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The Accidental Republic is a concern for all industrialised countries, and China is no exception. To solve this problem, Workers’ Compensation Insurance (WCI) is a perfect option. The redemption of The Accidental Republic can be understood through the development of WCI. However, little attention has been paid to the development of Chinese WCI. Starting from labour insurance regulations promulgated in 1951, this research explores over 70 years of reform and development of Chinese WCI, explicitly dividing reforms into three phases – establishment and implementation, exploration and practice, and adaptation and formation – that aligned with stages of China’s economic development. Further, the insurance fund performance in the last decade is evaluated by Data envelopment analysis and Malmquist (DEA-Malmquist), through the static and dynamic results, yielding generally average results. Subsequently, five major problems of WCI are identified and discussed and five suggestions offered drawing on international comparison and the national situation. Lastly, the accidental and inevitable aspects of China’s WCI system during the redemption of The Accidental Republic are summarised.
Using the public-use files of the Canadian Community Health Survey and a difference-in-differences methodology, we estimate the impact of a universal income transfer (the Universal Child Care Benefit) on food insecurity, separately for adults and children within households. The income transfer reduced the risk of overall food insecurity by 20% at the child level, and the effect was larger in households with lower education or income. The transfer also reduced the likelihood of moderate/severe food insecurity among adults in single-parent families, as well as adults and children in households with secondary education or less. These findings withstand several robustness checks.
We develop a general equilibrium overlapping generations framework with incompletely rational individuals to study old-age saving incentives. Such incentives are used worldwide to help achieve the high savings rate required to sustain sufficient consumption in old age. We show that they raise the welfare of financially illiterate individuals and those with a high degree of time inconsistency. They also reduce the incidence of poverty in old age. We further quantify the fiscal cost, crowd-out, and ability to target the transfers to individuals who need the most. Given the high prevalence of these schemes, our paper has broad policy implications.
While the theory of economic policy offers a potential framework for thinking about the joint pursuit of economic objectives (EOs) and non-economic objectives (NEOs), over time the theory of economic policy was formalized in a way that considers NEOs as constraints that are given, rather than as goals that may themselves be endogenous alongside EOs. We examine the analytical treatment of NEOs as co-determined with EOs, revisiting some of the ground broken by Alan Winters in his analysis of NEOs. We review the place of NEOs in the theory of economic policy, discuss current practice in the representation of such objectives as exogenous constraints, and develop an argument for representation of NEOs as objectives in themselves.
At the onset of the Covid-19 crisis, and with one of the largest and best-funded defined contribution programs in Latin America, Chile held over USD $200 bn in assets (or more than 80% of GDP). Reacting to populist pressures during the pandemic, however, the Congress gave non-retired participants three separate opportunities to tap into their retirement accounts, leaving some 4.2 million participants with zero retirement savings and draining around $50 bn from the system. This paper explores several hypotheses regarding why people withdrew their pension money early, and it also presents evidence regarding the likely impact of this short-term policy on long-term retirement wellbeing. We conclude with lessons for global policymakers seeking to protect pension assets critical for retirement security.
Motivated by traffic congestion and air pollution, Beijing is one of several major cities to restrict vehicle ownership by requiring residents to win a lottery for the right to obtain an additional car. We examine the welfare cost of preventing people from owning cars because of misallocation: under a lottery, some individuals with low willingness to pay (WTP) for cars can obtain cars, while other individuals with high WTP cannot. We estimate welfare costs using a new contingent valuation method survey of Beijing lottery participants which we designed and conducted explicitly for this purpose. We find that restricting vehicle ownership reduced private welfare by 26 billion yuan. Back-of-the-envelope calculations suggest that the benefits of lower congestion and pollution roughly equal the costs. Our WTP estimates indicate a net welfare gain of approximately 32 billion yuan if Beijing’s lottery were replaced with an auction, which is similar to previous estimates.
This article uses Loïc Wacquant’s concept of the centaur state to analyse symbolic framings of the meaning and future of work in the Australian policy response to COVID-19 in 2020. In contrast with historical conceptualisations anchored in rights and social security, contemporary Australian social welfare policy discourse is dominated by political representations of the imperative to work. For people currently outside of the labour market, self-reliance through paid work is a primary objective of social security policy. In 2020, economic impacts of national lockdowns were ameliorated by large transfers from the state to businesses and individuals. Concurrent announcements of plans for a ‘business-led’ post-pandemic economic recovery centred the message that the meaning of work lies in its individual and social utility. Prior to the pandemic, transformation of the modes of organisation of work had already brought into question normative claims about the meaning of work, and what is comprehended by the term ‘job’. Analysis of key ‘economic recovery’ policy initiatives illustrates that they combined considerable corporate welfare with a construction of job seekers as having unrealistic expectations of meaningful work, for which there could be no room in the institutional machinery driving economic recovery. In the policy trajectory of the Australian centaur state, the future of work for people currently unemployed is to serve as a resource to fuel the business-led recovery.
