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Over the past decade there have been repeated calls for the greater taxation of wealth. These calls have had little impact on policy. There has been a global trend to reduce or abolish taxes on wealth. The contrast suggests that it may be better now to explore how taxes on wealth may be made a reality rather than designing new tax proposals. What are the barriers to tax wealth? This paper addresses this by conducting a case study of a high profile plan for introducing a one-off wealth tax in the UK. It identifies a tyranny of the status quo, framing and the policy process as key barriers to tax reform. It uses thematic analysis to study how the plans for a one-off wealth tax were discussed in the media and the UK Parliament. This paper argues that there were important shortfalls in both the way the case for a wealth tax was framed as well as the engagement with the policy process. It claims that a stronger framing would have discussed wealth inequality in greater depth and there was a need for a less equivocal case to Parliamentarians. [ABSTRACT FROM AUTHOR]

In this paper, we estimate the causal effects of a set of active labor market programs for male unemployed refugees on welfare who entered Germany between, 2013 and September, 2016. Using rich administrative data, we employ covariate balancing propensity scores combined with inverse probability weighting to estimate effects up to 33 months after the start of treatment. Our results show that relatively short-term training in the form of Schemes by Providers and In-Firm Training, as well as longer-term Further Vocational Training programs have a positive impact on both the employment chances as well as labor market earnings of refugees in the medium run. So-called "One Euro Jobs", a public employment program, does not yield positive effects on employment or earnings. Sensitivity analyses confirm that our results are unlikely to be driven by unobserved confounding. [ABSTRACT FROM AUTHOR]

Rapid technological change – the digitalization and automation of work – is challenging contemporary welfare states. Most of the existing research, however, focuses on its effect on labor market outcomes, such as employment or wage levels. In contrast, this paper studies the implications of technological change for welfare state attitudes and preferences. Compared to previous work on this topic, this paper adopts a much broader perspective regarding different kinds of social policy. Using data from the European Social Survey, we find that individual automation risk is positively associated with support for redistribution, but negatively with support for social investment policies (partly depending on the specific measure of automation risk that is used), while there is no statistically significant association with support for basic income. We also find a moderating effect of the overall size of the welfare state on the micro-level association between risk and preferences. [ABSTRACT FROM AUTHOR]

In Germany, as in many other European countries, vast changes in the welfare regime – towards workfare – have taken place. As a central activating element of workfare, sanctions were introduced to take effect by temporarily increasing deprivation through benefit cuts. This paper provides first quantitative insights on the effect of first sanctions on deprivation and contributes to the recent debate on the (un)constitutionality of sanctions, which re-emerged after a verdict of the Federal Constitutional Court, criticizing the lack of knowledge about the effects of sanctions on those affected. We implement a difference-in-differences propensity score matching approach that addresses selection on observables and individual time constant unobserved differences. High data accuracy is ensured by combining the "Panel Labour Market and Social Security" (PASS) with administrative data from the Federal Employment Agency. The results illustrate a slightly higher yet statistically insignificant level of deprivation for first-sanctioned unemployment/basic income recipients compared to non-sanctioned recipients. The results hint in the direction that higher levels of deprivation are not what activates the sanctioned beneficiaries to reintegrate into the labour market. We discuss whether the results imply a significant deviation from the socio-cultural subsistence minimum of sanctioned recipients and a failure of the welfare state. [ABSTRACT FROM AUTHOR]

Policymakers are liable to 'treasure what is measured' and overlook phenomena that are not. In an era of increased reliance on administrative data, existing policies also often determine what is measured in the first place. We explore this two-way interaction between measurement and policy in the context of the investment incomes and capital gains that are missing from the UK's official income statistics. We show that these 'missing incomes' change the established picture of economic inequality over the past decade, revealing rising top income shares during the period of austerity. The underestimation of these forms of income in official statistics has hidden the impact of tax policies that disproportionately benefit the wealthiest. We urge a renewed focus on how policy affects and is affected by measurement. [ABSTRACT FROM AUTHOR]

Collective Defined Contribution (CDC) pension schemes are a variant of collective pension plans that are present in many countries and especially common in the Netherlands. CDC schemes are based on the pooled management of the retirement savings of all members, thereby incorporating inter-generational risk-sharing features. Employers are not subject to investment and longevity risks as these are transferred to plan members collectively. In this paper, we discuss policy related to the proposed introduction of CDC schemes to the UK. By means of a simulation-based study, we compare the performance of CDC schemes vis-à-vis typical Defined Contribution schemes under different investment strategies. We find that CDC schemes may provide retirees with a higher income replacement rate on average, together with less uncertainty. [ABSTRACT FROM AUTHOR]

