Serving the Unemployed: Do More Generous Social Insurance Programs Provide Better Quality Service?

2021 ◽  
Vol 36 (3) ◽  
pp. 1-11
Author(s):  
Compton Mallory E.

The role and capacity of public administration in contributing to economic security is an increasingly important question. More generous social welfare programs may have greater capacity to insure households against risk, but those programs can effectively provide economic security only to the extent that public organizations deliver benefits promptly and properly to families in need. Administrative performance matters. Given that governments with more generous social programs have demonstrated social welfare to be a priority, are those governments also more likely to put effort towards better administration of welfare programs? This question is addressed here using administrative performance data from U.S. state-level unemployment insurance programs, from 2002-2015. Evidence points to a positive association between generosity and administrative quality: more generous states make fewer administrative errors and that relationship is driven by their making fewer underpayments. If unemployment insurance replacement rates reflect an institutionalized commitment to more generously protecting individuals from economic insecurity, that commitment is also evident in the types of administrative errors agents make.

2018 ◽  
Vol 18 (3) ◽  
pp. 215-245 ◽  
Author(s):  
Mallory E. Compton

Rising economic insecurity in recent decades has focused attention on the importance of social welfare programs in managing household financial stability. Some governments are more effective than others in managing this outcome, and informal social institutions help explain why. Social capital is expected to shape economic security through multiple mechanisms, but whether the effect is to magnify or mitigate volatility is an open question. Part of the answer has to do with how social capital interacts with policy implementation, and whether it conditions the effectiveness of government spending. Evidence from the U.S. states from 1986 to 2010 fails to support a benevolent social capital thesis—not only is social capital associated with greater economic insecurity, there is no evidence that it improves social welfare effectiveness. However, greater spending on some social programs can mitigate the adverse impact of social capital on economic security.


This chapter examines the development of social welfare programs in Western democracies and notes that they are influenced by cultural, economic, and political contexts. The chapter argues that in order to understand how social policies and social programs are developed, the cultural, economic, and politician contexts must be considered. The chapter, therefore, seeks to examine the cultural context that influenced the development of social policy, the economic context that influenced the development of social policy, and the political context that influenced the development of social policy.


Author(s):  
Roy Germano

Remittances sent by international migrants have become an increasingly important source of social welfare in the developing world. This chapter explores what remittances are, why migrants send them, and how poor families use them. I argue in this chapter that remittances are more than just gifts from one relative to another. They play a larger social welfare role that complements funds that governments spend on social welfare programs. This social welfare function has become particularly important in recent decades as developing countries have prioritized austerity and integrated into volatile global markets. I argue that by filling a welfare gap in an age of austerity, remittances help to reduce the suffering and anger that so often trigger political and social instability during times of economic crisis.


Author(s):  
Kevin Vallier

Americans today don’t trust each other and their institutions as much as they used to. The collapse of social and political trust arguably has fueled our increasingly ferocious ideological conflicts and hardened partisanship. But is the decline in trust inevitable? Are we caught in a downward spiral that must end in war-like politics, institutional decay, and possibly even civil war? This book argues that American political and economic institutions are capable of creating and maintaining trust, even through polarized times. Combining philosophical arguments and empirical data, the author shows that liberal democracy, markets, and social welfare programs all play a vital role in producing social and political trust. Even more, these institutions can promote trust justly, by recognizing and respecting our basic human rights.


The Forum ◽  
2020 ◽  
Vol 18 (2) ◽  
pp. 223-247
Author(s):  
Ryan LaRochelle

AbstractThis article sheds new light on how conservatism has affected American state development by tracing the history of how block-granting transformed from a bipartisan tool to solve problems of public administration in the 1940s into a mechanism to roll back and decentralize the welfare state that had reached its zenith in the 1960s. By the early 1980s, conservative policymakers had coopted the previously bipartisan tool in their efforts to chip away at the increasingly centralized social welfare system that emerged out of the Great Society. In the early 1980s, Ronald Reagan successfully converted numerous categorical grants into a series of block grants, slashing funding for several social safety net programs. Block-granting allows conservative opponents of the postwar welfare state to gradually erode funding and grant more authority to state governments, thus using federalism as a more palatable political weapon to reduce social welfare spending than the full dismantlement of social programs. However, despite a flurry of successes in the early 1980s, block-granting has not proven as successful as conservatives might have hoped, and recent efforts to convert programs such as Medicaid and parts of the Affordable Care Act into block grants have failed. The failure of recent failed block grant efforts highlights the resilience of liberal reforms, even in the face of sustained conservative opposition. However, conservatives still draw upon the tool today in their efforts to erode and retrench social welfare programs. Block-granting has thus transformed from a bipartisan tool to improve bureaucratic effectiveness into a perennial weapon in conservatives’ war on the welfare state.


2021 ◽  
pp. 1-38
Author(s):  
David Freeman Engstrom ◽  
David K. Hausman

Critics have long maintained that the rights revolution and, by extension, the postwar turn to litigation as a regulatory tool, are the product of a cynical legislative choice. On this view, legislators choose rights and litigation over alternative regulatory approaches to shift costs from on-budget forms (for example, publicly funded social provisions, public enforcement actions by prosecutors or agencies) to off-budget forms (for example, rights-based statutory duties, enforced via private lawsuits). This “cost-shift” theory has never been subjected to sustained theoretical scrutiny or comprehensive empirical test. This article offers the first such analysis, examining a context where the cost-shift hypothesis is at its most plausible: disability discrimination laws, which shift costs away from social welfare programs by requiring that employers hire and “accommodate” workers with disabilities. Using a novel dataset of state-level disability discrimination laws enacted prior to the federal-level Americans with Disabilities Act (ADA) and a range of archival and other materials drawn from state-level legislative campaigns, we find only limited support for the view that cost shifting offered at least part of the motivation for these laws. Our findings offer a fresh perspective on long-standing debates about American disability law and politics, including judicial interpretation of the ADA and its state-level analogues and the relationship of disability rights activism to other rights-based political movements.


2018 ◽  
Vol 108 ◽  
pp. 384-387
Author(s):  
Victoria Perez ◽  
Joseph Benitez ◽  
Eric Seiber

In 2016, total Medicaid spending, $574.2 billion, represented one-third of state budgets. Descriptive studies indicate that state policymakers adjust social welfare programs during times of financial distress, particularly Medicaid. The challenge of formally estimating this effect is that macroeconomic shocks increase Medicaid enrollment and state-level financial stress. We use an exogenous measure of Medicaid generosity to estimate the elasticity of Medicaid generosity with respect to financial conditions. We find Medicaid generosity is not adjusted during periods of fiscal distress, whether anticipated or not. Instead, we find a counter-cyclical Medicaid effect with generosity increasing with increases in the unemployment rate.


Author(s):  
R. Cherry

This article briefly reviews the conservative, liberal and radical approaches to social welfare programs, and compares these with empirical evidence from the USA. Conservatives stress that welfare programs reduce work incentives and undermine individual initiatives. Liberals suggest that cuts in welfare have created increased hardship without changing significantly the incentives to work. The Massachusetts Employment and Training Program is analyzed from both perspectives. The Program does not reduce benefits but instead increases work incentives. The results of this Program are skeptically reviewed by radicals as well as some liberals.


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