for international finance. Social Security privatization is a complex solution to a relatively minor problem. This essay will summarize the general shape of privatization schemes and explore two major problems they have as proposed. The essay will then offer a differing way to organize privatization that may call into question how well privatization would work.

Fon Biriktirim Sistemi ve Yaşlanma: Ampirik Bir İnceleme

The social security reform wave in the 1990s and the early 2000s responded to the rising deficits of the public PAYG (pay-as-you-go) systems. Privatisation of social security was regarded as a cure for the population ageing problem believed to lie under the situation. Some academics were sceptic and argued that privatisation was not a remedy to the ageing problem. This paper empirically investigates the validity of this claim. Using a simple market equilibrium condition, the implications of the ageing population for saving rates are examined for more than 150 countries for the 2000 to 2100 period. It is found that ageing may cause unsustainability in funded pension systems. The impact is especially profound for southern and eastern European countries, Korea, and Japan.

공공 및 민간 긴급지원사업의 역할과 과제

The study analyzed the characteristics of the public and private emergency welfare support through a literature review. As a result, the public sector contributes numerous roles, such as discovering people in crisis, replenishing the blind spots, and networking people in need with private organizations’s support. The private sector plays the role of being the final solution of the blind spots of public assistance, supplementing social safety nets, and complementing the public sector. Furthermore, the study found several problems in the public and private sectors: first, the overlapping of public emergency support recipients with other public policy recipients due to the ambiguous boundary; second, the insufficiency of income security for low-income people despite both public and private support. Lastly, the lack of linkage and cooperation between private support and public social security system. Based on the findings, the study suggests policy implications related to the emergency welfare programs.

Fear and Loathing of Wall Street: Political Liberalism, Uncertainty, and Threat Management in a Dangerous Economic World

Conservatives perceive the world as a more dangerous and threatening place than liberals, which explains conservatives’ more cautious social behaviors and their greater support for policies (e.g., anti‐immigration and harsher punitive measures) that aim to manage and reduce perceived threats and uncertainties. However, past research operationalized the “world” as a place replete with social and physical threats (e.g., street crimes and terrorism). Less attention has been given to the economic world, which is equally characterized by threatening events (e.g., corporate crimes, stock market crashes). In four studies, we examined whether differences in appraisal of the economic world explain ideological differences in stock market participation and neoliberal economic policy preferences. The findings reveal that liberals perceive the stock market as a more dangerous and riskier place than conservatives. This asymmetry explains liberals’ cautious investment behaviors, their greater support for regulation of the stock market, and their greater opposition to privatization of Social Security. We argue that liberals’ greater support for these policies serves to protect investors and the general public from the perceived harms of the economic world. Our findings suggest that the psychological processes underlying threat management and uncertainty reduction are similar for conservatives and liberals, but these processes are context dependent.

Efficiency Versus Insurance: Capital Income Taxation and Privatizing Social Security

We study the interactions between capital income tax and social security privatization in the context of rising longevity. In an economy with idiosyncratic income shocks, redistributive defined benefit social security provides some insurance against income uncertainty. This insurance comes at the expense of efficiency loss due to labor supply distortions. The existing view in the literature states that reducing this distortion by introducing (partially funded) defined contribution social security would reduce welfare because the loss of insurance and the transitory fiscal gap dominate the efficiency gains. However, prior research financed the transitory costs of the reform by taxing consumption. We show that in the context of longevity, capital income taxation provides a superior alternative: welfare gains are sufficient to outweigh the loss of insurance and transitory fiscal gap. We provide explanations for a mechanism behind this result and we reconcile our results with the earlier literature.

РОЗВИТОК СОЦІАЛЬНОЇ ЕКОНОМІКИ В ПОЛЬЩІ: ДОСВІД ДЛЯ УКРАЇНИ

The development of the social economy contributes to the well-being of the population, which is one of the main tasks of any state. The existence of certain social problems in Ukraine requires an analysis of foreign practices of implementing social goals to increase living standards. In the context of European integration aspirations, such a state for Ukraine is the neighboring Poland. To address these issues, the positive experience of social economy development and employment in Poland is analyzed and the possibilities of its application in Ukraine are outlined. The practice of social economy in Poland is considered, Ukraine and Poland are compared on particular social indicators (number of social security institutions, unemployment rate, employment rate, average monthly wage, self-employment level), the directions of social development in Poland are outlined with emphasis on their possible application in Ukraine. Taxonomic methods for determining the social development of Poland and changes in the labor market of both countries are considered. The main determinants of the Polish model of social economy are highlighted: stable economic development, which contributes to raising living standards; low unemployment; developed social infrastructure; increase in average wages; developed private social security sector; labor market stability and its ability to adapt to new challenges. A number of problematic issues in the development of the social economy in Ukraine are highlighted, in particular, the low level of wages compared to neighboring European countries; high unemployment; low level of self-employment; high level of shadow economy. Based on the analysis of the positive experience of Poland, a number of possible directions of social economy development in Ukraine are outlined.

