Means-Tested Transfer Programs in the United States

Means-Tested Transfer Programs in the United States

Author: National Bureau of Economic Research

Publisher: University of Chicago Press

Published: 2003-10-15

Total Pages: 224

ISBN-13: 9780226533568

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Few United States government programs are as controversial as those designed to aid the poor. From tax credits to medical assistance, aid to needy families is surrounded by debate—on what benefits should be offered, what forms they should take, and how they should be administered. The past few decades, in fact, have seen this debate lead to broad transformations of aid programs themselves, with Aid to Families with Dependent Children replaced by Temporary Assistance to Needy Families, the Earned Income Tax Credit growing from a minor program to one of the most important for low-income families, and Medicaid greatly expanding its eligibility. This volume provides a remarkable overview of how such programs actually work, offering an impressive wealth of information on the nation's nine largest "means-tested" programs—that is, those in which some test of income forms the basis for participation. For each program, contributors describe origins and goals, summarize policy histories and current rules, and discuss the recipient's characteristics as well as the different types of benefits they receive. Each chapter then provides an overview of scholarly research on each program, bringing together the results of the field's most rigorous statistical examinations. The result is a fascinating portrayal of the evolution and current state of means-tested programs, one that charts a number of shifts in emphasis—the decline of cash assistance, for instance, and the increasing emphasis on work. This exemplary portrait of the nation's safety net will be an invaluable reference for anyone interested in American social policy.


Modelling Unemployment Insurance

Modelling Unemployment Insurance

Author: Paola Potestio

Publisher: Springer Nature

Published: 2022-01-28

Total Pages: 182

ISBN-13: 3030913198

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This book examines unemployment insurance policy through a survey, taking stock of the theoretical work in the field of labor economics. It closely follows and assesses developments in the modelling of optimal unemployment insurance (UI) policies, beginning with the initial analytical findings produced in the second half of the 1970s. A main part of the survey is devoted to the two basic strands of analysis about, respectively, the optimal level of UI benefits and the optimal time profile of UI policy. The book has two different objectives. The first is to provide an essential summary of the individual models, with the intention of underscoring how a number of specific messages for the policy-maker can be derived from analytical constructions. It further emphasizes and comments on what the models deliver to UI policy-makers. The second objective is to stress the importance and extension of open questions in the field of the theoretical approach to the unemployment insurance issue. The survey discusses the multiplicity of heterogeneities of the labor world in particular as relevant for UI issues on the one side, and on the other hand, the independence of the two basic choices of UI policy, its meaning and its limits, and the possible forms of complementarity between these choices. The book is a must-read for researchers, students, and policy-makers interested in a better understanding of the field of labor economics in general, as well as unemployment insurance policies in particular.


Designing Labor Market Institutions in Emerging and Developing Economies

Designing Labor Market Institutions in Emerging and Developing Economies

Author: Mr.Romain A Duval

Publisher: International Monetary Fund

Published: 2019-05-21

Total Pages: 58

ISBN-13: 1498313264

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This paper discusses theoretical aspects and evidences related to designing labor market institutions in emerging market and developing economies. This note reviews the state of theory and evidence on the design of labor market institutions in a developing economy context and then reviews its consistency with actual labor market advice in a selected set of emerging and developing economies. The focus is mainly on three broad sets of institutions that matter for both workers’ protection and labor market efficiency: employment protection, unemployment insurance and social assistance, minimum wages and collective bargaining. Text mining techniques are used to identify IMF recommendations in these areas in Article IV Reports for 30 emerging and frontier economies over 2005–2016. This note has provided a critical review of the literature on the design of labor market institutions in emerging and developing market economies, and benchmarked the advice featured in IMF recommendations for 30 emerging market and frontier economies against the tentative conclusions from the literature.


Supply and Demand Effects of Unemployment Insurance Benefit Extensions: Evidence from U.S. Counties

Supply and Demand Effects of Unemployment Insurance Benefit Extensions: Evidence from U.S. Counties

Author: Klaus-Peter Hellwig

Publisher: International Monetary Fund

Published: 2021-03-12

Total Pages: 35

ISBN-13: 1513572687

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I use three decades of county-level data to estimate the effects of federal unemployment benefit extensions on economic activity. To overcome the reverse causality coming from the fact that benefit extensions are a function of state unemployment rates, I only use the within-state variation in outcomes to identify treatment effects. Identification rests on a differences-in-differences approach which exploits heterogeneity in county exposure to policy changes. To distinguish demand and supply-side channels, I estimate the model separately for tradable and non-tradable sectors. Finally I use benefit extensions as an instrument to estimate local fiscal multipliers of unemployment benefit transfers. I find (i) that the overall impact of benefit extensions on activity is positive, pointing to strong demand effects; (ii) that, even in tradable sectors, there are no negative supply-side effects from work disincentives; and (iii) a fiscal multiplier estimate of 1.92, similar to estimates in the literature for other types of spending.


