This special issue selectively addresses the relationship linking social security systems, inclusive growth and social cohesion. Inclusive growth and social cohesion are viewed as political expedient and necessary goals for national economies. The desirability of their attainment reflects political pragmatism, the “social contract”, as much as it does a commitment to the wider emancipative goal of social justice. The International Social Security Association (ISSA) has often paraphrased these assertions to argue that there can be “no social justice without social security”. Of course, progress achieved towards the realization of the goals of inclusive growth and social cohesion should be equally beneficial for the adequacy, sustainability and coverage of social security systems. The aim of this special issue is to unpack and better understand the nature of this relationship.

Social protection and revenue collection are often regarded as potential drivers of social cohesion. The article joins this debate, providing three main contributions. First, we carefully discuss the concept of social cohesion and endorse one specific definition. Second, we propose using the concept of the “fiscal contract” as the key theoretical lens to understand the often neglected potential joint effects of social protection and revenue collection policies on social cohesion. Third, we illustrate three main mechanisms through which these policies can have positive or negative impacts on the different components of social cohesion and highlight how relevant it is for policy-makers to carefully think about these.

China has adopted an array of special social security measures in response to the spread of the COVID-19 virus, to mitigate the downside social and economic impacts caused by the pandemic. Measures include the reduction, exemption and deferral of social security contributions by employers, the extension of benefits coverage for employees, and the provision of more accessible e-services by social insurance agencies. The article points out that a preliminary assessment of those measures would suggest that they have played a key role in supporting social cohesion and in stabilising the economy. In a critical manner, the article compares the measures adopted in China with those of other countries, and identifies how China could learn from international practice and experience. Finally, and based on recent Chinese experience, the article presents proposals that seek to improve the longer-term contribution made by the Chinese social security system to realise the goals of social cohesion and inclusive economic development. As set out in China’s Social Insurance Law of 2010, the social security system should not only support a fair sharing of benefits of development, but also promote social harmony and stability.

The expansion of social assistance in low- and middle-income countries raises important issues for inclusive growth. Labour is by far the principal asset of low-income groups. Changes in the quantity, quality, and allocation of labour associated with social assistance will impact on the productive capacity of low-income groups and therefore on inclusive growth. The article re-assesses the findings reported by impact evaluations of social assistance in low- and middle-income countries to address this issue. Most studies have tested for potentially adverse labour supply incentive effects from transfers but have failed to find supportive evidence. The article highlights findings from this literature on the effects of social assistance on human capital accumulation and labour reallocation. They point to the conclusion that well-designed and well-implemented social assistance contributes to inclusive growth.

The large increase in Eastern European migrants entering the Dutch labour market has led to concerns about their potential claim on Dutch unemployment benefits. We use a decomposition analysis to investigate differences in uptake of unemployment benefits between migrants and native Dutch employees by analysing register data for all employees in the Netherlands in 2015. The results show that Eastern European migrants, similar to other migrants, receive unemployment benefit more often than native Dutch employees. This difference can be largely ascribed to job characteristics. The inclusion of unemployment risk in the analysis reveals that non-working migrants are much less likely to receive unemployment benefits than Dutch natives.

In this article, we study how social expenditure is related to poverty, income inequality and GDP growth. Our main contribution is to disentangle these relationships by the following social expenditure schemes: 1) old age and survivors, 2) incapacity, 3) health, 4) family, 5) unemployment and active labour market policies and 6) housing and others. For this purpose, we employ OLS and 2SLS regression models using a panel data set for 22 Member States of the European Union from 1990 until 2015. We find total public social expenditure to be negatively related to poverty and inequality, but not related to GDP growth. The results vary substantially between the different social expenditure schemes, which makes more accurate targeting possible.

China’s pension reform during the past three decades has allowed a majority of China’s population to be covered by a pension scheme. Of particular note has been the New Rural Pension Scheme (NRPS), a voluntary programme introduced starting in 2009. One goal of our analysis is to assess that pension scheme, using a variety of sources of information including data drawn from recent (2013 and 2015) nationwide China Health and Retirement Longitudinal Surveys (CHARLS). Our analysis involves an exploration of differences between the generosity and structure of the NRPS and other pension schemes currently in place. We also explore the feasibility of reforming the current “quasi-social pension” component of the NRPS by substituting a universal non-contributory social pension pillar. In connection with our assessment of the NRPS, we note the unusually low benefit levels for rural China.

The objective of this article is to analyse the performance of Ecuador’s pension system and the challenges it will face in the future. Over the last 13 years, the pension system has made significant advances in terms of coverage and adequacy. However, demographic ageing is straining the financial sustainability of the contributory scheme. In this context, a number of public policy areas are identified, in terms of parameters and structures, which, together with the expansion of non-contributory coverage, could provide a more equitable and sustainable scheme.

