Early retirement schemes and disability insurance in the Netherlands have undergone several reforms in recent decades. The reforms have increased incentives for older workers to continue working and have decreased the roles of “substitute pathways” into retirement. This article gives an overview of the reforms and, using administrative data for workers in the health care sector, tests a number of hypotheses about the labour market participation of older workers. The results offer two main findings: i) that the Dutch reforms have indeed been effective, as the labour force participation rate of older workers has increased; and ii) the concept of “substitute pathways” has become less relevant as the use of disability insurance has been closed off as an exit route to early retirement. Nevertheless, caution is required before generalizing the implications of these Dutch findings to other OECD countries.

Using an inventory of local and/or non‐statutory transfers (droits connexes) in 13 French towns and cities, the article first measures the gains from returning to work for recipients of national, statutory means‐tested benefits (Revenu minimum d'insertion— RMI, and Allocation parent isolé— API) by type of household before 2009. The reforms of national, statutory benefits carried out during the 2000s, especially those affecting the working tax credit (Prime pour l'emploi— PPE), failed to ensure that the recipients of means‐tested benefits always stood to gain financially from returning to work. The effects of the reforms were offset by the effects of other measures. The article then simulates the effects of the introduction of the Revenu de solidarité active (RSA) in place of the RMI in 2009, and takes into account the way that local and/or non‐statutory transfers are modified by increases in national, statutory transfers. We observe that the RSA eliminates the financial disincentives to returning to work for almost all localities and types of household. The article shows that the marginal tax rate of 38 per cent chosen by the government is very close to the upper limit compatible with a back‐to‐work incentive.

This article analyses the risk of disability facing workers who contribute to the Argentinian Integrated Social Security System (Sistema Integrado Previsional Argentino— SIPA). Using administrative records as our source of data for the period 2000‐2006, the results indicate that 1.46 workers per 1,000 became disabled annually during that period. The risk of disability rates were higher for men than for women, but increased with age for both sexes. The risk of disability rates have also been broken down by pathology and social security scheme, taking the effects of age and sex into account. To conclude, international comparisons are presented.

The aim of this article is to offer detailed information of the redistributive impact of social transfer programmes and taxes in 28 Member countries of the Organisation for Economic Co‐operation and Development, employing data that have been computed from the Luxembourg Income Study's micro‐level database. We find that welfare states on average reduce inequality by 35 per cent. Social benefits have a much stronger redistributive impact than taxes. As far as social programmes are concerned, public pensions account for the largest reduction in income inequality, although the pattern is diverse across countries. To a lesser extent, social assistance, disability and family benefits also contribute to smaller income disparities.

In 1997, Hungary and Poland led Central Europe in partially privatizing their national pension systems, diverting a portion of public pension contributions to privately‐managed individual investment accounts. In the aftermath of the global economic crisis, both governments retrenched these second‐tier schemes: Hungary (December 2010), by ceasing to fund the accounts and recouping most workers' existing balances; and Poland (April 2011), by reducing the diversion of contributions to the second tier. The factors that drove these retrenchments are traced to the original 1997 second‐tier designs, which omitted key specifications related to financing the accounts, private benefit design, and the regulation of private management fees. While both governments tried to compensate for the missing design specifications during implementation, the results were limited. By reducing investment returns and raising borrowing costs, the global economic crisis brought the problems to a head. The conclusion highlights some outstanding issues whose resolution will shape the retrenchments' long‐term impacts.

Using micro‐data for the year 2007, this article analyzes the effectiveness of Luxembourg's minimum guaranteed income (revenu minimum garanti — RMG) social assistance programme. First, we examine the effectiveness of the RMG by comparing the proportion of eligible households based on the different criteria for the years 2007 and 1986, and find that, in 2007, 5.5 per cent of households were eligible versus 3.75 per cent in 1986. A relaxation of the RMG's eligibility criteria implies that more low‐income households should have access to the RMG. As a second measure of programme effectiveness, the article estimates the extent of non‐takeup behaviour among those eligible for the RMG in 2007. It is found that just over 65 per cent of all households potentially entitled to the RMG do not claim. Regression analysis of the potential determinants of non‐takeup behaviour confirms the hypotheses derived from theoretical models in the literature, i.e. that rational motivation, such as the expected net utility from claiming, and stigma, play a major role in explaining levels of non‐takeup.

