We seek to explain why countries have adopted national Old-Age Insurance and Health Insurance programs. Theoretical work has posited several factors that could lead to this adoption: the strain from expanding capitalism; the need for political legitimacy; the desire to transfer to similar people; increased wealth; and the outcome of leviathan government. We relate the probability of a country’s creating social insurance to proxies for each of these theories. We find weak evidence that the probability of adopting a system declines with increases in wealth and with greater ethnic heterogeneity. Still, none of the theories is very strongly related to system adoption. We conclude that social insurance can be politically expedient for many different reasons.
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Paper provided by Federal Reserve Bank of Kansas City in its series Research Working Paper with number
RWP 01-13.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Jeffrey A. Miron & David N. Weil, 1998.
"The Genesis and Evolution of Social Security,"
NBER Chapters,
in: The Defining Moment: The Great Depression and the American Economy in the Twentieth Century, pages 297-322
National Bureau of Economic Research, Inc.
[Downloadable!]
Naohiro Yashiro & Takashi Oshio, 1999.
"Social Security and Retirement in Japan,"
NBER Chapters,
in: Social Security and Retirement around the World, pages 239-267
National Bureau of Economic Research, Inc.
[Downloadable!]
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)