scholarly journals Interactions in Public Policies: Spousal Responses and Program Spillovers of Welfare Reforms

2021 ◽  
Author(s):  
Julian Vedeler Johnsen ◽  
Kjell Vaage ◽  
Alexander Willén

Abstract This paper exploits the introduction of an early retirement reform in Norway to provide new evidence on interactions in public policies across programs and household members. The analysis generates four results. First, the reform decreased the employment of the directly affected individuals. Second, the introduction of the early retirement option caused program substitution away from alternative welfare programs. Third, it reduced employment among spouses of directly affected individuals. Finally, the reduction in spousal employment was driven by take-up of disability insurance. These results demonstrate that interactions in public policies can have a substantial impact on the effect of welfare reforms.

2018 ◽  
Vol 108 ◽  
pp. 388-391 ◽  
Author(s):  
Sarah Bana ◽  
Kelly Bedard ◽  
Maya Rossin-Slater

We use novel administrative data to study trends and disparities in usage of California's first-in-the-nation paid family leave (PFL) program. We show that take-up for both bonding with a new child and caring for an ill family member increased over 2005-2014. Most women combine PFL with maternity leave from the State Disability Insurance system, resulting in leaves longer than 6 weeks. Most men take less than the full 6 weeks of PFL. Individuals in the lowest earnings quartile and in small firms are the least likely to take leave. There are important differences in take-up across industries, especially for men.


2004 ◽  
Vol 3 (3) ◽  
pp. 291-299 ◽  
Author(s):  
Hye Kyung Lee

This paper explicates the welfare reforms executed in Korea after the abrupt financial meltdown in November 1997, and asks whether the same line of reforms will continue further into the twenty-first century Korea. The DJ government's post-crisis policy choice was to persue an expansion and consolidation of the social welfare system based upon the principle of solidarity. Consequently, the size of social welfare expenditure grew fast between 1996 and 1999. Korean experience of post-crisis years demonstrates the case in which the global integration of economy brought about the fast expansion of social welfare programs. The ultimate question is will this growth continue in the sea of neo-liberal challenges, with the new government's ‘Participatory Welfare’ whose complete design is not made public yet.


2021 ◽  
Vol 33 (4) ◽  
pp. 429-440
Author(s):  
EDWARD D. BERKOWITZ

AbstractThis policy perspective discusses three important social welfare programs—Social Security Disability Insurance, Medicare, and Temporary Aid to Needy Families—and offers an explanation of how they have expanded over time.


2006 ◽  
Vol 96 (4) ◽  
pp. 988-1012 ◽  
Author(s):  
Marianne P Bitler ◽  
Jonah B Gelbach ◽  
Hilary W Hoynes

Labor supply theory predicts systematic heterogeneity in the impact of recent welfare reforms on earnings, transfers, and income. Yet most welfare reform research focuses on mean impacts. We investigate the importance of heterogeneity using random-assignment data from Connecticut's Jobs First waiver, which features key elements of post-1996 welfare programs. Estimated quantile treatment effects exhibit the substantial heterogeneity predicted by labor supply theory. Thus mean impacts miss a great deal. Looking separately at samples of dropouts and other women does not improve the performance of mean impacts. We conclude that welfare reform's effects are likely both more varied and more extensive than has been recognized.


2012 ◽  
Vol 13 (3) ◽  
pp. 179-195
Author(s):  
Monika Bütler ◽  
Lukas Inderbitzin ◽  
Jonathan F. Schulz ◽  
Stefan Staubli

AbstractAs in many other countries, means tested benefits constitute an important part of the Swiss old age security system and disability insurance. In contrast to universal benefits, such targeted transfers are intended to only support the ones in need and thereby lead to low level of public expenses. However, individuals face strong incentives at various stages in life to adapt their behavior in order to become eligible. Using the Swiss Erg¨anzungsleistungen as an example, we argue that means tested benefits increase the incentive to apply for disability benefits, raise the attractiveness of early retirement, and induce individuals to favor a lump sum payment over an annuity. Moreover, they decrease the incentive to purchase private long-term care insurance.


2014 ◽  
Vol 104 (5) ◽  
pp. 183-188 ◽  
Author(s):  
François Gourio ◽  
Leena Rudanko

Intangible capital is an important factor of production in modern economies that is generally neglected in business cycle analyses. We demonstrate that intangible capital can have a substantial impact on business cycle dynamics, especially if the intangible is complementary with production capacity. We focus on customer capital: the capital embodied in the relationships a firm has with its customers. Introducing customer capital into a standard real business cycle model generates a volatile and countercyclical labor wedge, due to a mismeasured marginal product of labor. We also provide new evidence on cyclical variation in selling effort to discipline the exercise.


2015 ◽  
Vol 37 (2) ◽  
pp. 352-385 ◽  
Author(s):  
NADIA STEIBER ◽  
MARTIN KOHLI

ABSTRACTUsing data from the European Social Survey fielded in 2010/11, this study presents new evidence on retirement preferences in Europe. It investigates retirees'preferred and actual ages of retirement, focusing on the retirement window 1995–2011. Moreover, it reports on the prevalence of mismatch in the form ofinvoluntary retirement(retiring earlier than preferred) andinvoluntary work(retiring later than preferred). The study identifies substantial shares of retirees who are affected by a mismatch between their preferred and actual ages of retirement. In the majority of the countries analysed, at least 30 per cent of retirees would have preferred to continue working past the age at which they retired, while in a number of countries sizeable shares of retirees report involuntary work. The risk factors for involuntary retirement include the experience of late-career job loss, unemployment, job exits for health reasons and, in the case of women, working in higher-status occupations. The risk factors for involuntary work include fatherhood and, in the case of women, part-time work. As a result of rising actual ages of retirement, the risk of involuntary retirement has decreased for more recent retirement cohorts, while due to pension reforms that have tightened eligibility rules for early retirement, men's risk of involuntary work has increased. However, involuntary retirement is still more prevalent than involuntary work.


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