This article considers the implementation of a universal basic income, a neglected area in basic income research. We identify and examine three important practical bottlenecks that may prevent a basic income scheme from attaining the universal reach desired and proclaimed by its advocates: i) maintaining a population‐wide cadaster of eligible claimants ensuring full takeup; ii) instituting robust modalities of payment that reach all intended beneficiaries; and iii) designing an effective oversight mechanism in a policy context that actively opposes client monitoring. We argue that the implementation of universal basic income faces unique challenges that its proponents must consider carefully.

Most countries have separate pension plans for public‐sector employees. The future fiscal burden of these plans can be substantial as the government usually is the largest employer, pension promises in the public sector tend to be relatively generous, and future payments have to be paid out directly from government revenues (pay‐as‐you‐go) or by funded plans (pension funds) which tend to be underfunded. The valuation and disclosure of these promises in some countries lacks transparency, which may hide potentially huge fiscal liabilities to be passed on to future generations of workers. In order to arrive at a fair comparison between countries regarding the fiscal burden of their public‐sector pension plans, this article recommends that unfunded pension liabilities should be measured and reported according to a standard approach for reasons of fiscal transparency and better policy‐making. From a sample of Member countries of the Organisation for Economic Co‐operation and Development, the size of the net unfunded liabilities as of the end of 2008 is estimated in fair value terms. This fiscal burden can also be interpreted as the implicit pension debt in fair value terms.

Japan and the Republic of Korea achieved universal health insurance coverage for their populations in 1961 and 1989, respectively. At present, Japan continues to operate a multiple‐payer social health insurance system, while the Republic of Korea has moved to an integrated single‐payer national health insurance structure. This article analyzes the influence of political economy in shaping the policy divergence found between these two Bismarckian health insurance systems. Issues addressed include differences in political power, the policy influence of business, the extent to which regional autonomy has developed and regional traits have been preserved, the level of political democratization, the form of political leadership, and the scale of development of the health insurance system. The article offers policy lessons derived from the two countries' experiences.

One of the main challenges facing social policy in Latin American is to guarantee social security coverage for the entire population in the presence of a large informal sector. In Argentina, a regional pioneer in terms of the development of its pension system, more than one third of those of retirement age were without benefits in 2005. Since then, considerable progress has been made in extending coverage thanks to the introduction of a programme that has reduced contribution requirements and allocated benefits to a large number of seniors previously excluded from the system. This article analyzes the impact of this process in Argentina on the level and distribution of coverage, identifies changes in socio‐demographic factors which affect inclusion/exclusion in the social security system, and discusses remaining obstacles to the provision of universal coverage in the medium and long term.

The aim of this article is to establish basic guidelines to support the possible design of an information letter to be sent to individuals who contribute to the Spanish state pension system, should a decision ever be taken to adopt such an instrument. Basing our work on international experience and published research in the field, we look into the concept of “individual pension information” and identify its most relevant features. We then give detailed descriptions of two models for the provision of individual pension information (the United States and Sweden), looking in particular at how these are structured, what aspects could be improved and their limitations. Finally, we offer recommendations for the design of a model for Spain.

This article examines the timing of the introduction of four major social security programmes — work accident insurance, sickness benefits, pensions, and family allowances — in 43 African countries. Further, it explores whether legislative structure, dominant religion or the colonial past of the country is of importance when we control for year of independence, prosperity, degree of democracy, government stability, industrialization and the size and ethnic homogeneity of the population. On the basis of Cox hazard rate modelling it is concluded that industrialized, homogeneous and rather populous countries that were under French rule tend to be pioneers in African social security legislation.

In 2009, Argentina introduced a new transfer programme for children and adolescents younger than age 18 (Universal Child Allowance) that extended coverage under the contributory programme for family allowances to include families in the informal economy and families of unemployed persons. This article describes this innovative programme, compares it with similar programmes in Latin America and analyses its impact on coverage and its possible effects on the welfare of the population. The results indicate that the extension of access to this type of benefit has reduced considerably the coverage gap for the poor and indigent and supports efforts to consolidate the operations of different and poorly coordinated transfer programmes.

For a number of years, the Dutch, German and French health insurance systems have been attempting to contain costs and diversify their sources of finance, which traditionally have come mainly from social contributions. Diversification may involve broader‐based public finance, as well as greater recourse to private resources and operators. In the case of the Netherlands and Germany, the reforms go hand in hand with efforts to introduce competition between health insurance bodies. In France, private complementary insurance has become indispensable for adequate access to health care. However, these measures have repercussions for redistribution, which social assistance programmes have difficulty in addressing.