This article investigates to what extent instrument substitution between early exit pathways took place in Europe between 1995 and 2015. Using Eurostat aggregate data on labour market inactivity and employment rates among the population aged 55–64 in 19 European countries, we analyse substitution effects between pathways and overall spill-over effects into non-employment. In spite of a strong decline in early exit and rises in older workers’ employment rates, findings suggest that instrument substitution was common especially between early retirement and disability. Reductions in early exit coincided with considerable spill-overs into non-employment, yet these spill-overs were limited when pathways contracted simultaneously.

This article reviews practices in the United States (US) federal-state unemployment insurance (UI) system regarding applicant eligibility, benefit generosity, benefit financing and emergency measures with the aim of revealing lessons for a possible European unemployment benefit system (EUBS) for European Union (EU) Member States. We overview the US system for UI and examine important areas of federal leadership. While the US system offers some good ideas for setting up an EUBS, there are also lessons in some shortcomings of the US experience. We overview existing national UI systems in the EU and review the debate on an EUBS in the EU. We identify areas of risk for individual and institutional moral hazard in a multi-tiered UI system and give examples of monitoring methods and incentives to ameliorate such risks. We suggest approaches for gradual system development, encouraging lower-tier behaviour, benefit financing, and responses to regional and system-wide labour market crises.

The effective implementation of social protection interventions is key for achieving positive change. The existing literature mainly focuses on issues related to programme design and impact, rather than the factors that influence the emergence, expansion and provision of these programmes. This article builds on the recent literature that indicates that the quality of institutions and people’s preferences play an important role in the implementation of social protection. It does so by using Ethiopia and its Productive Safety Net Programme – one of the largest social protection programmes in sub-Saharan Africa – as a case study, thereby contributing to debates on how to implement social protection more effectively, particularly in settings of widespread poverty and relatively low levels of institutional capacity. Based on primary qualitative data, the article finds that greater institutional quality at the local level is associated with the more effective provision of social protection. The ability of community members and social protection clients to voice preferences can lead to adaptations in implementation, although the extent to which this occurs is highly gendered.

Based on data received from pension supervisory authorities, the article reviews 85 different pension schemes in 44 jurisdictions by looking at fees and charges as well as their legal ceilings and their development since 2014. A key finding is the observed decrease in fees and caps. The article presents jurisdictions according to clusters, i.e. by groups of countries with identical or very similar items already covered by pension fees, and analyses the extent to which various cost and fee elements are covered by fees charged to members. Finally, we calculate charge ratios for each cluster to quantify the impact of fees and charges on pension savings. Occupational defined contribution pension schemes and personal plans linked to employment tend to be much more cost effective than personal schemes that have no direct employment link.

The Royal Government of Cambodia recently launched its National Social Protection Policy framework to strengthen and expand social security and assistance. To inform social health protection policy, we examine socio-economic survey data and administrative coverage data to assess the coverage potential of existing coverage mechanisms and current gaps; and compare equitable contribution rates. Over 53 per cent of the population currently has no social health protection coverage mechanism, and about 16 per cent of the population who do have access to a mechanism is not yet enrolled. Current expansion efforts focus on the formal employee scheme, primarily benefiting individuals from higher income households. In addition, recent coverage expansion to some informal workers leaves significant gaps, particularly among the informal sector. We find out-of-pocket health care expenditure to be an excessive share of income among lower wealth quintile individuals and conclude they are financially vulnerable. Finally, we illustrate that an equitable approach to individual, monthly health care contributions among the lower three quintiles has a severely limited potential for revenue generation, and collection costs could exceed the amount collected. Therefore, we recommend that vulnerable groups should be exempted from contribution payments as social health protection is expanded.

The importance of the cross-border portability of social benefits is increasing in parallel with the rise in the absolute number of international migrants and their share of the world population, and perhaps more importantly with the much higher and rising share of the world population that for some part of their life is working and/or retiring abroad. This article estimates how the rising stock of migrants is distributed over four key portability regimes ranging from portability through bilateral social security arrangements to undocumented workers with no access to any scheme. The comparison of estimates for 2000 and 2013 indicate a modest but noticeable increase in the share of migrants under regime I (full portability) by 1.4 per cent, but the biggest change occurred under regime III (no access to social security but also no contributions required), which almost doubled to 9.4 per cent. Regime II (potential exportability without totalization) reduced by 3.0 percentage points but remains the dominant scheme (at 53.2 per cent). The estimates suggest that the scope of regime IV (informality) reduced by 2.9 percentage points, accounting for 14.0 per cent of all migrants in 2013. This trend is positive, but more will need to be done to progress on benefit portability and various potential solutions lie outside bilateral agreements that are difficult to establish.

