Government transfers smoothed the spike in inequality during the pandemic

Keyword(s):  
2021 ◽  
pp. 1-21
Author(s):  
WEN-HAO CHEN ◽  
LEE BENTLEY ◽  
MARGARET WHITEHEAD ◽  
ASHLEY MCALLISTER ◽  
BENJAMIN BARR

Abstract 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.


Author(s):  
Bonifasia Elita Bharanti

The structure of Regional Development Budget (hereafter APBD) of Papua Province, which is mostly sourced from  Government transfers tends to increase every year. This requires prioritising the use of capital expenditure that can improve the welfare of the community. However, it is an irony that the poverty rate in Papua Province ranks first in Indonesia as indicated by the Human Development Index (HDI), below the national average HDI. The objective  to analyse the structure of the APBD (General Allocation Fund - hereafter DAU, Special Allocation Fund - hereafter DAK and Revenue Sharing Fund - hereafter DBH) and financial performance of Papua's Human Development Index in 2013-2018 with capital expenditure as an intervening variable. Quantitative approach is used with secondary data type, which is processed using the IBM SPSS Amos application.  This study indicate that the increasing APBD structure will be able to increase the HDI but capital expenditure does not mediate the APBD structure to the HDI. Furthermore, financial performance has no impact on increasing the HDI as the capital expenditure does not mediate financial performance on the human development index.


2017 ◽  
Vol 1 (2) ◽  
pp. 172-184
Author(s):  
Nurma Sari

This paper discusses a descriptive charity as fiscal policy during the caliphate of Umar. Zakat has a major position in fiscal policy in the early days of Islam. Besides, as a source of major revenue Islamic state at the time, zakat is also capable of supporting both state spending in the form of government expenditure (expenditure countries) and government transfers (transfer expenses). Zakat is also able to influence the economic policy of the Islamic government to improve the welfare of the people, especially the weak. It was in because zakat is the source of funds that will never dry out.Tulisan ini membahas secara deskriptif zakat sebagai kebijakan fiscal pada masa kekhalifahan umar bin khatab. Zakat mempunyai kedudukan utama dalam kebijakan fiskal pada masa awal islam. Disamping sebagai sumber pendapatan Negara Islam yang utama pada masa itu, zakat juga mampu menunjang pengeluaran Negara baik dalam bentuk government expenditure (pengeluaran belanja negara) maupun government transfer (pengeluaran transfer). Zakat juga mampu mempengaruhi kebijakan ekonomi pemerintah islam untuk meningkatkan kesejahteraan rakyat terutama kaum lemah. Hal itu di karenakan zakat adalah sumber dana yang tidak akan pernah kering dan habis.


Author(s):  
Lane Kenworthy

Abstract: The experience of the affluent democratic nations over the past half century hasn’t been kind to the hypothesis that a small-government approach can do as well as social democratic capitalism. Countries with smaller government haven’t achieved faster economic growth. Families and voluntary organizations sometimes are less effective and efficient than government programs, they by nature aren’t comprehensive in coverage, they’ve been weakening over time, and they are nearly or equally as prominent in nations with a big government as in those with a smaller one. Private provision of services should be welcomed, even embraced, but it is most effective as a complement to public provision rather than a substitute. Relying on heavily targeted government transfers may be politically sustainable only in a country with a strong egalitarian ethos, such as Australia, and even there it hasn’t matched the success of social democratic capitalism.


2020 ◽  
Author(s):  
Lars P Feld ◽  
Christoph A Schaltegger ◽  
Janine Studerus

Abstract This paper analyses the importance of fiscal mechanisms for regional stabilization and redistribution in Switzerland. Switzerland is particularly interesting in this context because it features both a high level of fiscal autonomy for Swiss cantons, and explicit fiscal transfers between the federal government and the cantons. Based on a panel data analysis, we study the redistributive and stabilizing properties of fiscal equalization transfers, federal government transfers in general, direct federal taxation, the unemployment insurance scheme, and the first pillar pension scheme. We find a combined redistributive effect of these mechanisms of about 20%. This means that long-run income differentials of 1 Swiss franc between cantons translate into differences of long-run disposable income after taxes and transfers of about 80 cents. The combined contemporary stabilization effect with respect to short-term income fluctuations amounts, at best, to 10%, which is a small effect compared to previous findings for other countries.


2018 ◽  
Vol 10 (5) ◽  
pp. 1599 ◽  
Author(s):  
Fan Li ◽  
Wenche Wang ◽  
Zelong Yi

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