Human Capital, Multiple Income Risk and Social Insurance

Remittances are a significant source of foreign exchange for developing economies. I argue that remittances, due to their compensation and insurance functions, will increase the general income level and economic security of recipients, thereby reducing their perceived income risk. Over time, this will dampen demand from recipients for government taxation and social insurance. Therefore, I expect increases in income remitted to an economy to result in reduced levels of social welfare transfers at the macro-level. This dynamic can help us to understand spending patterns in developing democracies, and the absence of demand for social security transfers in countries with high levels of inequality and economic insecurity. I test this argument with a sample of 18 Latin American states, over the period 1990 to 2009, and subject the central causal mechanism to a battery of statistical tests. The results of these tests provide strong support for this argument.

Download Full-text

Uncertainty and the double dividend hypothesis

Environment and Development Economics ◽

10.1017/s1355770x08005147 ◽

2009 ◽

Vol 14 (5) ◽

pp. 565-585 ◽

Cited By ~ 5

Author(s):

EFTICHIOS S. SARTZETAKIS ◽

PANAGIOTIS D. TSIGARIS

Keyword(s):

Social Insurance ◽

Tax Reform ◽

Developed Countries ◽

Double Dividend ◽

Critical Parameters ◽

Tax Rates ◽

Income Risk ◽

Green Tax Reform ◽

Labour Income ◽

Lump Sum

ABSTRACTThis paper examines the double dividend hypothesis in the presence of labour income uncertainty. Empirical evidence shows that uncertainty over labour income is particularly significant in developing, while not negligible in developed countries. Under uncertainty, and assuming incomplete capital markets, the tax system plays a role in providing social insurance, and a green tax reform influences its effectiveness. We show that the increase in environmental tax reduces consumption risk, while the balanced budget decrease in labour income tax increases income risk. We find that the total welfare effect of a green tax reform differs substantially from the case of certainty. The critical parameters determining the existence of a second dividend are the lump-sum transfers, the relative substitutability of the two goods for leisure, and the initial tax rates relative to their optimal that determine also the response of labour supply to a change in the tax mix.

Download Full-text

Partisan Politics, the Welfare State, and Three Worlds of Human Capital Formation

Comparative Political Studies ◽

10.1177/0010414007313117 ◽

2008 ◽

Vol 41 (4-5) ◽

pp. 600-637 ◽

Cited By ~ 303

Author(s):

Torben Iversen ◽

John D. Stephens

Keyword(s):

Human Capital ◽

Public Education ◽

Social Insurance ◽

Private Investment ◽

Capital Formation ◽

Partisan Politics ◽

Regime Theory ◽

Human Capital Formation ◽

Power Resources ◽

Distinct Character

The authors propose a synthesis of power resources theory and welfare production regime theory to explain differences in human capital formation across advanced democracies. Emphasizing the mutually reinforcing relationships between social insurance, skill formation, and spending on public education, they distinguish three distinct worlds of human capital formation: one characterized by redistribution and heavy investment in public education and industry-specific and occupation-specific vocational skills; one characterized by high social insurance and vocational training in firm-specific and industry-specific skills but less spending on public education; and one characterized by heavy private investment in general skills but modest spending on public education and redistribution. They trace the three worlds to historical differences in the organization of capitalism, electoral institutions, and partisan politics, emphasizing the distinct character of political coalition formation underpinning each of the three models. They also discuss the implications for inequality and labor market stratification across time and space.

Download Full-text

MODERNIZATION OF THE SYSTEM OF TARGETED BENEFITS FOR FAMILIES WITH CHILDREN AS A FACTOR IN IMPROVING THE QUALITY OF HUMAN CAPITAL AND ECONOMIC GROWTH IN THE RUSSIAN FEDERATION

Научные труды Вольного экономического общества России ◽

10.38197/2072-2060-2021-229-3-281-292 ◽

2021 ◽

Vol 229 (3) ◽

pp. 281-292

Author(s):

PAVEL D. ROMAIKIN ◽

Keyword(s):

Social Support ◽

Economic Growth ◽

Human Capital ◽

Statistical Analysis ◽

Russian Federation ◽

Social Insurance ◽

Economic Situation ◽

The Russian Federation ◽

Families With Children

The paper describes the characteristics of human capital as the most important factor of economic growth. The problem of improving the quality of human capital in the conditions of the critical socio-economic situation of families with children in the Russian Federation is raised. The review of the existing mechanism of social support for families with children is carried out and its inconsistency with the existing challenges is revealed. Based on legal and statistical analysis, proposals are formulated for the creation of a targeted benefit for children under 18 years of age and its inclusion in the system of compulsory social insurance.

Download Full-text

Human capital, trade liberalization, and income risk

10.1596/1813-9450-4276 ◽

2007 ◽

Cited By ~ 1

Author(s):

William Maloney ◽

Pravin Krishna ◽

Tom Krebs

Keyword(s):

Human Capital ◽

Trade Liberalization ◽

Income Risk

Download Full-text

Trade, Human Capital, and Income Risk

SSRN Electronic Journal ◽

10.2139/ssrn.3998785 ◽

2021 ◽

Author(s):

Liuchun Deng ◽

Pravin Krishna ◽

Mine Zeynep Senses ◽

Jens Stegmaier

Keyword(s):

Human Capital ◽

Income Risk

Download Full-text

Non-standard employment in Kazakhstan as an object of structural modeling

Economic Annals-ХХI ◽

10.21003/ea.v184-13 ◽

2020 ◽

Vol 184 (7-8) ◽

pp. 154-160

Author(s):

Assiya Atabayeva ◽

◽

Tatyana Pritvorova ◽

Elmira Syzdykova ◽

Aigerim Lambekova ◽

...

Keyword(s):

Human Capital ◽

Social Inequality ◽

Social Insurance ◽

Social Protection ◽

Structural Model ◽

Structural Equations ◽

Factors Affecting ◽

State Employment ◽

Pls Analysis ◽

The Subject

Phenomenon of employment transformation in the modern economy is the subject of active discussions. Identification of factors influencing its development and the construction of a model of «new» (non-standard) employment are particularly topical. Based on the results of previous studies, we have identified both personal (human capital, education) and external factors (digitalization, social protection), put them forward and tested hypotheses about their impact on non-standard employment. We have constructed a structural model that reflects both the factors affecting non-standard employment, and the socio-economic parameters of society affected by non-standard employment (income and social inequality). We have assessed reliability and internal consistency of the model as well. Based on the results obtained, we have determined the degree of studied factors’ influence on non-standard employment in Kazakhstan. For the research, we used methods of online polling, modeling using structural equations (SEM) of SmartPLS software. Based on the results of the PLS analysis, we have identified two main issues of non-standard employment in Kazakhstan: a low level of social protection and inability to accumulate human capital of employees. Obtained determination coefficients (0.8, 0.5, and 0.58) indicate that the unstable nature of non-standard employment (instability, low wages) leads to an increase in poverty and social inequality. We have proposed measures to regulate these issues by improving legislation on social insurance for non-standardly employed citizens, and taking active measures to promote employment, including a state employment program.

Download Full-text