Protecting All : Risk Sharing for a Diverse and Diversifying World of Work / Truman Packard.

Format:

Book

Government document

Author/Creator:

Packard, Truman G., 1972-

Contributor:

Packard, Truman G., 1972-

Series:

World Bank e-Library.

Human Development Perspectives

Language:

English

Subjects (All):

Employment (Economic theory).

Physical Description:

1 online resource (290 pages)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : The World Bank, 2019.

System Details:

data file

Summary:

"Socially inclusive growth is the talk of the town in developing countries. But to go from talk to walk these countries face a critical task: reconstructing their welfare states given the failures of the standard Bismarckian model and the challenges posed by rapid technological change. This book-known to many as the White Paper-is indispensable for tackling this task. It develops a clear conceptual framework to helppolicy makers understand this complex issue, set clear objectives, evaluate trade-offs, and chart a coherent path of reform. A much-needed and very welcome contribution." --Santiago Levy, Senior Fellow-Global Economy and Development, Brookings Economic and Social Policy in Latin America Initiative, Brookings Institution "Most countries have failed to support people adequately as the combination of globalization and technology changes the structure of their economies and their jobs. This has fostered a backlash in which economic insecurity is widespread and support for populist policies is on the rise. We can do much better than this by sharing risks and providing a guaranteed minimum to everyone. This important book lays out a set of policies that strikes a new balance between economic flexibility and individual security that is relevant to both advanced and developing countries." --Minouche Shafik, Director, London School of Economics and Political Science" Economic insecurity confronts working people around the world today. To overcome this insecurity through suitable risk-sharing interventions is a policy challenge of the first order. This exceptionally thoughtful and clearly written book charts a course for replacing employment-based risk-sharing policies with social insurance+ "based ones, financed by general revenues with the broadest possible base. The resultant Flexicuritymodel promises 'a more robust and resilient policy response to a diverse and fluid world of work.'" --Gary Fields, Professor of International and Comparative Labor and Professor of Economics, Cornell University "Protecting All presents thoughtful, thorough, and bold proposals to achieve universal social protection in a modern welfare state. This lucid document identifies implementable policies for poverty prevention, coping with livelihood shocks, and managing labor market risks that range from state-guaranteed publicly funded income floors to mandated consumption-smoothing mechanisms funded by individual contributions to privately financed incentivized and purely voluntary consumption-smoothing schemes. Clearly written, rich with ideas, and relevant for countries at all income levels, Protecting All is bound to become an essential reference for policy makers and policy analysts focused on (re)designing social protection systems that achieve key social goals in ways consistent with fast-changing labor markets, fiscal sustainability, and economic efficiency and growth." --Nora Lustig, Professor of Latin American Economics and Director of the Commitment to Equity Institute, Tulane University.

Contents:

Front Cover

Contents

Foreword

Acknowledgments

About the Authors

Abbreviations

Overview

Statement of Objectives and Scope

The Need for a More Effective and Relevant Risk-Sharing Model

The Policy Package for Poverty Prevention and Livelihood Shocks

Helping People Manage Labor Market Risks and Uncertainty

Financing and Implementation Challenges: An Aspiration within Reach

Note

References

Chapter 1: Prevailing Risk-Sharing Policies and Drivers of Disruption in the World of Work

The Enduring Legacy of Employment-Based Risk-Sharing Institutions

Historical and Institutional Foundations of Prevailing Risk-Sharing Policies

Global Drivers of Disruption and Their Impact on the World of Work

Notes

Chapter 2: The Conceptual Underpinnings of Risk-Sharing Policy and the Changing Nature of Losses

Insurance Choices in the Face of Shocks

Poverty in a Risk Framework

Policies Should Augment What People Do for Themselves

Options for Managing Aggregate Shocks and Losses from a Policy Maker's Perspective

Drivers of Disruption and the Changing Nature of Shocks

Conceptual Insights and Immediate Policy Implications

Chapter 3: From an Employment-Based to a Comprehensive Model of Risk Sharing

The Core of Insurance Assistance: Guaranteed Minimum Poverty Prevention

Coverage against Catastrophic Losses and Further Mandated Arrangements

Nudged and Purely Voluntary Insurance

Simulations to Inform a Prudent Debate of Policy Options

Key Principles for Designing the Core Minimum of Guaranteed Protections

Chapter 4: Labor Policy for a Diverse and Diversifying World of Work

Fundamentals: Remove Policy Biases That Put Working People at a Disadvantage.

Labor Market Regulation in Low- and Middle-Income Countries: Off the Plateau?

Flexibility and Greater Neutrality with Respect to Where and How People Work

Augmented and Assertive Employment Assistance

Targeted Measures to "Crowd In" Private Investment for Jobs and Productivity

Crafting Labor Policy in a Risk-Sharing Framework

Chapter 5: Charting the Course for a Challenging Transition

How Can Countries Finance the New Protections Proposed?