Orhanizatsiia sotsialnoho zabezpechennia robotodavtsem

The article deals with the analysis of general trends in the labour market, which are characterized by a rapid increase in unemployment in Ukraine. The main reasons for such negative trends are outlined and the main changes in employment in 2020–2021 are highlighted. The definition of a socially responsible employer is given and its content is revealed. It was found that a socially responsible employer is not so much an economic entity that meets the requirements of applicable law, as an enterprise that voluntarily implements a number of other social measures targeted at the employee and necessary for the latter, based on the specifics of their employment. Practical methods of application of the system of rational bonuses and stimulation of employees to motivated performance of official duties are given. Some changes are proposed, which should be made in the Labour Code of Ukraine and establish the limits of liability of the employer for failure to comply with the labour (collective) agreement on social security of employees. Emphasis is placed on the need for a larger-scale information campaign aimed at refusing employees to take up their duties without proper contractual arrangements, as by agreeing to informal employment, the employee is in fact vulnerable. There are three main groups of responsibilities of the employer for social security: preventive, logistical, monitoring (evaluation). A separate block of questions is devoted to the review of the organization of social security for workers with special needs. The general idea and philosophy of creating initially socially oriented business is more widely disclosed. The role of business entities in the organization of social entrepreneurship as a promising component of private social security is analysed. Examples of business activities in this area are given. Emphasis is placed on the mandatory participation of the employer in the organization of the investigation of an accident or occupational disease at work as a prerequisite for the employee to receive certain types of social security, including social rehabilitation.

Introduction: Social protection for digital platform workers in Europe

AbstractThis special issue of the International Social Security Review addresses the important topic of social protection for digital platform workers in Europe. The special issue highlights the risk that social protection systems may be largely undermined by a decline in social solidarity in favour of individualism, the partial or full privatization of social security, and a reduction in protection levels, all as a result of the emergence of digital platforms and the support they receive from legislators in most countries.

The Privatization of Social Security in Chile 1980-Present

The following paper is an analysis of Chile’s pension reform from 1980 to today, in 2019. In this paper, the authors analyze the structure, implementation, and transition process of the reform, while also highlighting strengths and identifying weaknesses that can be improved upon. This information can be used to assist Chile in its current pension reform, as well as be used as a potential model for future countries looking to overhaul their pension system. Keywords. Privatization, Social security, Chile. JEL. F21, F68, O53, K23 .

New Economic Instruments of State Regulation of Private Savings, Social Security and Pension Support

In the conditions of market infrastructure for the transformation of medical services, there is an objective need to build effective insurance protection of the population against risks associated with loss of health. Using a systematic approach, the problem of combining compulsory and voluntary health insurance is investigated, a theoretical conceptualization of the concept of “financial mechanism of public health insurance” is carried out. The solution of the above problems will contribute to the development of an adequate approach to the formation and use of funds of insurance funds for the effective functioning of the health insurance system. system. Also, the development of a more rational structure of public health will meet the needs of protecting property interests related to loss / deterioration of health.

Social Security reform in the presence of informality

As populations age, countries across the globe are dealing with the issue of how to fund retirement consumption for their workers. The design of Social Security programs is more difficult when the country also exhibits an informal economy where workers avoid the taxation of the government and are not entitled to its benefits. In this paper, I study the example of Chile–a country that transitioned from a pay-as-you-go Social Security system to a system of private, individual retirement accounts in 1981 and also exhibits a significant informal sector–in order to quantify the transitional welfare impact of Social Security privatization when workers have the option to evade the public system through informality. I construct an OLG model which allows households to split working time between a taxed formal sector, an untaxed informal sector, and home production. I find large long-run welfare gains of roughly 10 and 15 percent for low and high-productivity workers, respectively. However, these gains come at the expense of losses for two groups: low-productivity workers who are retired at the time of the reform and high-productivity workers within 5 years of retirement at the time of the reform. The presence of informality leads to conflicting mechanisms: (1) the elasticity channel decreases welfare gains from reform: including informality as imperfectly substitutable with formality in utility decreases labor supply elasticity and renders the pay-as-you-go payroll tax less distortionary, and (2) the market wage channel increases welfare gains from reform: the privatization of the Social Security system causes wage growth which informal workers can receive without facing the distortions of any remaining taxation in the formal sector. Quantitative results indicate the elasticity channel is stronger in the case of Chile, and the inclusion of informality decreases the long-run welfare gains from privatizing Social Security.