Twenty years ago, the International Social Security Review published an article that introduced a new term to the vocabulary of development and social protection: Microinsurance. Now, twenty years later, it is suitable to take stock of the contribution of microinsurance towards promoting coverage and social security. The article reviews the main insights gained from 20 years of implementation, including a clear expression of the value proposition of health microinsurance, understanding the demand for microinsurance, the business process for successful implementation, and conditions that must be satisfied for scaling and sustainable operations. It also explains the context that led to a considerable divergence in the microinsurance space. The article offers a discussion of unresolved issues and thoughts about the future of microinsurance. The conclusion of this article is that microinsurance can flourish when the necessary four pillars for its implementation exist, namely mainstreaming through political support, enhanced insurance literacy of the customers, technical assistance to self-administer the schemes, and availability of seed capital. The sufficient additional condition is that customers perceive microinsurance as offering welfare gains that cannot be obtained by other means.

Since the 1980s, many Latin American countries have tightened access to contributory pensions, with financial sustainability being a main concern. Studies suggest that a sizable share of contributors would not be able to comply with stricter access conditions, since observed contribution densities were low. While most Latin American countries lack complete work history records, the observed density of contributions offered strong evidence of short contribution histories, in particular for low-income workers and women. In the last decade these facts drove a new wave of reforms, in the form of less demanding eligibility requirements to access pensions and the need for a gender perspective. Uruguay took part in both processes, increasing vesting period conditions in 1996, then lowering them and granting childcare credits in 2008. In this article, we analyse the effects that less strict eligibility requirements would have on pension entitlements in Uruguay, estimating complete contribution histories using administrative records. Work history records have been kept since April 1996 only, meaning there are still no complete work histories. The study finds that pension rights would increase, in particular for women. The main effect would be driven by the lower contribution requirement. In addition, childcare credits would further reduce the gender gap in terms of access to benefits. The case of Uruguay is relevant in the regional context, as most Latin American countries are ageing rapidly and can learn from the Uruguayan experience, a country with vital statistics closer to those of developed countries. Also, recent reforms in the region show shared concerns on pension rights and the gender gap.

Over the past decade, the use of biometric technology in the identification and authentication of beneficiaries of social protection programmes has increased. However, there has been little debate among governments, donors and civil society organizations on the potential implications of this technology in relation to the inclusion of the most vulnerable sectors of the population, as well as for security and the protection of privacy and personal data. This article aims to fill that gap. First, the article reviews how biometric technology is used in various social protection programmes around the world. Then, it examines the potential risks and challenges of deploying biometric technology in social protection programmes. Finally, it assesses the requirements necessary to ensure that biometric technology is implemented in compliance with international law standards. The focus is on developing countries, where the use of biometric technology in identification systems has increased considerably in recent years. Among the key conclusions of the article is that the adoption of biometric technology, often encouraged by donors, needs to be preceded by democratic debate where all alternatives are discussed. The adoption of this technology should be accompanied by a context-specific assessment of risks, and the adoption of an appropriate legal and institutional framework to protect rights and ensure that the most vulnerable and disadvantaged members of the population are not excluded.

The starting point of this study is the implementation of seemingly similar youth-oriented labour market policies in Greece and Portugal. Both countries have suffered high youth unemployment rates and have been pressured to restructure their labour market as part of the rescue programmes adopted during the European sovereign debt crisis. Despite convergence in terms of policy trajectories, there is a significant divergence in employment outcomes. In Portugal, youth-oriented policies were better-targeted and structured. Their implementation has been more effective and has involved the social partners from the outset of the crisis. In Greece, policy design failures, administrative weaknesses and unfavourable macroeconomic conditions have limited the dynamics of youth-oriented policies thus increasing youth insecurity. Τhis antithesis suggests that convergence in policy content can be compatible with divergence in terms of outcomes.

In 1997, Mexico replaced its main old-age pension system with an individual capitalization system. In 2021, the first people subject to the new system will retire. Using a model that projects demographic and labour variables and using Monte Carlo simulations, the findings of this study show that in 2051 the percentage of men not having a pension will increase from 38 per cent to 59 per cent, and that of women from 44 per cent to 66 per cent. The replacement rate for the average Mexican worker will fall from 70 per cent to 30 per cent. The numbers of people in extreme poverty will increase by almost 2.8 million, representing 9.44 per cent of the population. Alternative scenarios are proposed that involve increasing the contribution rate and raising the retirement age.

The digitization of the economy can be interpreted as an industrial revolution, a series of technological innovations associated with new practices and new business models. As for previous industrial revolutions, a phase involving the destruction of existing systems and structures is driving a profound transformation of the world of work and the development of new sectors of activity and new jobs, including changes in the labour market and in the types of jobs created. This puts into question the position of the middle classes, and presents new challenges for social protection. This article seeks to understand the impacts of digital technology on the economy and employment, including the phenomena of labour market polarization. It describes the new forms of employment and work and analyses the social risks and the likely ramifications for the middle classes in the digital age. In turn, new possibilities for social protection in the digital age are discussed. The article concludes that there is a need to re-evaluate jobs that involve the provision of personal and care services, including to support social investment, to strengthen the future prospects of the weakened middle classes.