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How reliable are social safety nets?: Value and accessibility in situations of acute economic need

Author

Listed:
  • Raphaela Hyee
  • Herwig Immervoll
  • Rodrigo Fernandez
  • Jongmi Lee

Abstract

Social protection systems use a range of entitlement criteria. First-tier support typically requires contributions or past employment in many countries, while safety net benefits are granted on the basis of need. In a context of volatile and uncertain labour markets, careful and continuous monitoring of the effectiveness of income support is a key input into an evidence-based policy process. This paper proposes a novel empirical method for monitoring the accessibility and levels of safety net benefits. It focusses on minimum-income benefits (MIB) and other non-contributory transfers and relies on data on the amounts of cash support that individuals in need receive in practice. Results show that accessibility and benefit levels differ enormously across countries – for instance, in 2015/16, more than four out of five low-income workless one-person households received MIB in Australia, France and the United Kingdom, compared to only one in five in Greece, Italy and Korea, three countries that have since sought to strengthen aspects of safety-net provisions.

Suggested Citation

  • Raphaela Hyee & Herwig Immervoll & Rodrigo Fernandez & Jongmi Lee, 2020. "How reliable are social safety nets?: Value and accessibility in situations of acute economic need," OECD Social, Employment and Migration Working Papers 252, OECD Publishing.
    • Handle: RePEc:oec:elsaab:252-en
    DOI: 10.1787/65a269a3-en
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    Cited by:

    1. Regina Konle-Seidl, 2021. "Die Grundsicherung für Arbeitsuchende im europäischen Kontext [The German Basic Income System in the European Context]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 101(9), pages 719-725, September.

    More about this item

    Keywords

    minimum income; poverty; social assistance; social benefits; social protection; social protection floors;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods

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