Mainstream economists argue that unemployment must be tackled with ‘flexibilisation’ or ‘labour market deregulation’. The public policy application has been the principle of ‘flexicurity’, with mixed labour market outcomes and limited success. Central contributions to theoretical and empirical economics writing on unemployment issues still espouse ‘flexibilisation’ as a general approach and warn about the detrimental effects of systematic deregulation under expectations of outcomes such as lower unemployment. Departing from a review of this literature, we take a step further from the ‘flexicurity’ prescription, to follow the capabilities approach of Sen and others, and develop a concept of social capabilities–based flexicurity for a learning economy, arguing that labour market performance must be targeted in an approach that includes a strong commitment to social well-being.
Singapore’s Progressive Wage Model, introduced in 2012 and mandatory in the cleaning industry since 2015, is a skills- and productivity-based approach to redesigning jobs and restructuring wages in the largely outsourced cleaning, security and landscaping sectors. Focusing on cleaning work in the food and beverage industry, this case study examines some early outcomes of this national drive to reduce wage inequality by improving the pay and conditions of commodified work in a sector subject to outsourcing-based cost competition. Based on interviews with cleaners, supervisors and managers, the findings suggest that in general, government and the trade union and employers’ association have worked together, to set wages and conditions transparently. Nevertheless, enforcement issues mean that cleaners remain vulnerable. They have limited information about their employment benefits and face various types of poor conditions, some sanctioned by and others in violation of labour laws. These vulnerabilities have structural roots, including rent imbalances and cheap sourcing, factors that commodify jobs. The implementation of the Progressive Wage Model may have helped de-commodify cleaning jobs for Singaporeans and permanent residents, but such outcomes are still dependent on non-systemic and unenforceable factors such as the kindness of individual supervisors. While a promising start has been made, Singapore’s initial efforts to improve incomes and conditions in low-wage work will nevertheless require stronger regulatory commitment.
The ‘Wellbeing Budget’ presented to the New Zealand Parliament in 2019 was widely described as a world-first. This article explores the possibility of a distinctive Australasian contribution to our understanding of wellbeing economics in public policy. The introduction section presents an analytical wellbeing framework showing how human actions draw on services provided by the country’s capital stocks to create and sustain personal and communal wellbeing. The second section chronicles some landmark policy initiatives in Australia and New Zealand for understanding and monitoring wellbeing, culminating in the Wellbeing Budget. The third section highlights four areas for further development: (1) the role of family wellbeing in intergenerational wellbeing, (2) the role of cultural capital in providing foundations for future wellbeing, (3) the role of Indigenous worldviews in enriching understandings of wellbeing and (4) the role of market enterprise in expanding capabilities for wellbeing. These are all areas where Australasian researchers have demonstrated expertise.
The low level of the Newstart (unemployment benefit) payment has become a major source of concern about Australia’s willingness and ability to protect unemployed Australians from poverty. Despite this disquiet, there has been little scholarly examination of the implications of living on Newstart. In this article, through the use of a survey and in-depth interviews, we examine features of everyday life for Newstart recipients in the Sydney area, experiences that reveal the scarring potential of low benefits. The article illustrates that for a majority of interview participants, the most basic items were difficult to purchase and many of the interviewees were living in inadequate and even unsafe situations owing to an inability to afford satisfactory accommodation. For some, their lack of disposable income had severe health implications. Social isolation was a common phenomenon, and many of the interviewees found that the low payment made finding employment a lot more challenging.
Informed by autonomist perspectives on precarious work and labour subjectivity, this article discusses the dynamics between autonomy and job precarity. Based on purposive sampling, the qualitative findings, drawn from interviews with precarious workers aged 18–29 years in Hong Kong, reveal tensions among four types of aspirations. First, the desire for achieving freedom and individual ambition in work made the respondents critical of the notion of employment-related stability. Second, a determination to break with mainstream career paths empowered young people to take alternative pathways to new modes of work and life. Third, precarious employment was seen as a stepping stone for realising plans for travel or study. Finally, tolerance of precarity was perceived as a transitional stage in their striving for future stability. However, the findings also show the structured dilemmas experienced by young workers regarding the complex relationship between autonomy and precarity in a neoliberal labour market. Some young workers pursued work–life autonomy, constrained by precarious employment relations, acknowledging and bearing the costs, while some strategically used precarity in individual negotiations with employers to realise their goals. This article analyses young workers’ subjectivity through the lenses of autonomy and age and pushes the boundary of precarity studies beyond an implicit dichotomy between determinism and voluntarism.
The decision in the early 1990s to cut back on the building of public housing intensified the already dire shortage of affordable housing and increased the marginalisation of the sector. To be eligible for public housing, new entrants usually have to be in ‘greatest need’. This study argues that the shift in the eligibility criteria for accessing public housing means that public housing estates increasingly reflect what Loïc Wacquant calls ‘advanced urban marginality’. The article assesses whether the features of advanced urban marginality that are identified by Wacquant capture and can be usefully used to analyse the shifts and contemporary characteristics of public housing. The article draws on existing data and in-depth interviews with 33 older (aged more than 65 years) public housing tenants in Sydney, Australia, to analyse the residualisation of public housing using the features of advanced marginality identified by Wacquant – ‘wage labour as a vector of social instability and life insecurity’, ‘functional disconnection from macroeconomic trends’, ‘territorial fixation and stigmatisation’, ‘spatial alienation and the dissolution of place’, ‘loss of hinterland’ and ‘social fragmentation and symbolic splintering’. The study concludes that although Wacquant’s analysis is useful and captures much of what has occurred in public housing estates in Sydney, in many instances, public housing remains a source of pride for its tenants and provides them with the basis for a good life.