Privatization of social security in Mexico: A study of human rights’ infringement

El articulo basa su estudio en el metodo cientifico. El estudio utiliza la observacion, experimentacion y comprobacion para la eficacia del metodo cientifico. La hipotesis a desarrollar es ?con la privatizacion de las pensiones, se vulneran derechos humanos? En este sentido, se arriba a que la privatizacion de pensiones en Mexico es un riesgo para los trabajadores de este pais, existe vulneracion de sus derechos humanos para lograr una pension al final de sus dias laborales. El Estado Mexicano a finales de los noventas, en especifico 1997, adopto el sistema de capitalizacion individual para el tema de pensiones, esto es, que el recurso destinado a las pensiones lo administra la iniciativa privada mediante Administradoras de Fondos para el Retiro. Sin embargo, al tratar de aumentar el ahorro para el retiro en beneficio de los trabajadores, los recursos se invierten a traves de Sociedades de Inversion Especializadas en Fondos de Retiro. En consecuencia, es peligroso que la iniciativa privada administre en su totalidad ese fondo, pues en 2018 se publico “Cuatro afores invierten en el nuevo aeropuerto” (Albarran, 2018) y meses despues se cancelo el proyecto, pero al parecer de nueva cuenta dicho proyecto podria iniciarse. Por consiguiente, dejar todos los recursos de las pensiones en manos de instituciones financieras es un riesgo para los trabajadores. Se debe recordar que a partir de la crisis financiera mundial de 2008, se genero perdidas (minusvalias para la Ley de los Sistemas de Ahorro para el Retiro) en el Sistema de Ahorro para el Retiro.

Resuscitating Private Social Security Accounts: Countering Inequality With Panic and Prevarication.

This article, originally published in Dollars & Sense: Real World Economics , is being reprinted in New Solutions to bring attention to efforts to privatize, dismantle, and fail to protect and expand the U.S. Social Security system. Social Security is an essential element for protecting the health, safety, and well-being of retired U.S. workers and their family members. This article explains attempts to weaken the system and efforts that can be made to sustain the system. The author asks and responds to the question, “Why then would anyone swap a highly successful Social Security system that provides life insurance as well as disability and retirement benefits for private retirement accounts?”

Birth prevalence of congenital anomalies in the City of Buenos Aires, Argentina, according to socioeconomic level.

The goal of our study is to describe the prevalence of congenital anomalies (CA) in hospitals of the City of Buenos Aires, Argentina, according to two proxy variables of the socioeconomic level: health subsector, public (PUB) versus private/social security (PRI), and geographical location, northern (N) versus southern (S). The source of data was the National Network of Congenital Anomalies of Argentina (RENAC) (period 2010-2016). From a total of 228,208 births, 4872 newborns with CA were detected (2.14%). The prevalence in PRI-N, PUB-N, PRI-S, and PUB-S hospitals were 1.59%, 1.91%, 2.20%, and 2.43%, respectively. Prevalence of neural tube defects, abdominal wall defects, and oral clefts was significantly higher in PUB than in PRI hospitals. Prevalence of critical heart defects was significantly lower in PUB-N and in PRI-S hospitals. Prevalence of anencephaly, encephalocele, hydrocephalus, microcephaly, gastroschisis, cleft lip and palate, ductus arteriosus, and bilateral renal agenesis was higher in PUB hospitals, both N and S, as well as microphthalmia/anophthalmia and ambiguous genitalia, spina bifida, anotia/microtia, postaxial polydactyly, and diaphragmatic hernia had higher prevalences in PUB-S hospitals. Omphalocele was more frequent in PUB-N hospitals. Results suggest that vulnerable populations in the public and southern subsectors of the city still require a greater support to reinforce resources and strategies that lead to greater equity in access to health.

The economic effects of private social security accounts

Since the 1980s, over 30 countries have implemented various kinds of personal social security accounts. Most counties have adopted them as a part of their social security systems, to also continue to fund their public pay-as-you-go system. This paper analyses the effects of adopting private accounts, as well as the percentage of income paid into private accounts, on GDP per capita growth. Global panel-data regressions over time are used, as well as sample splits for developing countries and separately for Latin America, where many countries adopted some form of private accounts following Chile's ground-breaking example of a complete switch from public to private social security system. The paper estimates statistically significant effects of privatising parts or all of social security on countries' GDP per capita growth. Private accounts also benefit stock market growth and enrolment rates in secondary and higher education, as well as in reducing government expenditures and national debt.

