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Redistributive Outcomes Of Sickness Insurance On Income: An Empirical Study Of Social Insurance Institutions

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  • Jahangir Khan
  • Bjarne Jansson

Abstract

We analyzed the redistributive outcomes of sickness benefits using a typology of social insurance institutions, including four different systems, after adjusting for sickness risk factors. The aim is to empirically observe if the expected redistributive pattern of the typology could be verified whether or not considering the variations in sickness risk across the countries. Data on household earnings and sickness benefits in ten countries and for different years were taken from the Luxembourg Income Study. We also used data on labor force demography and educational attainment. Gini coefficients were used for measuring earnings inequality. Relative changes in earnings inequality for sickness benefits were predicted by social insurance institutional dummies using multiple regression analyses. Among the four different schemes, the encompassing system is found to be most redistributive, followed by basic security and targeting systems. The corporatist system has shown no significant difference from the encompassing system in redistributive outcomes.

Suggested Citation

  • Jahangir Khan & Bjarne Jansson, 2008. "Redistributive Outcomes Of Sickness Insurance On Income: An Empirical Study Of Social Insurance Institutions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(1), pages 89-104, March.
    • Handle: RePEc:bla:revinw:v:54:y:2008:i:1:p:89-104
    DOI: 10.1111/j.1475-4991.2007.00261.x
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    Cited by:

    1. Malte Luebker, 2014. "Income Inequality, Redistribution, and Poverty: Contrasting Rational Choice and Behavioral Perspectives," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(1), pages 133-154, March.
    2. Malte Luebker, 2014. "Income Inequality, Redistribution, and Poverty: Contrasting Rational Choice and Behavioral Perspectives," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(1), pages 133-154, March.
    3. repec:unu:wpaper:wp2012-44 is not listed on IDEAS
    4. repec:ilo:ilowps:471001 is not listed on IDEAS

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