Vu Hong Quang, Viet Nam General Confederation of Labour
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THE FREE-MARKET WELFARE STATE: Preserving Dynamism in a Volatile World
Policy Essay THE FREE-MARKET WELFARE STATE: Preserving Dynamism in a Volatile World Samuel Hammond1 Poverty and Welfare Policy Analyst Niskanen Center May 2018 INTRODUCTION welfare state” directly depresses the vote for reac- tionary political parties.3 Conversely, I argue that he perennial gale of creative destruc- the contemporary rise of anti-market populism in tion…” wrote the economist Joseph America should be taken as an indictment of our in- 4 Schumpeter, “…is the essential fact of adequate social-insurance system, and a refutation “T of the prevailing “small government” view that reg- capitalism.” For new industries to rise and flourish, old industries must fail. Yet creative destruction is ulation and social spending are equally corrosive to a process that is rarely—if ever—politically neu- economic freedom. The universal welfare state, far tral; even one-off economic shocks can have lasting from being at odds with innovation and economic political-economic consequences. From his vantage freedom, may end up being their ultimate guaran- point in 1942, Schumpeter believed that capitalism tor. would become the ultimate victim of its own suc- The fallout from China’s entry to the World Trade cess, inspiring reactionary and populist movements Organization (WTO) in 2001 is a clear case in against its destructive side that would inadvertently point. Cheaper imports benefited millions of Amer- strangle any potential for future creativity.2 icans through lower consumer prices. At the same This paper argues that the countries that have time, Chinese import competition destroyed nearly eluded Schumpeter’s dreary prediction have done two million jobs in manufacturing and associated 5 so by combining free-markets with robust systems services—a classic case of creative destruction. -
Social Insurance Law PART 1
Social Insurance Law PART 1: THE CONSOLIDATED ACT ON SOCIAL INSURANCE CHAPTER I THE REGULATION OF SOCIAL INSURANCE, SCOPE OF APPLICATION AND DEFINITIONS Article 1 This Law shall be cited as "The Social Insurance Law" and shall include the following branches of Insurance :- 1. Insurance against old age, disability and death; 2. Insurance against employment injuries; 3. Insurance against temporary disability by reason of sickness or maternity; 4. Insurance against unemployment; 5. Insurance for the self-employed and those engaged in liberal professions; 6. Insurance for employers; 7. Family Allowances; 8. Other branches of insurance which fall within the scope of social security. Each of the first two branches shall be introduced in accordance with the following provisions and the protection guaranteed by this Law shall be extended in future stages by introducing the other branches of social insurance by Order of the Council of Ministers. Article 2 The provisions of this Law shall be applied compulsorily to all workers without discrimination as to sex, nationality, or age, who work by virtue of an employment contract for the benefit of one or more employers, or for the benefit of an enterprise in the private, co-operative, or para-statal sectors and, unless otherwise provided for, those engaged in public organisations or bodies, and also those employees and workers in respect of whom Law No. 13 of 1975 does not apply, and irrespective of the duration, nature or form of the contract, or the amount or kind of wages paid or whether the service is performed in accordance with the contract within the country or for the benefit of the employer outside the country or whether the assignment to work abroad is for a limited or an unlimited period. -
Social Insurance: Connecting Theory to Data
CHAPTER 3 Social Insurance: Connecting Theory to Data Raj Chetty*,† and Amy Finkelstein†,‡ *Harvard University †NBER ‡MIT Contents 1. Introduction 112 2. Motivations for Social Insurance 114 2.1. Adverse Selection: Review of the Basic Theory 115 2.1.1. A Stylized Model 116 2.1.2. The Textbook Case 118 2.1.3. Departures from the Textbook Environment: Loads and Preference Heterogeneity 123 2.2. Empirical Evidence on Selection 127 2.2.1. Testing for Selection 128 2.2.2. Evidence on Selection 131 2.2.3. Welfare Consequences 134 2.2.4. Directions for Future Work 139 2.3. Other Motivations 140 3. Design of Public Insurance Programs 143 3.1. Optimal Benefit Level in a Static Model 145 3.2. Sufficient Statistics Implementation 148 3.2.1. Consumption Smoothing 148 3.2.2. Liquidity vs. Moral Hazard 157 3.2.3. Reservation Wages 159 3.3. Generalizing the Static Model 163 3.3.1. Dynamics: Endogenous Savings and Borrowing Constraints 163 3.3.2. Externalities on Private Insurers 168 3.3.3. Externalities on Government Budgets 170 3.3.4. Other Externalities 172 3.3.5. Imperfect Optimization 174 3.4. Other Dimensions of Policy 176 3.4.1. Liquidity Provision and Mandated Savings Accounts 176 3.4.2. Imperfect Takeup 178 3.4.3. Path of Benefits 180 4. Challenges for Future Work 182 Acknowledgments 186 References 186 Handbook of Public Economics, Volume 5 © 2013 Elsevier B.V. ISSN 1573-4420, http://dx.doi.org/10.1016/B978-0-444-53759-1.00003-0 All rights reserved. -
Cost-Sharing Mechanisms in Health Insurance Schemes: a Systematic Review