The economic effects of private social security accounts

Since the 1980s, over 30 countries have implemented various kinds of personal social security accounts. Most counties have adopted them as a part of their social security systems, to also continue to fund their public pay-as-you-go system. This paper analyses the effects of adopting private accounts, as well as the percentage of income paid into private accounts, on GDP per capita growth. Global panel-data regressions over time are used, as well as sample splits for developing countries and separately for Latin America, where many countries adopted some form of private accounts following Chile's ground-breaking example of a complete switch from public to private social security system. The paper estimates statistically significant effects of privatising parts or all of social security on countries' GDP per capita growth. Private accounts also benefit stock market growth and enrolment rates in secondary and higher education, as well as in reducing government expenditures and national debt.

ПРЕПОДАВАТЕЛИ ВУЗОВ СЛОВАКИИ КАК ОСОБАЯ КАТЕГОРИЯ РАБОТНИКОВ ГОСУДАРСТВЕННОГО УПРАВЛЕНИЯ: СОЦИАЛЬНАЯ СТАБИЛЬНОСТЬ ЗАНЯТОСТИ?

The main role of public administration is to administrate public affairs. All of the functions in this field are realised by employees carrying out the dependent work. Public administration, as an employer, has to fulfil the demand of stability and attractiveness of public sector employment. For the purposes of the study our attention focuses on a large group of public employees, namely teachers in public universities in Slovakia. Legislative regulation of the employment of university teachers is alarming. The paper analyses Slovak legislation of time-terminated employment contracts with university teachers and its unlimited repetition. The authors, supported by settled case law of the Court of Justice of the EU, assess the legislation in substance and critically, but also point to its potential impact on the private life, social security and health of these employees, i.e. psychological aspects. Descriptive analysis aimed at assessing quantitative changes in individual groups of university teachers according to the highest level of qualification was used to express trends in the development of quantitative indicators characterizing selected aspects of employment of university teachers (assistant, assistant professor, associate professor, professor). Legislation on the employment of university teachers under the conditions of the Slovak Republic raises considerations of unequal treatment of two categories of university teachers (associate professors and professors) when compared to the category of assistants and assistant professors. For this reason, an analysis of the age structure of university teachers according to the highest qualifi cations was carried out. The analyses were carried out using data from the Center of Scientific and Technical Information of the Slovak Republic (CVTI SR) and the Register of University Employees maintained by the Ministry of Education, Science, Research and Sport of the Slovak Republic. The study was conducted for the reference term of 2011–2019. Through our analysis, we have identified a downward trend in the number of university teachers qualified as assistant professors in the 40–49 age category, and this change does not reflect the increase in the number of associate professors in the same age category. The group of university teachers in this age category then becomes vulnerable/disadvantaged in the labor market, which has serious social consequences for the employees themselves and provides a picture of the university environment in terms of legislation.

The Macroeconomic Effects of Longevity Risk Under Private and Public Insurance and Asymmetric Information

We study the impact of a fully-funded social security system in an economy with heterogeneous consumers. The unobservability of individual health conditions leads to adverse selection in the private annuity market. Introducing social security—which is immune to adverse selection—affects capital accumulation and individual welfare depending on its size and on the pension benefit rule that is adopted. If this rule incorporates some implicit or explicit redistribution from healthy to unhealthy individuals then the latter types are better off as a result of the pension system. In the absence of redistribution the public pension system makes everybody worse off in the long run. Though attractive to distant generations, privatization of social security is not generally Pareto improving to all generations.

The Economic Effects of Private Social Security Accounts

Since the 1980s, over 30 countries have implemented various kinds of personal social security accounts. Most counties have adopted them as a part of their social security systems, to also continue to fund their public pay-as-you-go system. This paper analyzes the effects of adopting private accounts, as well as the percentage of income paid into private accounts, on GDP per capita growth. Global panel-data regressions over time are used, as well as sample splits for developing countries and Latin America, where many countries adopted some form of private account following Chile’s ground-breaking example of a complete switch from public to private social security system. The paper estimates statistically significant effects of privatizing parts or all of social security on countries’ GDP per capita growth. They also benefit stock market growth and enrollment rates in secondary and higher education, as well as in reducing government expenditures and national debt.