A new social question? On minimum income protection in the postindustrial era

Advanced welfare states are said to be facing, in the words of Pierre Rosanvallon, a "New Social Question". The idea here, and it is a widely shared one, is that the transition from an industrial to a postindustrial environment has brought with it a whole new set of social risks, constraints and trade-offs which necessitate radical recalibration of social security systems. This book analyses in some depth how economic change has impacted on minimum income protection in advanced welfare states. There is a particular focus on how Bismarckian welfare states have fared over recent decades.In A New Social Question? On Minimum Income Protection in the Postindustrial Era staat de vraag centraal of de overgang van een industriële naar een een post-industriële samenleving daadwerkelijk heeft geleid tot wat Pierre Rosanvallon ooit een 'Nieuwe Sociale Kwestie' noemde. We zouden vandaag immers geconfronteerd worden met sociale risico's en noden waarop de klassieke sociale zekerheidssystemen onmogelijk een bevredigend antwoord kunnen bieden. Een radicale herziening van het sociale stelstel lijkt onafwendbaar. In het 8e deel van de serie "http://www.aup.nl/changingwelfarestates" - 'Changing Welfare States' analyseert de auteur de impact van de economische eranderingen in de laatste decennia, op armoede en sociale zekerheid. Er is een bijzondere focus op de Bismarckiaanse welvaartsstaten zoals Nederland en België in de laatste decennia. Met name voor beleidsmakers en studenten die zich bezighouden met de sociale zekerheid is dit boek een aanrader

GINI DP 9: Comparable Indicators of Inequality Across Countries

This paper addresses the key issue for the GINI project of how best to approach the measurement of income inequality and wage inequality to enhance comparability across different studies. It focuses fi rst on income inequality, dealing with the defi nition of income, the income recipient unit, and the unit of analysis. The summary measures used to capture inequality are also discussed, with an emphasis on capturing trends at different points in the distribution, and sources for comparative data on inequality levels and trends are discussed. The paper then turns to inequality in earnings among employees and discusses the same set of issues in that context. The above bears directly on any analysis of inequality itself but it is also important for an analysis of the direct impacts of inequality at micro-level. For a (multilevel) analysis based on aggregate inequality as an input the paper provides an understanding of the need for comparable concepts and defi nitions across countries and links to data sources as well as aggregate levels. It also links to practical experiences of researchers with different datasets. For this and the datasets see the Data Portal at "gini-research.org":http://www.gini-research.org

A New Social Question?

Advanced welfare states are said to be facing, in the words of Pierre Rosanvallon, a "New Social Question". The idea here, and it is a widely shared one, is that the transition from an industrial to a postindustrial environment has brought with it a whole new set of social risks, constraints and trade-offs which necessitate radical recalibration of social security systems. This book analyses in some depth how economic change has impacted on minimum income protection in advanced welfare states. There is a particular focus on how Bismarckian welfare states have fared over recent decades

Combating In-Work Poverty in Continental Europe: An Investigation Using the Belgian Case

Recent studies find in-work poverty to be a pan-European phenomenon. Yet in-work poverty has come to the fore as a policy issue only recently in most continental European countries. Policies implemented in the United States and the United Kingdom, most notably in-work benefit schemes, are much discussed. This article argues that if it comes to preventing and alleviating poverty among workers, both the policy options and constraints facing Continental European policymakers are fundamentally different from those facing Anglo-Saxon policymakers. Consequently, policies that work in one setting cannot be simply emulated elsewhere. We present micro-simulation derived results for Belgium to illustrate some of these points. Policy options discussed and simulated include: higher minimum wages, reductions in employee social security contributions, tax relief for low-paid workers, and the implementation of a stylised version of the British Working Tax Credit. The latter measure has the strongest impact on in-work poverty but in settings where wages are compressed, as in Belgium, a severe trade-off between coverage and budgetary cost presents itself. The article concludes that looking beyond targeted measures to universal benefits and support for employment of carers may be important components of an overall policy package to tackle in-work poverty.negative income taxes, in-work poverty, low pay, in-work benefits

Do Europe's Minimum Income Schemes Provide Adequate Shelter against the Economic Crisis and How, If at All, Have Governments Responded?

The present economic crisis comes against the background of decades of policy changes that have generally weakened the capacity of social safety nets to offer citizens with adequate resources for financial survival when labour markets fail to do so. Building on data for 24 European Union countries, this paper asks whether EU governments implemented additional measures during the first phase of the crisis to improve safety nets. Our data, drawn from a large network of national experts, show that many countries introduced supportive measures, in particular in the form of additional increases in gross minimum income benefits. More generous child benefits have also helped to increase net disposable incomes of families on minimum income. Behavioral requirements imposed on minimum income recipients have been neither tightened nor relaxed. In a limited number of countries, activation efforts aimed at minimum income recipients have been intensified. Despite some improvements, social safety nets in Europe remain far below widely accepted poverty thresholds, including the EU's own official measure.crisis measures, poverty, minimum incomes, social policy, Europe

GINI DP 15: Can higher employment levels bring down poverty in the EU?