Cost-sharing mechanisms in health insurance schemes: A systematic review Submitted to The Alliance for Health Policy and Systems Research, WHO From Meng Qingyue, Jia Liying, Yuan Beibei Center for Health Management and Policy, Shandong University October, 2011 TABLE OF CONTENTS AbAbAb stract .............................................................................................................................................. 3 1 Background ..................................................................................................................................... 6 2 Objectives and definitions ............................................................................................................... 7 3 Criteria for inclusion of studies........................................................................................................ 7 4. Methods ........................................................................................................................................ 8 4.1 Searched databases and websites ........................................................................................... 8 4.2 Search strategy ........................................................................................................................ 8 4.3 Review method ...................................................................................................................... 10 5 Results ......................................................................................................................................... -
Tax-Based Financing for Health Systems
World Health Organization Geneva EIP/FER/DP.04.4 Tax-Based Financing for Health Systems: Options and Experiences DISCUSSION PAPER NUMBER 4 - 2004 Department "Health System Financing, Expenditure and Resource Allocation" (FER) Cluster "Evidence and Information for Policy" (EIP) World Health Organization 2004 This document is not a formal publication of the World Health Organization (WHO), and all rights are reserved by the Organization. The document may, however, be freely reviewed, abstracted, reproduced or translated, in part or in whole, but not for sale or for use in conjunction with commercial purposes. The views expressed in documents by named authors are solely the responsibility of those authors. Tax-Based Financing for Health Systems: Options and Experiences by William Savedoff WORLD HEALTH ORGANIZATION GENEVA 2004 Tax-Based Financing for Health Systems: Options and Experiences I. Introduction Out-of-pocket spending is the most frequent way to pay for health services around the world. However, as a share of the total value of global health spending, it is eclipsed by social insurance, private insurance and general taxation. These latter forms of payment provide better financial protection for households because they are "prepaid" and pool health risks across individuals. Of these prepaid financing mechanisms, general government revenues are the most widespread, providing substantial funding for health services in almost every country. In fact, government revenues are the predominant source for health care expenditures in 106 out of 191 WHO member countries.1 Paying for health services out of government tax revenues is a fairly recent innovation in health care financing. Until the mid-twentieth century, the major alternatives to out-of- pocket payments for health care services were private philanthropies, mutual associations or social insurance plans (e.g. -
Social Health Insurance Systems in Western Europe
Social health insurance… 6/30/04 2:43 PM Page 1 Social healthinsurance systems Social health insurance systems in western Europe European Observatory on Health Systems and Policies Series • What are the characteristics that define a social health insurance system? • How is success measured in SHI systems? • How are SHI systems developing in response to external pressures? Using the seven social health insurance countries in western Europe – Austria, Belgium, France, Germany, Luxembourg, the Netherlands and Switzerland – as well as Israel, this important book reviews core structural and organizational dimensions, as well as recent reforms and innovations. Covering a wide range of policy issues, the book: • Explores the pressures these health systems confront to be more in efficient, more effective, and more responsive Europe western • Reviews their success in addressing these pressures • Examines the implications of change on the structure of SHIs as Social health insurance they are currently defined • Draws out policy lessons about past experience and likely future developments in social health insurance systems in a manner useful to policymakers in Europe and elsewhere systems in western Europe Social health insurance systems in western Europe will be of interest to students of health policy and management as well as health managers and policy makers. /Figueras Saltman/Busse by Edited The editors Richard B. Saltman is Professor of Health Policy and Management at the Rollins School of Public Health, Emory University in Atlanta, USA and Research Director of the European Observatory on Health Systems and Policies. Reinhard Busse is Professor and Department Head of Health Care Management at the Technische Universität in Berlin, Germany and Associate Research Director of the European Observatory on Health Systems and Policies. -
Trade Union Benefits and Our Social Insurance Problems by Rainard B