Across many countries, increases in inequality driven by rising top incomes and wealth have not been accompanied by growing popular concern. In fact, citizens in unequal societies are less concerned than those in more egalitarian societies. Understanding how the general public perceive richness is an essential step towards resolving this paradox. We discuss findings from focus group research in London, UK, a profoundly and visibly unequal city, which sought to explore public perceptions of richness and the rich. Participants from diverse socio-economic backgrounds discussed their views of the 'wealthy' and the 'super rich' with reference to both vast economic resources and more intangible aspects, including, crucially, security. High levels of wealth and income were perceived to be necessary for achieving security for oneself and one's family. The security of the rich was discussed in contrast to participants' own and others' insecurity in the context of a (neo)liberal welfare regime – specifically, insecurity about housing, personal finances, social security, health care and the future of the welfare state. In unequal countries, where insecurity is widespread, lack of confidence in collective welfare state provision may serve in the public imagination to legitimate private wealth accumulation and richness as a form of self-protection. [ABSTRACT FROM AUTHOR]

When designing programs to assist the poor, it is important to recognize who is most in need of government assistance. Although measures of poverty are often based on income alone, poverty measures based on both income and assets provide greater precision in the analysis of this group since accumulated assets can be liquidated to compensate for temporary shortfalls in income. The current study used the Panel Study of Income Dynamics (2007–2017) to analyze associations between different facets of poverty dynamics (i.e. poverty entry and exit) and its determinants. We explored differences in results based on whether poverty was measured by income alone, or income plus assets. The Cox proportional hazard regression was used to examine how demographic characteristics predicted poverty entry and poverty exit. Results indicated factors predicting poverty entry were not identical to those predicting difficulty of exiting poverty. Also, the risk of poverty entry and exit differed based on whether poverty was measured by income alone, or income plus assets. Thus, using income plus assets provides new perspectives into poverty dynamics which past research, based on income alone, did not provide. These new insights can be used to inform decisions about policies for poverty prevention and alleviation. [ABSTRACT FROM AUTHOR]

A major reason for the gendered division of parental leave use is the financial compensation during leave. Swedish national parental leave benefit provides 77.6 percent of earlier earnings up to an income ceiling, but collective agreements cover part of the income loss above the ceiling during leave. We focus on the importance of such collective agreements by examining fathers' parental leave take-up across the 2000s, as agreements were expanded during this period in time. We combine register data for the period 2001 to 2011 with the Longitudinal Integrated Database for Health Insurance and Labour Market Studies (LISA) being the key data source. The main division of agreements is between the state, the municipality and county, and the private sector. Results indicate that fathers with income above the income ceiling increase their use over the time period. Especially in the private sector a polarisation can be seen, where high income fathers increase their leave use, while fathers with lower income fall behind. As we do not find stronger increase in fathers' leave use in sectors where agreements expanded across time there is no evident support of a direct effect of the top-ups. [ABSTRACT FROM AUTHOR]

Changes in the labour market, high rates of working age poverty, major welfare reforms and more recently the Covid-19 pandemic have drawn renewed attention to income security. Existing research has identified the important role of relational support in helping people cope with low income, but less is known about the role of support for those coping with the potentially destabilising effects of income change which can affect people over relatively short periods of time. This article focuses on how relational coping strategies are utilised by those experiencing such income change. The data are drawn from a qualitative longitudinal study of the experience of income change and insecurity in 15 low-income households in the UK which included repeated in-depth interviews and weekly financial diaries completed in periods of up to five months. The article explores the relational strategies adopted by participants to 'get by' as well as examining how strategies are adopted by those on different levels of low income and with differing networks. The article argues that these strategies illuminate the importance of income change in the experience of low-income households, develop the concept of income insecurity, and provide lessons for policy in providing flexible and responsive support when income changes. [ABSTRACT FROM AUTHOR]

This study proposes a novel and systematic theoretical framework to explain global welfare state policy differences. The existing scholarship examined ample welfare state variations, reforms, and transitions; however, it is typically limited to specific countries, regions, policies, or risks. In an endeavor to combine these theoretical and empirical insights, the global contemporary welfare state patterns remain vague. This study aims at bridging this gap in the literature by deploying an orderly and comprehensive three-step procedure. First, I formally design a three-stage global yet comparative conceptual framework that ensures consistency, inclusiveness, and compliance. Second, based on this framework, I assemble a unique comparative dataset for one-hundred-fifty countries, some of which appear for the first time in this literature. Third, I validate the framework using an advanced data reduction method named model-based cluster analysis. The results of this study demonstrate that global contemporary welfare states follow systematically divergent paths, revealing Proactive, Reactive, and Dual patterns. [ABSTRACT FROM AUTHOR]

