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Article
Publication date: 4 February 2019

Oliwia Komada, Pawel Strzelecki and Joanna Tyrowicz

The purpose of this paper is to isolate and evaluate the causal effect of the changes in eligibility criteria on labor force participation (LFP) and exit to retirement of…

Abstract

Purpose

The purpose of this paper is to isolate and evaluate the causal effect of the changes in eligibility criteria on labor force participation (LFP) and exit to retirement of the cohorts affected by the reform that canceled most of the early pensions in Poland in 2009. At the individual level the reform created a huge discontinuity in treatment of different generations.

Design/methodology/approach

The authors rely on Polish Labor Force Survey and employ regression discontinuity design to evaluate the change in participation subsequent to the eligibility reform among the treated cohorts.

Findings

The authors find a statistically significant, but economically small discontinuity at the timing of the reform. The placebo test shows no similar effects in earlier or later quarters. Yet, the pure treatment effects are insignificant in vast majority of the specifications.

Research limitations/implications

There are some limitations of the data used in the research. It does not cover total population and some panel attrition can be expected. Authors also needed to cope with the lack of required details in survey questions. The main limitation of the method lies in the measurement of the immediate (short-term) effects while in many cases people require more time that 1–2 quarters for the decision after policy change.

Practical implications

The reduction of outflows to retirement was much less pronounced than could have been expected, largely due to already relatively lower propensity to retire early.

Social implications

There are two main policy implications of the study. First, constraining the pension eligibility criteria for retirement are frequently opposed by social actors. It is often considered that early retirement is a privilege – awarded on a basis of occupation or even simply employment in an industry. In many countries – e.g. France, Italy, Germany – attempts to make the eligibility criteria more strict resulted in general strikes and Poland was no exception from this rule. If treatment effects of the large and radical eligibility reform are small in participation rates and pension take-up rates, then immediate fiscal effects are bound to be small as well, even if in the desirable direction. This may explain why – given the strong social resistance – in many countries eligibility reforms are delayed or narrowed in scope. Second, the economic rationale for strong social resistance to eligibility reforms builds on assuming either a relatively high valuation of leisure time after exiting the labor market or a relatively high subjective valuation of the unemployment risk after passing the early retirement age threshold. If leisure preference is overstated, reducing eligibility may be opposed as such, but eligibility alone is irrelevant for household decision making. Meanwhile, unemployment risk may be mitigated via alternative instruments, such as employment protection legislation, as is the case in Poland. Depending on a specific composition of the two factors in a given country, the effects of the eligibility reforms may be as high as in Switzerland or as low as in Poland.

Originality/value

First, the authors provide an analysis of discontinuities in transitions from activity to retirement, rather than focusing on the labor market status. The panel dimension of the data permits to observe directly the flows into retirement/inactivity, controlling for age and birth cohort. Second, the authors complement a pure discontinuity in cohort analysis with a fuzzy design, because in addition to age eligibility the authors also analyze the effects of changes in occupational eligibility. Third, the authors provide a benchmark for the estimates in the actual quarter of the reform by a series of placebo and conditional specifications. This allows to evaluate the (immediate) size and heterogeneity of the treatment effects. The authors find small effects of age eligibility reduction and effectively no effects of occupational eligibility. Hence, increased LFP of the elderly, observed even prior to the reform, seems to be driven by factors unrelated to early pension eligibility.

Details

International Journal of Manpower, vol. 40 no. 2
Type: Research Article
ISSN: 0143-7720

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Book part
Publication date: 6 August 2014

Norma B. Coe and April Yanyuan Wu

This article estimates the causal effect of benefit levels on elderly enrollment in two public assistance programs by using the variation in eligibility and benefit levels…

Abstract

This article estimates the causal effect of benefit levels on elderly enrollment in two public assistance programs by using the variation in eligibility and benefit levels introduced by old-age pension benefits. The findings are threefold. First, the low take-up among the elderly is not driven by changes in the composition of the eligible pool. Second, old-age pensions decrease the use of public assistance programs by decreasing the gain of participation – the potential benefits. Third, we find program-specific responses: a $100 increase in potential Supplemental Security Income (SSI) benefits leads to a 4–6 percentage point increase in the take-up probability, but we are unable to estimate consistent results for the Supplemental Nutrition Assistance Program (SNAP). Together with the fact that eligible individuals who begin receiving old-age pensions continue to participate in SSI more often than they maintain SNAP enrollment, the different program response could be due to preference for cash over in-kind transfers.

