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1 – 10 of over 18000
Article
Publication date: 2 May 2017

Kerstin Bruckmeier and Jürgen Wiemers

International empirical evidence suggests that immigrants have a significantly higher risk than their native counterparts of being on welfare due to their observed…

Abstract

Purpose

International empirical evidence suggests that immigrants have a significantly higher risk than their native counterparts of being on welfare due to their observed characteristics. Nevertheless, it remains unclear if immigrants are also more prone to take-up benefits, conditional on being eligible. The authors explicitly focus on this potential explanation for higher welfare take-up rates. Therefore, the purpose of this paper is to analyze the take-up of social assistance in Germany by immigrants and natives, conditional on being eligible, and hence focus on take-up behavior rather than on determinants of eligibility.

Design/methodology/approach

To simulate welfare entitlements, the authors employ a Tax-Transfer Microsimulation Model. It is a static microsimulation model that consists of a detailed implementation of the German tax and transfer system as well as an econometrically estimated labor supply model. After the simulation of welfare entitlements, the authors analyze take-up behavior within a discrete choice framework. The authors estimate probit models of observed welfare benefit take-up for the sample of eligible households taking into account unobserved heterogeneity.

Findings

The estimation results do not reveal a significant effect of being a migrant on the probability of taking-up entitlements. The authors found a significant negative effect for citizens from European countries on the take-up probability, which disappeared after controlling for unobserved heterogeneity.

Research limitations/implications

The authors find that it is worthwhile to focus on different groups of immigrants. Although not statistically significant, the rates of non-take-up of welfare benefits differ between different immigrant groups. The analysis further shows that controlling for unobserved heterogeneity is important when analyzing welfare differences between immigrants and natives.

Practical implications

The higher welfare rates of immigrants are explained mainly by their higher risk of welfare dependence. Thus, given that reducing the welfare dependence of immigrants is a political goal, social policy measures to improve welfare recipients’ labor market prospects are contested. However, restricting eligibility rules to reduce entitlements does not seem to be the appropriate measure, because the take-up probability does not differ between immigrants and natives after controlling for individual characteristics.

Originality/value

The authors build on Castronova et al. (2001) and analyze the take-up behavior of individuals who are entitled to basic means-tested welfare benefits for employable persons in Germany. The analysis differs from Castronova et al. (2001) in four points. First, the authors provide first evidence of immigrant-native differences in welfare benefit take-up under the new welfare system in Germany after its reorganization in 2005. Second, the authors apply a microsimulation model of the comlete tax and transfer system in Germany to determine welfare eligibility. Third, the authors extend the analysis to a panel framework and take into account individual unobserved heterogeneity. Fourth, the authors distinguish between different groups of immigrants.

Details

International Journal of Manpower, vol. 38 no. 2
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 1 April 2002

Jonathan Sandbach and Chris Durnell

The US government is considering removing regulations on ILECs (incumbent local exchange carriers) with respect to local access services, through the implementation of…

Abstract

The US government is considering removing regulations on ILECs (incumbent local exchange carriers) with respect to local access services, through the implementation of legislation. These regulations imposed through the US 1996 Telecommunication Act, include local network unbundling and TELRIC pricing, and, in our view, set the correct economic incentives for efficient investment in the telecommunications industry, and industries using telecommunication services. Critics argue that unbundling requirements and TELRIC pricing are negatively affecting investment incentives of the ILECs. This paper uses empirical data to study the causes of varying degrees of DSL take‐up in Western Europe and the US. The analysis shows that, rather than disincentivising incumbent investment, local network unbundling actually provides a competitive stimulus for incumbents to achieve higher rates of take‐up for their own DSL services. Any departure from unbundling and TELRIC prices would protect ILECs against competition in downstream services, and dampen incentives for efficient service provision.