At the European level and in most EU member states, higher employment levels are seen as key to better poverty outcomes. But what can we expect the actual impact to be? Up until now shift-share analysis has been used to estimate the impact of rising employment on relative income poverty. This method has serious limitations. We propose a more sophisticated simulation model that builds on regression based estimates of employment probabilities and wages. We use this model to estimate the impact on relative income poverty of moving towards the Europe 2020 target of 75 percent of the working aged population in work. Two sensitivity checks are included: giving priority in job allocation to jobless households and imputing low instead of estimated wages. This article shows that employment growth does not necessarily result in lower relative poverty shares, a result that is largely consistent with observed outcomes over the past decade.

The labour market position of second‑generation immigrants in Belgium. National Bank of Belgium Working Paper No. 285

Belgium has one of the largest gaps in labour market outcomes between natives and individuals of foreign origin. One might expect that the children of migrants (the so-called second generation) would perform better than the first generation, as they ought to have a better knowledge of the local language, better educational qualifications and greater opportunities for work experience in the domestic labour market. On the basis of data from the ad hoc module of 2008 Labour Force Survey (LFS) we find that employment rates for generation migrants in Belgium are hardly better than those for first generation migrants. This finding stands in marked contrast what is found in neighbouring countries. Using a unique combination of data sources, we examine the labour market position of second-generation migrants in more depth. We find considerable variation in labour market outcomes by country of origin and a Fairlie decomposition yields that education is an important explanatory factor of the employment rate gap. Yet there still remains a large unexplained part

Poor workers in rich democracies: on the nature of in-work poverty and its relationship to labour market policies

The working poor were long thought of as people toiling away in lousy, under-protected and underpaid jobs in places like fast-food joints, supermarkets, hotels and bars. The perfidious consequence of that perception was that in-work poverty was seen as a non-issue in countries with extensive labour protections, especially in countries with minimum wages at significant levels. The idea that the working poor were only to be found in the so-called "liberal" economies lacking strongly organized labour and proper regulatory correction has turned out to be completely wrong. In-work poverty exists in all rich economies. But what, exactly, do we mean by in-work poverty? How is it related to labour market trends and also to policies? And how might governments look to successfully tackle the problem of working poverty? In this paper, a draft chapter forthcoming in Clegg, D. and Durazzi, N. (eds), Research Handbook of Labour Market Policy in Rich Democracies, with Edward Elgar we provide some answers to these important questions

To What Extent do Fiscal Regimes Equalize Opportunities for Income Acquisition Among Citizens?

This project employs the theory of equality of opportunity, described in Roemer's book (Equality of Opportunity, Harvard University Press, 1998), to compute the extent to which tax-and-transfer regimes in ten countries equalize opportunities among citizens for income acquisition. Roughly speaking, equality of opportunity for incomes has been achieved in a country when it is the case that the distributions of post-fisc income are the same for different types of citizen, where a citizen's type is defined by the socioeconomic status of his parents. Intuitively, a country will have equalized opportunity if the chances of earning high (or low) income are equal for citizens from all family backgrounds. Of course, pre-fisc income distributions, by type, will not be identical, as long as the educational system does not entirely make up for the disadvantage that children, who come from poor families face, but the tax-and-transfer system can play a role in rectifying that inequality. We include, in our computation, two numbers that summarize the extent to which each country's current fiscal regime achieves equalization of opportunities for income, and the deadweight loss that would be incurred by moving to the regime that does.

To what extent do fiscal regimes equalize opportunities for income acquisition among citizens?.

This paper employs the theory of equality of opportunity, described in Roemer’s book (Equality of Opportunity, Harvard University Press, 1998), to compute the extent to which tax-and-transfer regimes in 11 countries equalize opportunities among citizens for income acquisition. Roughly speaking, equality of opportunity for incomes has been achieved in a country when it is the case that the distributions of post-fisc income are the same for different types of citizen, where a citizen’s type is defined by the socio-economic status of his parents. Intuitively, a country will have equalized opportunity if the chances of earning high (or low) income are equal for citizens from all family backgrounds. Of course, pre-fisc income distributions, by type, will not be identical, as long as the educational system does not entirely make up for the disadvantage that children, who come from poor families face, but the tax-and-transfer system can play a role in rectifying that inequality. We include, in our computation, two numbers that summarize the extent to which each country’s current fiscal regime achieves equalization of opportunities for income, and the deadweight loss that would be incurred by moving to the regime that does.Fiscal regimes; Equal opportunities; Income acquisition;