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The Birth and Growth of the Social Insurance State: Explaining Old Age and Medical Insurance Across Countries

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  • David M. Cutler
  • Richard Johnson

    ()

Abstract

We examine the factors leading to creation and growth of national Old-Age Insurance (OAI) and Health Insurance schemes. None of the theories we test fit the data very well. There is weak evidence that the probability of adopting a system declines in a country's wealth and in the ethnic heterogeneity of its population. Catholic countries are more likely to create earnings-related OAI systems. The growth of OAI spending since 1960 has varied considerably across countries, with fast growth in countries emerging from dictatorship and non-English speaking countries. We conclude that social insurance can be politically expedient for many different reasons.

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 120 (2004)
Issue (Month): 1_2 (07)
Pages: 87-121

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Handle: RePEc:kap:pubcho:v:120:y:2004:i:1_2:p:87-121

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Web page: http://www.springerlink.com/link.asp?id=100332

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Cited by:
  1. Rizzo, Giuseppe, 2009. "Fertility and pension systems," MPRA Paper 12998, University Library of Munich, Germany.
  2. J. Ignacio Conde-Ruiz & Paola Profeta, 2007. "The Redistributive Design of Social Security Systems," Working Papers 2007-07, FEDEA.
  3. Enrico Perotti & Armin Schwienbacher, 2007. "The Political Origin of Pension Funding," Tinbergen Institute Discussion Papers 07-004/2, Tinbergen Institute, revised 30 Oct 2008.
  4. Galasso, Vincenzo & Profeta, Paola, 2011. "When the State Mirrors the Family: The Design of Pension Systems," CEPR Discussion Papers 8723, C.E.P.R. Discussion Papers.
  5. Casey B. Mulligan & Ricard Gil & Xavier Sala-i-Martin, 2002. "Social Security and Democracy," NBER Working Papers 8958, National Bureau of Economic Research, Inc.
  6. Niklas Potrafke, 2012. "Is German domestic social policy politically controversial?," Public Choice, Springer, vol. 153(3), pages 393-418, December.
  7. VANNESTE, Jacques & ZHANG, Ying, 2012. "The impact of government expenditure on prepayment for health services: Evidence from cointegration analysis in heterogeneous panel data," Working Papers 2012029, University of Antwerp, Faculty of Applied Economics.
  8. Goul√£o, Catarina, 2014. "Voluntary Public Health Insurance," TSE Working Papers 14-488, Toulouse School of Economics (TSE).
  9. Sergio Espuelas-Barroso, 2010. "The determinants of social spending in Spain, 1950-1980, Are dictatorships less redistributive?," Working Papers in Economics 240, Universitat de Barcelona. Espai de Recerca en Economia.
  10. Aggarwal, Raj & Goodell, John W., 2013. "Political-economy of pension plans: Impact of institutions, gender, and culture," Journal of Banking & Finance, Elsevier, vol. 37(6), pages 1860-1879.
  11. Vincenzo Galasso & Paola Profeta, 2013. "From Family Culture to Welfare State Design," CHILD Working Papers Series 14, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
  12. Enrico Perotti & Armin Schwienbacher, 2007. "The Political Origin of Pension Funding," Tinbergen Institute Discussion Papers 07-004/2, Tinbergen Institute, revised 30 Oct 2008.
  13. Feigl, Andrea B. & Ding, Eric L., 2013. "Evidenced Formal Coverage Index and universal healthcare enactment: A prospective longitudinal study of economic, social, and political predictors of 194 countries," Health Policy, Elsevier, vol. 113(1), pages 50-60.

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