Details

info, vol. 4 no. 2
Type: Research Article
ISSN: 1463-6697

Keywords

Book part
Publication date: 1 October 2008

Alan L. Gustman and Thomas L. Steinmeier

Using data from the Health and Retirement Study, we examine behavioral responses to a new generation of retirement policies that on average are actuarially neutral…

Abstract

Using data from the Health and Retirement Study, we examine behavioral responses to a new generation of retirement policies that on average are actuarially neutral. Although many conventional models predict that actuarially neutral policies will not affect retirement behavior, our model allows those with high-time preference rates to find that the promise of an actuarially fair increase in future rewards does not balance the loss from foregone current benefits. Thus together with liquidity constraints facing those with high-time preference, we find that actuarially neutral policies do affect retirement behavior. One such policy follows on the elimination of the Social Security earnings test for those over normal retirement age, and would eliminate the earnings test between early and normal retirement age. Another of these policies would increase the ages of benefit entitlement. Still another such policy emerges from a central focus of the past few years on the adoption of personal accounts. Although Social Security benefits are currently paid in the form of an annuity, benefits from either defined benefit plans or from personal accounts may be made available as an annuity or as a lump sum of equivalent actuarial value. A related policy choice between actuarially equivalent benefits emerges on the pension side. There has been discussion of relaxing the current IRS prohibition against paying a pension benefit when a person remains at work, instead allowing partial pension benefits to be paid to those who partially retire on a job.

Details

Work, Earnings and Other Aspects of the Employment Relation
Type: Book
ISBN: 978-1-84950-552-9

Article
Publication date: 1 July 1997

Roy Canning

The take‐up and completion rates for the level 4 N/SVQs in training and development over the period 1992‐1994 have been extremely disappointing. If these figures are…

238

Abstract

The take‐up and completion rates for the level 4 N/SVQs in training and development over the period 1992‐1994 have been extremely disappointing. If these figures are representative of other higher level N/SVQs, then this gives major cause for concern over the proposed extension of the NVQ framework at higher levels. Argues that there is an urgent need for research into the take‐up and completion rates for other level 4 and 5 awards. Finally, a major obstacle to improving the quality of N/SVQ provision is the lack of data available at award level in England and Wales to determine the success or otherwise of particular NVQs . In Scotland the position is even more serious as no data are published on the performance of SVQs at framework or award level.

Details

Journal of European Industrial Training, vol. 21 no. 5
Type: Research Article
ISSN: 0309-0590

Keywords

Article
Publication date: 6 July 2021

Edward Trevillion

The purpose of this paper is to outline the benefits of using system dynamics modelling as a research tool to understand the dynamics of commercial property markets in the…

Abstract

Purpose

The purpose of this paper is to outline the benefits of using system dynamics modelling as a research tool to understand the dynamics of commercial property markets in the UK and their long-term behaviour. It highlights areas for future work.

Design/methodology/approach

This is a concept paper that outlines a simple systems model of rental change in UK commercial property markets as a way of illustrating how a systems approach can be used to describe and model the market. The model concentrates on the user market and offers a view of market operation, according to which development activity is initiated by demand (linked to economic growth) and to which supply responds by producing development.

Findings

The model demonstrates how a systems approach can be used to model the impact of a wide range of market variables on rental growth. The approach allows non-linear modelling of the complex relationships and behavioural factors that are difficult to include in existing econometric models of the market. It highlights where existing knowledge is deficient, especially with regard to price elasticity of demand, the relationship between economic activity and take up, the potential impact of redevelopment on the supply of new property and rental growth and response times of various parts of the market development process to market signals. It outlines where further research is needed to incorporate real market data.

Originality/value

Despite the wide application of the systems theory to business and other related areas, its use in commercial property research has been limited and has not gained much traction as a research tool. The work represents one of a very few studies applying the systems theory to the UK commercial property market.

Details

Journal of European Real Estate Research, vol. 15 no. 2
Type: Research Article
ISSN: 1753-9269

Keywords

Article
Publication date: 1 January 1997

David Deakins, Andrew Paddison and Patrick Bentley

Risk management consists of a process that involves the assessment and evaluation of risks. Identifying risks that can be reduced and risks that can be transferred…

Abstract

Risk management consists of a process that involves the assessment and evaluation of risks. Identifying risks that can be reduced and risks that can be transferred (through insurance) is part of that process. The environment for insurance affects the ability of the high technology‐based entrepreneur to engage in this process. For example, the availability of product liability cover can affect the ability to develop new products. In a combined study of Scottish and West Midlands high technology‐based small firms (HTSFs), follow‐up interviews, cases and research in the insurance industry, we found that this environment is less than perfect. There are issues in the insurance industry that can lead to problems for high technology‐based entrepreneurs. These issues are associated with the availability and search costs associated with specialized insurance. Failure rates of high technology‐based entrepreneurs, although below those of other small firms, are still high. The high cost and limited availability of specialized insurance, which is sought by the high technology entrepreneur, contributes to the difficulty of the environment and adds to the costs and/or risks faced by such entrepreneurs.