Non-take-up of means-tested benefits is a widespread phenomenon which undermines the effectiveness and fairness of social policies. The digitalisation of the welfare state creates new opportunities for proactively contacting people who are potentially entitled to benefits, but do not take up their social rights. In this study, we report on how new data flows were used to reach out to potential beneficiaries of the Increased Reimbursement of health care, a programme targeted at low-income households in Belgium. By randomizing the period in which potential beneficiaries were contacted, we were able to identify a three- to four-fold increase in take-up among those contacted as a result of the outreaching activities. Households that did not respond to the intervention, the never takers, have lower pre-intervention healthcare expenditures. This suggests that non-take-up was reduced primarily among those who would expect to benefit most from receiving the Increased Reimbursement. Exploiting the combination of rich administrative data with experimental evidence, we also find that early responders are mostly older and have higher historic health expenditures than late responders. Furthermore, results point to the need for balancing well the inclusiveness of the intervention with an increased number of applications by ineligible people. [ABSTRACT FROM AUTHOR]

This article conceptualizes recent momentum for basic income in the context of the legitimization crisis of neoliberalism and the dissolution of the 'progressive neoliberal' governing bloc that secured its hegemony for more than two decades. Through an assessment of the ideas of Friedrich Hayek and Milton Friedman, it argues that basic income is one of the few policy solutions in the mainstream discourse that improves social welfare and income security, while also remaining consistent with neoliberalism's inner logic. Accordingly, it holds the potential to temporarily stabilize neoliberalism's political crisis by offering a consensus issue around which a new centrist coalition could emerge. Although much of the basic income literature has focused on grassroots coalitions and synergies between left and right, it has largely overlooked the emergence of the historical forces that have pushed it onto the mainstream policy agenda. [ABSTRACT FROM AUTHOR]

The EU and OECD's use of poverty lines set at a percentage of national average income is testimony to the widespread acceptance of Peter Townsend's purely relative poverty definition. It has often been defended, including by Townsend, as a development of Adam Smith's reference to 'necessaries' differing across social contexts. This article contends that Townsend's definition is clearly inconsistent with Smith's work but entirely consistent with a passage by Wilhelm Schulz which established the term 'relative poverty' and asserted that people's material needs are proportionate to their nation's economic output per head; Karl Marx quoted that passage in a short piece that criticised Smith. A recent defence of Townsend's definition is its supposed international public endorsement in empirical studies of socially perceived necessities. A review of this evidence finds that publics, like Smith and British poverty researchers before Townsend – most notably Seebohm Rowntree – see the extent of material need as affected by social context but not proportionate to national average income. Publishing purely relative and absolute purchasing power poverty statistics together offers a way of portraying hardship levels that is balanced to reflect publics' more narrowly relative understanding of material needs. [ABSTRACT FROM AUTHOR]

A welfare state's tax system does not solely redistribute from rich to poor (vertical) but also between family types (horizontal). Different types of families are treated differently due to gendered (de)familialization policies in the tax code, such as joint filing for spouses or single-parent relief. In this study I aim to examine the tax system's modification of horizontal income inequality between the six most prevalent family types of non-retiree households. To answer my research aim I draw on harmonized data from 30 countries provided by the Luxembourg Income Study (LIS). I estimate pre- and post-fiscal income inequality measured as between-family-type Theil indices. Using multivariate linear regression, I examine the association of the percentage change in inequality and the prevalence of family type-related tax characteristics. The results show that welfare states with familialization tax policies reduce less horizontal income inequality compared to welfare states without familialization tax policies. As familialization tax policies provide additional benefits for breadwinners with dependents, they discourage labour market participation of secondary earners and might exacerbate gender inequalities. [ABSTRACT FROM AUTHOR]