Over the last 30 years, Latin America has pioneered structural pension reforms. This article focuses on a representative regional sample of seven Central American countries with diverse levels of development (Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama) studying contributory and tax‐financed pensions as well as recent pension reforms. It comparatively assesses system performance regarding five social security principles: unity; universal coverage; adequacy of benefits; equal treatment, solidarity and gender equality; and financial sustainability. It also evaluates the impact of the world crisis on these pension systems, highlighting the differences between public and private pensions, and extracts lessons and suggests policies for the future.

Managing employer social insurance compliance is a particularly difficult governance challenge in emerging economies that have weak regulatory regimes. Utilizing qualitative evidence from eight case studies conducted in Shanghai, the People's Republic of China, this article details how employers respond to attempts by the State to manage social insurance behaviour. Five concerns arose from employers' perceptions and responses to the established policies and regulatory structures: construction of an effective policy, level playing field, cost control, firm reputation, and recruitment and retention. Further, the findings indicate that there are three enterprise features that could affect compliance behaviour: risk factors, skill composition of the workforce, and form of ownership. It was anticipated that firm size may affect compliance behaviour, but no clear pattern emerged.

There has been a marked development in the way that institutional investors address environmental, social and governance (ESG) issues in their investment practices. For public and private investors alike, these issues have now become part of mainstream investment practices, reflecting a greater understanding that they represent material risks and opportunities that must be addressed as part of fiduciary duty. Some ESG issues require an approach that goes far beyond the traditional simple screening approaches that the early niche funds employed. This is illustrated through a detailed discussion of investor practices on climate change, which must include an assessment of long‐term risks and opportunities and of the strategies that have been put in place to address these. It is also argued that as the role of policy and regulation is critical to shifting the economics in favour of low carbon investments, a structured dialogue between investors and policy‐makers is critical to ensuring that institutional capital is mobilized to support the policy goals of limiting climate change whilst still allowing investors to operate in line with their fiduciary responsibility.

Amongst all the topics addressed in the world of work, none, perhaps, reflect the principles of tripartism and social dialogue better than social security. It is natural, therefore, to ask how effectively these key instruments of sound governance have been and are being used in addressing significant challenges presently facing social security systems in many countries. The process of social security reform, notably in pension provision, has been high on the agenda of many countries in recent decades, reflecting the impact of factors such as globalization and demographic ageing. More recently, fresh strains have arisen as a result of the global financial and economic crisis. The International Labour Office (ILO) has sought to analyse and understand these questions, and the ILO Departments of Social Dialogue and Social Security have jointly undertaken studies both before and in the aftermath of the crisis. The evidence shows mixed outcomes. In a range of countries with strong traditions of effective social dialogue, their value has been reiterated. Disappointingly, however, in other countries, often under the pressures of severe economic strains and urgent demands of the international financial institutions (IFIs) and other agencies, governments have acted unilaterally, sometimes with rather little heed of constitutional responsibilities. The authors conclude that there is both the need and scope for a renewed focus to secure an appropriate degree of political will and commitment to the process of tripartite social dialogue in addressing what are often complex and sensitive policy issues in the field of social security.

Governments in many countries are redefining policies and strategies in order to respond to the profound and growing social security needs of their citizens. Good governance in social security administration is indispensable to achieve the desired results because new policies and strategies can only be as good as their implementation. The article focuses on good governance at two levels of authority: i) the social security organization, and ii) national Government. At the level of a social security organization, we discuss a stylized governance framework that provides an overview of what is involved in the implementation of a social security programme. The discussion is elevated to the national level in order to focus on the governance of a social security system. From a governance point of view, this article underscores the primary role of governments to facilitate national consensus on the overall objectives of the country's social security system. It argues for the designation of a national authority on social security to ensure the coherent implementation and development of the various programmes that comprise the country's social security system. Greater synchronization of social security policy with employment and labour market policies is important to ensure positive synergies and joint effectiveness in providing access to work opportunities in the formal sectors of the economy, which is key to tackling poverty and social exclusion and to enabling the poor greater access to more comprehensive forms of social security protection. Good governance will better ensure the sustained and lasting contribution of social security to national economic growth and development.

Using survey evidence collected from social security organizations and contribution collection agencies, a major aim of this article is to advance knowledge sharing and good practice on contribution collection and the enforcement of compliance. Although contribution collection and compliance have important social protection, political and fiscal dimensions, this article frames the pursuit of these objectives as an aspect of administrative good governance. The evidence suggests that seven core factors combine often to form the basis of success in contribution collection and compliance. In addition to improving benefit adequacy and the financial health and public standing of programmes, such success may support also national and international efforts to extend social protection coverage. Ultimately, the achievement and scale of any such success may be determined and delimited by the broader national policy environment, over which most social security organizations have little or no influence.