Optimal Unemployment Insurance

Optimal Unemployment Insurance

Author: Andreas Pollak

Publisher: Mohr Siebeck

Published: 2007

Total Pages: 204

ISBN-13: 9783161493041

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Designing a good unemployment insurance scheme is a delicate matter. In a system with no or little insurance, households may be subject to a high income risk, whereas excessively generous unemployment insurance systems are known to lead to high unemployment rates and are costly both from a fiscal perspective and for society as a whole. Andreas Pollak investigates what an optimal unemployment insurance system would look like, i.e. a system that constitutes the best possible compromise between income security and incentives to work. Using theoretical economic models and complex numerical simulations, he studies the effects of benefit levels and payment durations on unemployment and welfare. As the models allow for considerable heterogeneity of households, including a history-dependent labor productivity, it is possible to analyze how certain policies affect individuals in a specific age, wealth or skill group. The most important aspect of an unemployment insurance system turns out to be the benefits paid to the long-term unemployed. If this parameter is chosen too high, a large number of households may get caught in a long spell of unemployment with little chance of finding work again. Based on the predictions in these models, the so-called "Hartz IV" labor market reform recently adopted in Germany should have highly favorable effects on the unemployment rates and welfare in the long run.


A European Unemployment Benefit Scheme

A European Unemployment Benefit Scheme

Author: Bertelsmann Stiftung

Publisher: Verlag Bertelsmann Stiftung

Published: 2014-03-01

Total Pages: 144

ISBN-13: 3867936005

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The recent euro crisis and the dramatic increase of unemployment in some euro countries have triggered a renewed interest in a fiscal capacity for the European Union to stabilize the economy of its member states. One of the proposed instruments is a common European unemployment insurance. In this book Sebastian Dullien from the HTW Berlin provides and evaluates a blueprint for such a scheme. Building on lessons from the unemployment insurance in the United States of America, he outlines how a European unemployment benefit scheme could be constructed to provide significant stabilization to national business cycles, yet without strongly extending social protection in Europe. Macroeconomic stabilization effects and payment flows between countries are simulated and options, potential pitfalls and existing concerns discussed.


Conditional Cash Transfers

Conditional Cash Transfers

Author: Ariel Fiszbein

Publisher: World Bank Publications

Published: 2009-02-09

Total Pages: 384

ISBN-13: 0821373536

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Conditional Cash Transfer (CCT) programs aim to reduce poverty by making welfare programs conditional upon the receivers' actions. That is, the government only transfers the money to persons who meet certain criteria. These criteria may include enrolling children into public schools, getting regular check-ups at the doctor's office, receiving vaccinations, or the like. They have been hailed as a way of reducing inequality and helping households break out of a vicious cycle whereby poverty is transmitted from one generation to another. Do these and other claims make sense? Are they supported by the available empirical evidence? This volume seeks to answer these and other related questions. Specifically, it lays out a conceptual framework for thinking about the economic rationale for CCTs; it reviews the very rich evidence that has accumulated on CCTs; it discusses how the conceptual framework and the evidence on impacts should inform the design of CCT programs in practice; and it discusses how CCTs fit in the context of broader social policies. The authors show that there is considerable evidence that CCTs have improved the lives of poor people and argue that conditional cash transfers have been an effective way of redistributing income to the poor. They also recognize that even the best-designed and managed CCT cannot fulfill all of the needs of a comprehensive social protection system. They therefore need to be complemented with other interventions, such as workfare or employment programs, and social pensions.


Integrating gender into the design of cash transfer and public works programmes – FAO Technical Guide 2

Integrating gender into the design of cash transfer and public works programmes – FAO Technical Guide 2

Author: Food and Agriculture Organization of the United Nations

Publisher: Food & Agriculture Org.

Published: 2018-11-01

Total Pages: 92

ISBN-13: 9251310394

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Many social protection programmes, including cash transfers, public works programmes and asset transfers, target women as main beneficiaries or recipients of benefits. Extending social protection to rural populations has great potential for fostering rural women’s economic empowerment. However, to tap into this potential, more needs to be done. There is much scope for making social protection policies and programmes more gender sensitive and for better aligning them with agricultural and rural development policies to help address gender inequalities. Recognizing this potential and capitalizing on existing evidence, FAO seeks to enhance the contribution of social protection to gender equality and women’s empowerment by providing country-level support through capacity development, knowledge generation and programme support.To move forward this agenda, FAO has developed the Technical Guidance Toolkit on Gender-sensitive Social Protection Programmes to Combat Rural Poverty and Hunger. The Toolkit is designed to support SP and gender policy-makers and practitioners in their efforts to systematically apply a gender lens to SP programmes in ways that are in line with global agreements and FAO commitments to expand inclusive SP systems for rural populations. The Toolkit focuses on the role of SP in reducing gendered social inequalities, and rural poverty and hunger.


Exploring Universal Basic Income

Exploring Universal Basic Income

Author: Ugo Gentilini

Publisher: World Bank Publications

Published: 2019-11-25

Total Pages: 325

ISBN-13: 1464815119

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Universal basic income (UBI) is emerging as one of the most hotly debated issues in development and social protection policy. But what are the features of UBI? What is it meant to achieve? How do we know, and what don’t we know, about its performance? What does it take to implement it in practice? Drawing from global evidence, literature, and survey data, this volume provides a framework to elucidate issues and trade-offs in UBI with a view to help inform choices around its appropriateness and feasibility in different contexts. Specifically, the book examines how UBI differs from or complements other social assistance programs in terms of objectives, coverage, incidence, adequacy, incentives, effects on poverty and inequality, financing, political economy, and implementation. It also reviews past and current country experiences, surveys the full range of existing policy proposals, provides original results from micro†“tax benefit simulations, and sets out a range of considerations around the analytics and practice of UBI.