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Article
Publication date: 10 July 2017

Andrea Nana Ofori-Boadu, Musibau Adeola Shofoluwe and Robert Pyle

The purpose of this paper is to develop a Housing Eligibility Assessment Scoring Method (HEASM) for low-income Urgent Repair Programs (URPs).

Abstract

Purpose

The purpose of this paper is to develop a Housing Eligibility Assessment Scoring Method (HEASM) for low-income Urgent Repair Programs (URPs).

Design/methodology/approach

In order to develop a practical HEASM that incorporates the prevailing eligibility assessment criteria for low-income URPs, a case study research approach was adopted. Emergent themes and patterns in predominant eligibility assessment criteria and methods are derived from program documents utilized by a successful State Urgent Repair Program (SURP) and its 42 Community Partners operating in the Southeastern region of the USA. Coupled with interviews and the expert analysis of SURP staff, the quantitative analysis of 11,414 repaired homes and literature reviews were used to categorize predominant eligible housing repairs and costs.

Findings

The five key eligibility assessment criteria categories that emerged from the data analysis are: location, owner-occupancy, family needs, housing repair, and estimated repair costs. The framework of the proposed HEASM is guided by these five categories.

Originality/value

URP decision makers are provided with a simple, practical, and objective eligibility assessment method that can be easily modified to accommodate the unique eligibility criteria and local program conditions. This method should improve the eligibility assessment, prioritization, and the eventual selection of qualifying applicants. Consequently, the capacity of URPs to provide funding to their targeted populations with the most critical needs would be enhanced. Insights could drive the impetus to modify existing URP.

Details

International Journal of Building Pathology and Adaptation, vol. 35 no. 3
Type: Research Article
ISSN: 2398-4708

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Article
Publication date: 1 October 1998

Karin Janzon

Prioritising in social services is not new. What has changed in the last ten years is that there has been a more open debate about the way in which scarce resources are…

Abstract

Prioritising in social services is not new. What has changed in the last ten years is that there has been a more open debate about the way in which scarce resources are rationed and a move towards explicit policies of eligibility and targeting of services. Most authorities have developed some statement of priority with which to guide the allocation of resources, though authorities vary widely in their approach. This article looks at the current state of play in this controversial policy area.

Details

Journal of Integrated Care, vol. 6 no. 5
Type: Research Article
ISSN: 1476-9018

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Article
Publication date: 1 December 2008

Malcolm Firth, Frank Hanily and Paul Garratt

This paper identifies the challenges of interpreting and implementing appropriate eligibility criteria and assessment processes in adult mental health services, with…

Abstract

This paper identifies the challenges of interpreting and implementing appropriate eligibility criteria and assessment processes in adult mental health services, with reference to an inner‐city Trust's own protocols. Central guidance, local interpretation and professional judgment are all legitimate contributions, but also confound both the concept and processes of entry to service.

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Book part
Publication date: 13 May 2017

Zhuan Pei and Yi Shen

Identification in a regression discontinuity (RD) design hinges on the discontinuity in the probability of treatment when a covariate (assignment variable) exceeds a known…

Abstract

Identification in a regression discontinuity (RD) design hinges on the discontinuity in the probability of treatment when a covariate (assignment variable) exceeds a known threshold. If the assignment variable is measured with error, however, the discontinuity in the relationship between the probability of treatment and the observed mismeasured assignment variable may disappear. Therefore, the presence of measurement error in the assignment variable poses a challenge to treatment effect identification. This chapter provides sufficient conditions to identify the RD treatment effect using the mismeasured assignment variable, the treatment status and the outcome variable. We prove identification separately for discrete and continuous assignment variables and study the properties of various estimation procedures. We illustrate the proposed methods in an empirical application, where we estimate Medicaid takeup and its crowdout effect on private health insurance coverage.

