Assessing Welfare Accounts
The paper examines the possible effects of introducing a large-scale welfare reform in Sweden, namely, the introduction of comprehensive welfare accounts. Under this policy, individuals make mandatory contributions to accounts, which they can top up with voluntary contributions. In return, individuals’ welfare benefits are paid from their accounts. The paper uses a large panel of individual income data to examine how the adoption of universal welfare accounts may affect economic activity. We find that this policy could be designed so as to reduce social insurance expenditure considerably, improve the incentives to work and save, all with relatively small redistributive impact.
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|Date of creation:||Jul 2002|
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References listed on IDEAS
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- Martin Feldstein & Daniel Altman, 2007.
"Unemployment Insurance Savings Accounts,"
in: Tax Policy and the Economy, Volume 21, pages 35-64
National Bureau of Economic Research, Inc.
- Orszag, Mike & Snower, Dennis J., 2002. "From Unemployment Benefits to Unemployment Accounts," IZA Discussion Papers 532, Institute for the Study of Labor (IZA).
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