14 TRADE UNION BENEFITS TRADE UNION BENEFITS AND OUR SOCIAL INSURANCE PROBLEMS BY RAINARD B. ROBBINS Trade unions have, for half a century, paid insurance benefits, quasi and pseudo insurance benefits, along with many other forms of allowances to which the term "insurance" is entirely foreign. An examination of the methods and experiences of trade unions will teach members of this body nothing in the way of actuarial theory. In fact, from the standpoint of an actuary the study of what trade unions have done is a good way of finding out what not to do. Nevertheless, this paper is written to review, very briefly, some of the characteristics of trade union benefit schemes, with the thought that we may learn something from these activities which will be of use in dealing with problems of importance to us as good citizens, if not as company actuaries. Trade union organizations are formed for the purpose of collec- tive bargaining in order to improve wages and working condi- tions. The basic units of union organizations are quite local and almost without exception a union is in existence for only a rela- tively short time before the members agree to unite in helping the less fortunate of their number by the payment of benefits in case of the occurrence of various contingencies, such as sick- ness, accident, death and old age. These are in addition to other benefits such as those paid in case of labor disturbances and unemployment. One of the mo~t common trade union benefits is the death benefit. Probably the simplest method of handling this benefit is to have either a tentative agreement or a hard and fast rule that each member shall pay a certain amount, say $1.00 when- ever a member dies, and that the total amount collected shall be paid to the beneficiary. -
The US Social Welfare Structure Has Been Shaped Both By
The U.S. social welfare structure has been shaped both by long standing traditions and by changing economic and social conditions. In its early history, the United States was an expanding country with a vast frontier and a predominantly agricultural economy. Up to 1870, more than half the Nation’s adult workers were farmers. In the years that followed, however, industry devel oped rapidly and the economy tended increasingly to be charac terized by industrialization, specialization, and urbanization. The result was a Nation of more employees who were dependent on a continuing flow of money income to provide for themselves and their families. From the earliest colonial times, local villages and towns recognized an obligation to aid the needy when family effort and assistance provided by neighbors and friends were not sufficient. This aid was carried out through the poor relief system and almshouses or workhouses. Gradually, measures were adopted to provide aid on a more organized basis, usually through cash allowances to certain categories among the poor. Mothers’ pen sion laws, which made it possible for children without paternal support to live at home with their mothers rather than in institu tions or foster homes, were adopted in a number of States even before World War I. In the mid-twenties, a few States began to experiment with old-age assistance and aid to the blind. Meanwhile, both the States and the Federal Government had begun to recognize that certain risks in an increasingly industrial ized economy could best be met through a social insurance approach to public welfare. -
Social Insurance
University of Central Florida STARS PRISM: Political & Rights Issues & Social Movements 1-1-1932 Social insurance Grace M. Burnham Find similar works at: https://stars.library.ucf.edu/prism University of Central Florida Libraries http://library.ucf.edu This Book is brought to you for free and open access by STARS. It has been accepted for inclusion in PRISM: Political & Rights Issues & Social Movements by an authorized administrator of STARS. For more information, please contact [email protected]. Recommended Citation Burnham, Grace M., "Social insurance" (1932). PRISM: Political & Rights Issues & Social Movements. 445. https://stars.library.ucf.edu/prism/445 to American and other bond- cope with the vast army of . r mtlyunemployed workem, desperate for lac%. of food Idlreftrirse in Great Britain the workers forced on the gov- emment the Factory Acts, health Wance, and memploy- - oaent ~~, besides the dedWde" for the post-= of the UnempIopment Fund AdanClass CotPtrasts b the United States, the owdq ch,with its corn* control of the machinery of -t, take detmdmd pw auezom against every &eRtation of working class protesE. More than a&hM of the f*-born pop~thof voting age k bedfrom the franchise, The young workers, the most -tic fighters for change, are Mow voting age althoug$ nl%lsyfmalargepart of theindusttial~ny.TheNqm mmei of the ha,numbering approximately nine mIllton, ;r. ace prddgwithout the vote. I TBe employing class uses every means at its &pod to keep Ebe maws in dependence and Mty.Blacglisting and mtignmts agabt the foreign-born for participation in rewlutiomry activities; s wholade reign of tmor in the kkh a&mt the &orts of the new militant industrial unions and the Communist Party to organize Negro wakm side bysidewiEh tbeir wbftebrothersin the Qht a@ut exploitation ; brutat amaults and vidous jail mtams against workere who engage in rmempfogment demonstrations and meethgs d protest, are clear indications of the employing class &mi&against tbe workers. -
Social Security and Labor Welfare (MBA-961)