Details

Regression Discontinuity Designs
Type: Book
ISBN: 978-1-78714-390-6

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Book part
Publication date: 20 June 2003

Mark C Berger, Dan A Black, Amitabh Chandra and Frank A Scott

In the spirit of Polachek (1975) and the later work of Becker (1985) on the role of specialization within the family, we examine the relationship between fringe benefits…

Abstract

In the spirit of Polachek (1975) and the later work of Becker (1985) on the role of specialization within the family, we examine the relationship between fringe benefits and the division of labor within a married household. The provision of fringe benefits is complicated by their non-additive nature within the household, as well as IRS regulations that stipulate that they be offered in a non-discriminatory manner in order to maintain their tax-exempt status. We model family decisions within a framework in which one spouse specializes in childcare and as a result experiences a reduction in market productive capacity. Our model predicts that the forces toward specialization become stronger as the number of children increase, so that the spouse specializing in childcare will have some combination of lower wages, hours worked, and fringe benefits. We demonstrate that to the extent that labor markets are incomplete, the family is less likely to obtain health insurance from the employer of the spouse that specializes in childcare. Using data from the April 1993 CPS we find evidence consistent with our model.

Details

Worker Well-Being and Public Policy
Type: Book
ISBN: 978-1-84950-213-9

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Article
Publication date: 9 August 2013

Julie Cloutier, Denis Morin and Stéphane Renaud

This study aims to determine the effect of individual and group variable pay plans on pay satisfaction among Canadian workers from six occupational groups.

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Abstract

Purpose

This study aims to determine the effect of individual and group variable pay plans on pay satisfaction among Canadian workers from six occupational groups.

Design/methodology/approach

Theoretical foundations rest on the discrepancy model of pay satisfaction and equity theory. Canadian national data from the Workplace and Employee Survey (WES) were used to test the hypotheses.

Findings

The results show that individual and group variable pay plans act differently on workers’ pay satisfaction. For individual pay plans, being eligible for a variable pay plan, and thereby having one's performance rewarded, has no effect on pay satisfaction. Workers on variable pay plans are more satisfied with their pay only when they receive performance‐dependent payouts. In short, they want to be rewarded not only for performance but also for effort. For group pay plans, not receiving payouts has no negative effect on pay satisfaction. In contrast, receiving payouts creates pay dissatisfaction. Individual and group plans have a distinct effect on pay satisfaction by occupational group.

Practical implications

Managers can make informed decisions regarding the adoption of variable pay plans and their implementation.

Originality/value

This study sheds light on the link between variable pay and pay satisfaction. It improves our understanding of the mechanism by which variable pay affects pay satisfaction: the effort – performance – pay link (i.e. risk and perceived fairness of the allocation).

Details

International Journal of Manpower, vol. 34 no. 5
Type: Research Article
ISSN: 0143-7720

Keywords

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Book part
Publication date: 6 August 2014

Stephan Lindner and Austin Nichols

Workers in the United States who lose their job may benefit from temporary assistance programs and may apply for Disability Insurance (DI) and Supplemental Security Income…

Abstract

Workers in the United States who lose their job may benefit from temporary assistance programs and may apply for Disability Insurance (DI) and Supplemental Security Income (SSI). We measure whether participation in four temporary assistance programs (Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), Unemployment Insurance (UI), and Temporary Disability Insurance programs (TDI)) influence application for DI, SSI, and re-employment. We instrument temporary assistance participation using variation in policies across states and over time. Results from our instrumental variables models suggest that increased access to UI benefits reduces applications for DI. This result is robust to different sensitivity checks. We also find less robust evidence that UI participation increases the probability of return to work and reduces the probability of claiming SSI benefits. In contrast, some of our results suggest a positive effect of SNAP participation on claiming SSI.

Details

Safety Nets and Benefit Dependence
Type: Book
ISBN: 978-1-78441-110-7

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Book part
Publication date: 11 August 2014

Timothy J. Bartik and Marta Lachowska

In order to study whether college scholarships can be an effective tool in raising students’ performance in secondary school, we use one aspect of the Kalamazoo Promise…

Abstract

In order to study whether college scholarships can be an effective tool in raising students’ performance in secondary school, we use one aspect of the Kalamazoo Promise that resembles a quasi-experiment. The surprise announcement of the scholarship created a large change in expected college tuition costs that varied across different groups of students based on past enrollment decisions. This variation is arguably exogenous to unobserved student characteristics. We estimate the effects of this change by a set of “difference-in-differences” regressions where we compare the change in student outcomes in secondary school across time for different student “length of enrollment” groups. We also control for student fixed effects. We find positive effects of the Kalamazoo Promise on Promise-eligible students large enough to be deemed important – about a 9 percent increase in the probability of earning any credits and one less suspension day per year. We also find large increases in GPA among African American students.

Details

New Analyses of Worker Well-Being
Type: Book
ISBN: 978-1-78350-056-7

Keywords

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