Details

Journal of Small Business and Enterprise Development, vol. 4 no. 1
Type: Research Article
ISSN: 1462-6004

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

Keywords

Article
Publication date: 29 May 2009

Gwilym Pryce and Nigel Sprigings

The purpose of this paper is to present a brief analytical summary of the current downturn in the UK housing sector. It then aims to ask whether the severity of the…

1365

Abstract

Purpose

The purpose of this paper is to present a brief analytical summary of the current downturn in the UK housing sector. It then aims to ask whether the severity of the slowdown and its eventual consequences have been exacerbated by key aspects of housing and welfare policy.

Design/methodology/approach

The paper examines: the promotion of property as an investment by successive UK governments since the Second World War; how the investment emphasis of policy enabled the promotion and growth of private rental partly funded through buy‐to‐let mortgages – a new financial product that allows individuals to take out a mortgage on a property for letting purposes; the expansion of cheap credit, due in part to the burgeoning securitised lending sector drawing heavily on housing equity (the decline of which is implicated in the current economic downturn); and reforms of the welfare system in the mid 1990s that have severely weakened the safety net for low‐income mortgage borrowers who are most vulnerable to market turbulence.

Findings

It was found that there are wider questions to be asked of the current downturn than how deep or how long the current recession will be. More important questions relate to the role that housing policy has played in exacerbating volatility and the future implications for modernizing housing policy.

Research limitations/implications

The paper identifies a number of key research questions that follow from the analysis regarding the winners and losers of homeownership and the concomitant implications for policy.

Originality/value

The paper identifies areas of government failure relevant to the current crisis and knowledge gaps that need to be addressed in order to develop a coherent evidence base on which to base future reform of housing policy. As such, the findings will be of interest to policy makers and housing researchers.

Details

International Journal of Housing Markets and Analysis, vol. 2 no. 2
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 1 October 1999

Jason Ramsay and Malcolm Smith

Since deregulation in the mid‐1980s the banking industry in Australia has become increasingly competitive. Australia already has one of the least controlled banking…

2547

Abstract

Since deregulation in the mid‐1980s the banking industry in Australia has become increasingly competitive. Australia already has one of the least controlled banking systems in the world, and the implementation of the recommendations of the Financial Systems Inquiry (the Wallis Report) should contribute to a further increase in competition in the banking sector, with more non‐bank financial institutions and speciality companies entering the market. Increased competition, weakening interest rates, squeezed profit margins and the surge of mortgage originators into a traditional banking market have all prompted a search for new and innovative methods of improving internal efficiency, leading to the development of new banking products and the exploration of alternate delivery methods, or channels. Improvements in technology are facilitating this development and this paper examines the implications both for customers and for bank profitability.

Details

Managerial Auditing Journal, vol. 14 no. 7
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 1 December 2001

C.A. Kennedy

Increasingly, social scientists are interested in the process of decision making – how and why households decide to test and remediate, as well as the decision outcomes or…

260

Abstract

Increasingly, social scientists are interested in the process of decision making – how and why households decide to test and remediate, as well as the decision outcomes or the observed remediation behaviour. A random sample of 1,043 households in Northamptonshire were surveyed to gain insight into all aspects of their experiences with radon gas. Two particular aspects of their experience are explored here. Radon testing in the sample was provided free‐of‐charge to the householders. The main reason given for testing was that they were asked by the National Radiological Protection Board to do so. No household in the sample reported that they tested because of a conveyancing requirement or a desire for a quick future sale of the home. The rates of radon gas remediation observed for the residential population sample varied from 10.3 per cent in the whole sample population to 32 per cent for the respondents only sample. The average cost of remediation (approx. £500) was lower than expected.

Details

Environmental Management and Health, vol. 12 no. 5
Type: Research Article
ISSN: 0956-6163

Keywords

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