Social Security and Labor Welfare (MBA-961) Q.1 What is the concept of Social Security? Ans. The idea behind the concept of social security is that the state shall be responsible for protecting its citizens against certain contingencies of life. There is no such definition of social security which may be country to country according to the prevailing social legislations, traditions ideals. The basic principle of social security implies collective action by the community to help a member against misfortunes and wants he cannot meet with his own resources. It is based on business ethics “ideals of human dignity and social justice”. Social security is the security that society furnishes through appropriate organizations against certain risks to which its members are exposed. Broadly speaking the idea of social security is that “The state shall make itself responsible for ensuring a minimum standard of material welfare to all its citizen on a basis wide enough to cover all contingencies of life from womb to the tomb. According to ILO “Social security is the protection which society provides for its members through a series of public measures against the economic and social distress resulting from sickness, maternity, employment injury, unemployment, invalidity, old age and death. These measures are also of a great importance to a country which is on the way of large scale industrialization as they improve employee’s morale by providing sense of security to them again various industrial hazards.” In fact social security is an attack on five “Giants” namely Want, Disease, Ignorance, Squalor and illness. Security against giant of “squalor” mean security against all those evils which come through the unplanned and unorganized growth of cities. -
Social Insurance Reform in Czechoslovakia
the Government, however, was very Social Insurance Reform in Czechoslovakia: weak in the beginning, since all power Background and Plans then rested with the local revolution• ary committees, which were loosely By Max Bloch* organized under regional revolution• ary committees. Even when central• Slovaks in agricultural Hungary were ized authority was gradually restored, DEVELOPMENT OF PLANS for a unified, it was only nominally held by the Gov- Nation-wide program of social insur• generally restricted to the status of unskilled laborers. Thus the forma• ernment, actually being exercised by ance for Czechoslovakia and adoption the TJRO, the central committee of of a 2-year plan for the rehabilitation tion of the Republic of Czechoslovakia in 1918 brought together two groups trade-unions. At present, the influ• of its national economy appear to ence of the official Government is pave the way for eventual long-range having different histories, different economies, and even different legal rather strong again in the western solution of the present difficulties be• (Czech) parts of the country, but each setting the social insurance program systems. Immediate and complete unification was impossible. Indeed, member of the Government has a in that country. Fulfillment of the special deputy for Slovakia, and as a program is not in early prospect be• no uniform system of laws for the country as a whole has yet been result his own influence on Slovakian cause of deep-rooted differences in the affairs is rather weak. laws, customs, and economic activi• achieved. ties of the two ethnic branches which When the new Republic was formed, New legislation is badly needed to make up this Nation and because of decentralization of authority became straighten out the chaotic legal situa• the present unsettled condition of the an important political objective of tion now applying in all branches of country's postwar economy, but at some groups. -
The Social Security Insurance Scheme for Artists and Writers a Quick Overview
The Social Security Insurance Scheme for Artists and Writers A Quick Overview Since the introduction of 'Artists' Social Security' in 1983, self-employed/freelance artists and publicists (including writers, journalists, editors) have been included in the statutory social insurance system. Special feature: The artists/writers need to pay only approximately half of the cost of their contributions. This puts them in the same favourable position as employees, as the second part of the contribution is financed via a levy paid by companies which utilise artistic and journalistic/written works (e.g. galleries, music schools, theatres, radio stations, advertising agencies, publishing houses) and via a Federal Government grant. Which preconditions do I need to fulfil in order to enjoy the benefits of the Artists' Social Security Insurance Scheme? All members must work professionally as self-employed/freelance artists/writers with the purpose of earning a living. The definition as to what constitutes an 'artist' within the meaning of the Law governing Social Security for Artists and Writers is in accordance with the typical occupational profiles. A graphic designer, for example, is defined as an artist for this purpose, whereas a cabinet maker is considered to be a craftsman rather than an artist. The wording of the law considers a music teacher to be an artist. In boundary cases, the property of being an artist or not depends upon whether the person in question is recognised as an artist within the relevant professional circles (professional recognition indicated e. g. by membership of artistic associations or by participation in art exhibitions). The term 'publicist' mainly encompasses writers/ authors and journalists.