The purpose of this article is to investigate emerging areas of precarious employment in Sweden. Based on the literature on dimensions of precariousness and neoliberalism, this article will begin with an analysis of the transitioning Swedish welfare state and the contextual environment of precarious employment in Sweden. This will serve as a point of departure for the development of an occupational classification scheme including measures of income and employment security. In an empirical analysis, the occupational classification will be applied to a population-based register material including two birth cohorts of employed Swedish residents aged 28–33, with a registered income. The development of income and employment security will be described and discussed. By applying this newly developed measure of precarious employment, this article will provide a platform for future theoretical and empirical research on precarious employment in a transitioning welfare state.
Traditionally, older people have been the key targets of Australia’s targeted welfare state. Flat rate pensions and widespread home ownership have ensured relative equality in older life. However, in response to perceived fiscal pressures generated by population ageing, Australia has increasingly shifted its policy settings, encouraging private savings over public risk pooling. Private savings are increasingly supported by public subsidy through tax policy. This has led to overlapping policy priorities, as public subsidies are used both as incentives to promote savings and as social policy instruments to promote adequate living standards in retirement. This conflict is evident in recent policy reviews of taxation, public spending and pension policy. This article explores the development of this conflict and how it manifests in proposals for reform. We argue that the conflation of welfare and taxation goals increasingly creates a dual welfare state that promotes private provision at the expense of both equity and efficiency. We suggest that more explicit identification of the roles of tax policy, and the welfare implications of tax changes, would help to improve policy design.
Two timely reviews of Australia’s transfer and tax systems were commissioned by the incoming government in 2008, although the GST, tax exemption of superannuation payments to people aged over 60, and pre-announced personal income tax cuts were placed outside the scope of inquiry. Most of the recommendations of the Harmer Pension Review have been implemented, but most of the recommendations of the Henry Tax Review have not. The Henry recommendations provided for enhanced equity and efficiency through a broader and simplified base, concentrating revenue raising on personal and business income, private consumption, and economic rents from natural resources and land. They provide an integrated blueprint for ongoing debate over tax reform.
Using detailed data from the third round of the District Level Household Survey of India, this paper examines in detail the effect of child marriage of women on contraceptive usage and access to skilled care during pregnancy and delivery. This paper particularly focuses on sixteen different outcome variables categorized under four broad sub-groups; namely, family planning and contraceptive usage, birth history, utilization of antenatal care; and finally, natal and postnatal care. The overall results presented in the paper suggest that women who marry early, i.e. before they reach the legal age of marriage are more likely to have experienced miscarriage, give birth before they turn 18 and lose children. They also lack current contraception usage and are less likely to access public health facilities during both pregnancy and childbirth. These results, however, vary widely based on the state of residence and age of the women in question.
Since the publication of the seminal book Nudge by Thaler and Sunstein, several critics have highlighted preference endogeneity as a serious obstacle to nudging. When individuals hold preferences that are dynamic and endogenous to the nudge frame, it is unclear what the normative benchmark for libertarian paternalistic policies should be. While acknowledging this issue, the pro-nudging camp has not yet sufficiently addressed it. This article aims to fill this void by presenting a conditional defence of nudging when preferences are endogenous. We explain the learning process through which individuals establish ‘agentic’ preferences: preferences that are sufficiently stable, reasonable, autonomous and associated with organismic well-being to ground the ‘welfare’ principle of libertarian paternalism. To describe this process, we draw on theories from psychological science, in particular self-discrepancy theory and self-determination theory. We argue that agentic preferences are not only welfare-relevant and thus appropriate to libertarian paternalism but can also be identified by choice architects.
Countries make differing policy choices. They can serve as a scientific laboratory for drawing lessons on the policy paths to follow or to avoid and the consequences of those institutional choices on individuals at older ages. In this special issue we bring together six articles that evaluate the influence of institutions on retirement decisions, health and well-being of older adults using common data that have emerged with the international network of health and retirement studies to study key life outcomes such as health, work, and lifecycle transitions at older ages.
Climate change and weather shocks have multi-faceted impacts on food systems with important implications for economic policy. Combining a longitudinal household survey with high-resolution climate data, we demonstrate that both climate and weather shocks increase food insecurity; cash assistance and participation in Ethiopia’s Productive Safety Net Programme have reduced food insecurity; but food assistance has been ineffective. Importantly, households with savings, and those that stored their harvest to sell at higher prices rather than for home use, suffered less from food insecurity, yet both strategies are harder for the poorest and most food insecure households to adopt. Our paper provides micro-founded evidence needed to design policies that both improve agricultural yields in the context of a changing climate and target households’ abilities to cope with shocks that put upwards pressure on food prices.