This study examines the effects of an old-age allowance programme in Taiwan, the Senior Citizens Welfare Living Allowance (SCWLA), on intergenerational financial transfers, living arrangements and contact, as well as the heterogeneity of its effects by adult children's five types of motives for giving: altruism, exchange, reciprocity, affection, and sense of responsibility. Using 2002, 2004, 2005 and 2006 data from the Panel Study of Family Dynamics, we employed a difference-in-difference individual fixed effect model to compare the outcomes across the treatment (aged 65 and older) and comparison groups (aged 55 to 64) before and after the introduction of SCWLA. Our results indicate that SCWLA crowds in intergenerational contact but does not significantly change financial transfers and co-residence patterns. The increase in intergenerational contact is primarily driven by adult children having lower motives for giving. This suggests that old-age allowances may reduce financial entanglement between adult children and older parents and change the social norm by raising "low motivators'" awareness, respect and concern for elderly. Providing public transfer to the elderly should not be hampered by the fear of distorting family support functions. [ABSTRACT FROM AUTHOR]

The article presents the discussion on studies assessing engineering bottlenecks of automation. Topics include t digital technologies and artificial intelligence (AI) displacing a considerable number of work tasks in the coming decades; and implications of divergent employment scenarios for government budgets, poverty or economic inequality.

Previous research has shown a clear link between childhood disability and child poverty. This is related to the fact that parents of disabled children (1) need to provide more care, which impedes their employment participation; and (2) more often belong to disadvantaged social categories. However, the adverse relationship between childhood disability and child poverty can be cushioned by cash support systems. Hitherto, the literature lacks insight into how the receipt of different cash support systems is related to parental employment and social background, and what joint role these three factors play in understanding the poverty risk of these children. To fill this gap, a case study on Belgium is performed using unique and large-scale register data. The results show that disabled children have a lower income poverty risk than non-disabled children, even when parental employment and social background are taken into account. This can be explained by the targeted cash support disabled children receive. However, previous research showed that a substantial group of disabled children does not receive the benefit. Hence, more could be achieved if the non-take-up would be addressed, in particular among the most vulnerable children. [ABSTRACT FROM AUTHOR]

The debate about extending working lives in response to population ageing often overlooks the lack of employment opportunity for older adults with disabilities. Without work, their living standards depend heavily on government transfers. This study contributes to the literature on health inequalities by analysing the sources of income and poverty outcomes for people aged 50 to 64 in two liberal democratic countries yet with contrasting disability benefit contexts – Canada and the United Kingdom. This choice of countries offers the opportunity to assess whether the design of benefit systems has led the most disadvantaged groups to fare differently between countries. Overall, disabled older persons without work faced a markedly higher risk of poverty in Canada than in the UK. Public transfers played a much greater role in the UK, accounting for two-thirds of household income among low-educated groups, compared with one-third in Canada. The average benefit amount received was similar in both countries, but the coverage of disabled people was much lower in Canada than in the UK, leading to a high poverty risk among disabled people out of work. Our findings highlight the importance of income support systems in preventing the widening of the poverty-disability gap at older ages. [ABSTRACT FROM AUTHOR]

Britain's Household Benefit Cap restricts the amount of benefit income unemployed households can receive. In this article, it is examined using material held at the UK's National Archives recording debates about a proposal to introduce a similar policy – a benefit limit – in the first Thatcher Conservative government elected in 1979. It was rejected, but the Household Benefit Cap was introduced three decades later. The article locates debates about, and the practice of restricting benefit income, in perennial social security concerns with the financial incentive to do waged work. The article argues that while there are material differences that help explain the different policy outcomes in 1980 and 2010, they can primarily be explained by changing ideas about the roles of social security policy, including the development of the 'incentive paradigm' concerned with manipulating behaviour; a loss of concern with the hardship that would come with the introduction of a benefit restriction and a view that institutions other than the state are better placed to address poverty and buttress work incentives. [ABSTRACT FROM AUTHOR]

The Disability Support Pension (DSP) is the major Australian government financial benefit program for people of working age with medical conditions and disabilities that restrict work capacity. Between 2012 and 2018 a series of policy reforms sought to restrict the growth in DSP payments and encourage more people with some work capacity to seek employment. We characterise changes in three markers of access to disability financial support over the reform period (1) DSP recipient rates (2) DSP grant (approval) rates and (3) the rate of unemployment benefit receipt in people with impaired work capacity. Results demonstrate a significant reduction in DSP receipt and grant rates, and significant increase in the rate of unemployment benefit receipt in working-age Australians with work disabling medical conditions and disability. These changes were not distributed uniformly. People whose primary medical condition was a musculoskeletal or circulatory system disorder demonstrated greater declines in DSP receipt and grant rates, while there was a more rapid increase in unemployment benefit receipt among people with primary mental health conditions. Some trend changes occur in periods during which new disability assessment and pension eligibility policies were introduced, though our ability to attribute changes to specific policy changes is limited. [ABSTRACT FROM AUTHOR]