Achieving universal pension coverage is both an aspiration and a challenge for many developing economies. Traditional contributory schemes are less effective in extending pension coverage to workers who are not in the formal sectors of the economy. As an alternative, non-contributory schemes have gained popularity in recent years. China’s pension reforms mirror this global trend. The introduction of a contribution-based pension scheme for urban employees (Employees’ Pension) was followed by a scheme for rural and urban residents (Residents’ Pension), which is partly government financed and partly contributory, with multiple options for premium payment. This study uses nationally representative survey data collected in 2016 to compare the inclusiveness of the two schemes. It finds that access to the Residents’ Pension scheme is more equal than the Employees’ Pension. Lower status workers in terms of education, employment, income and hukou-migration are more likely to participate in the Residents’ Pension as opposed to the Employees’ Pension, compared with higher status workers. The Chinese experience suggests that a workable solution for pension extension in low- and middle-income countries is to have a scheme that is flexible, affordable and responsive to the diverse needs of the population.

China has made a number of major changes to its pension system in the period 2014–2020, and is in the process of establishing a multi-tier old-age pension system, consisting of programmes provided by the government, voluntary programmes provided by enterprises, and voluntary programmes established by individuals. Policy objectives are to reduce the fragmentation in its pension system; deal with population ageing; and diversify risks by involving the government, enterprises as well as individuals. This article shows that while China has a complex system for urban workers, the coverage provided by its multi-tier system is uneven, with the second and third tiers being in the early stages of development.

The Chinese social security system has been the subject of numerous publications, which have made policy developments more accessible to researchers and administrators from all countries. However, the steps introduced in response to growing demands for intervention by the authorities in favour of dependent persons have remained poorly documented in the international literature. The purpose of this article is to take stock of pilot experiments in this field since the beginning of the 13th Five-Year Plan (2016–2020) with regard to their policy objective, operating mode and financing modalities.

This article reviews administrative issues in the context of decentralized social protection in China. In particular, what are the main obstacles for expanding social insurance coverage for workers in the informal economy? Over the last two decades, China has achieved remarkable progress towards universal social protection when this target was set as a national policy priority. However, the social insurance enrolment of informal economy workers still lags significantly behind. This article reviews the application of the International Labour Organization’s definition of informality in the Chinese context and overviews existing pension and health insurances in China. This article discusses the impact of China’s inter-governmental fiscal relations and decentralized social protection in the multilevel government system. The article highlights that under a system of decentralized managed social insurance many informal sector workers choose to opt out of the system because of low benefits and high compliance costs. This result in deficits in social insurance coverage amongst informal economy workers.

This article examines the sustainability of China’s Urban Employees’ Pension Programme – the main component in China’s overall old-age support system. It looks at the sustainability of the programme generally and, in particular, at case studies of two areas (Tianjin municipality and Guangxi province) to highlight both the extent of regional variations and the common challenges facing Chinese policy-makers. It discusses a number of key issues that should assist policy-makers to address the challenge of population ageing. It concludes that the challenge facing China is no more severe than that already faced by other countries in Europe and Asia. Moreover, the ageing of the population is not uniform across the regions of China. Consequently, those areas where the demographic shift is more advanced will provide some opportunity for policy experimentation. Given the experience to date of slow progress on various aspects of pension policy reform, the article suggests that it seems unlikely that paradigmatic change will be significant. Nonetheless, the study suggests a range of parametric policy measures that should be considered by China. The challenge facing China’s policy-makers is to ensure that China gets old and rich at the same time.

Using unique data on the contribution base, we investigate under-insurance within the statutory pension scheme for self-employed workers in Finland. Under-insurance is defined as the difference between pension-declared income and tax-declared income. The trajectory modelling technique applied has allowed us to estimate the levels of under-insurance for different subgroups and to identify possible explanatory factors. Under-insurance is found to be persistent and large. The analysis reveals six distinctive and homogenous sub-groups of self-employed workers. Close to 84 per cent of these workers pay too little in contributions, often leading to inadequate protection against personal risks. Especially for lower-income self-employed workers, this points to myopic behaviour as regards contributing to the self-employed statutory pension scheme and calls for fine-tuned economic incentives.

Rapid economic growth, declining fertility and changes in family structures have encouraged the Kingdom of Cambodia to reform its old-age pension system. The Government of Cambodia reached an important milestone in 2019, when the Law on Social Security was promulgated. The Law includes provisions for a compulsory defined benefit pension scheme, establishing a sound framework for extending compulsory pension coverage beyond the public sector to formal private-sector workers. As a future step, the compulsory pension scheme should be extended to informal workers. To accompany the reform, the investment policy for the pension scheme’s reserve funds, including the supervisory regime and investment strategy, will be essential for the modernization of the Cambodian social security system. In this regard, Cambodia has successfully sought policy advice. However, the country should continue to seek further advice, and to act on this. Otherwise, the necessary and increasingly pressing policy ambitions of Cambodia to develop an adequate and sustainable social protection system may not be fully realized.

Universal Credit has been rolled out gradually in the United Kingdom since 2013 as one integrated means-tested benefit replacing six different transfers with a single monthly payment. Previously, these benefits were awarded for distinct purposes and, for couples who claimed them, were potentially payable to different partners. Concerns about Universal Credit’s single payment include the opportunities it may create for facilitating domestic abuse, the fostering of more unequal power relations within couples, the reduction of financial autonomy for individuals, and the de-labelling of benefit payments. This article explores debates about the prospects for individual payments to partners in couples of Universal Credit as a jointly assessed integrated means-tested benefit, including different approaches emerging from the United Kingdom’s devolved governments (mainly Scotland and Northern Ireland). Whilst payment to each partner is likely to be more feasible where there are separate rather than integrated means-tested benefits, it concludes that genuine financial autonomy for partners in couples is best pursued via individually based non-means-tested benefits.

In a world of competing flag States and short-term employment, enjoying the benefits provided by a social security system is a difficult, if not impossible, task for many seafarers. The Maritime Labour Convention, 2006, has abandoned the flag State principle in favour of the residence principle for that reason. This article addresses the implementation challenges of this approach by examining the European Union case, and highlights the advantages of the residence principle in terms of administrative efficiency and effectiveness, enhanced coordination between social security contributions and personal income tax in cross-border situations, and better use of State aid measures.

This article describes the differential mortality of Argentina’s disability pension beneficiaries during the 2015–16 period, based on National Social Security Administration (Administración Nacional de la Seguridad Social – ANSES) payment records. It compares data for those with an assessed disability with overall population data, as well as with available international data (from Canada, Chile, Mexico, and the United States of America). In addition to breaking down mortality rates for people with disabilities by age and sex, it also factors in duration of benefit, establishing an inverse correlation between benefit duration and mortality.

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.

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.

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.