How Can the New Package of Protection Be Implemented?

How Ready Are Countries to Shift to a New Risk-Sharing Model?

Chapter 6: Conclusions and Final Considerations

Risk-Sharing Policy for a Diverse and Diversifying World of Work

Progressive Universality: Further Lessons from Health Policy

Labor Market Policies for the Human Capitalist

Appendix A: Conceptual Framework: Individual Choice in the Face of Risk and Uncertainty

Appendix B: Key Parameters of a Negative Income Tax and a Universal Basic Incom

Appendix C: Policy Reform Simulations

Boxes

Box 1.1 Caesar, Bismarck, and Seddon

Box 1.2 One Billion Migrants

Box 2.1 Covering the Costs of Long-Term Care in the Face of Uncertainty

Box 2.2 When Are Private Goods Public Goods? Lessons from Universal Health Coverage

Box 3.1 The Individual or the Household as the Unit of Analysis?

Box 3.2 Experiences with Universal Basic Incomes and Negative Income Taxes

Box 3.3 Blurring the Distinction between "Contributory" and "Noncontributory": Social Pensions in China

Box 4.1 Minimum Wage Formulas: Renewed Respectability, with a Productivity Argument

Box 4.2 When More Women Work, People Work Longer

Box 4.3 Kenya's Youth Employment and Opportunities Project

Box 4.4 A Purchaser-Provider Split in Provision of Active Labor Measures.

Box 4.5 Permanent, Systemic Shocks: Responses to Job Dislocation Caused by Structural Changes

Box 5.1 More Resources for Public Policy from Better Balance-Sheet Management

Box 5.2 The Puzzling Persistence of the Payroll Tax

Box 5.3 How "Contributory" Are Pension Systems, Really?

Figures

Figure O.1 Changes in Coverage of Employment-Based Social Insurance Have Been Disappointing

Figure O.2 Convergence of Work Arrangements and Social Protection Coverage Is Happening-but Not as Expected

Figure O.3 Countries Should Move Toward A Comprehensive Policy Package of Protection from Risk and Uncertainty

Figure O.4 Countries Can Take Specific Steps to Move from Current Risk Sharing to Comprehensive Coverage

Figure O.5 To Minimize Adverse Labor Market Outcomes, Countries Should Avoid Regulatory Extremes

Figure O.6 Labor Policies Are Also Tools for Effective Risk Sharing

Figure 1.1 Since the Early- and Mid-Twentieth Century, Europe's Industrial-Era Risk-Sharing Model Has Been Adopted Widely, Even in Preindustrial Economies

Figure 1.2 Most Poor People Depend on Work for Their Livelihoods, and Work Is Very Diverse

Figure 1.3 Participation in Employment-Based, Contributory Social Insurance Remains Stagnant in Most Low- and Middle-Income Countries

Figure 1.4 The Path and Direction of Structural Transformation and Economic Development Does Not Appear as Certain for African Countries as It Was for East Asian Countries

Figure 1.5 As More Technology Is Adopted, the Work That People Do Is Becoming More Intensive in Nonroutine Skills, Both Cognitive and Interpersonal

Figure 1.6 Transitions across Employment Forms, in and out of the Labor Force, Are Becoming More Likely

Figure 1.7 Nonstandard Employment Is Gaining Ground in Several Countries, Though Trends Vary Significantly.

Figure 1.8 The Global Share of the Working-Age Population Has Begun a Steady Decline

Figure 1.9 Two Sides of the Same Demographic Coin? Europe's Aging Populations Stare over the Mediterranean at Youth Bulges in North Africa and the Middle East

Figure 1.10 Populations Are Aging Faster Than the Economy Is Formalizing

Figure 1.11 A Declining Labor Share Is Provoking Debate about Relevance of Prevailing Risk-Sharing Policies

Figure 1.12 Changes in the Labor Share in National Income Can Be Associated with Changes in Inequality

Figure 2.1 When Risk Markets Are Available and Function Well, It Is Most Efficient to Pool the Risk of Large, Infrequent Losses

Figure B2.1.1 The Low Penetration of Long-Term Care Insurance Reflects the Challenges of Uncertainty for Its Market Pricing

Figure 2.2 Market Failures-Particularly Good and Bad Externalities-Require Policy Actions to Share Risks Efficiently

Figure 2.3 Policy Options (Prevention, Saving, and Risk Pooling) Vary According to the Size and Frequency of Losses and the Extent and Ways in Which the Risk Market Fails to Cover Them

Figure 2.4 A Conceptually Comprehensive Package of Risk-Sharing Instruments Can Be Designed According to the Nature of Losses and Market Failures

Figure 3.1 Governments Should Aspire to Offer People a Comprehensive Package of Insurance Assistance

Figure 3.2 Minimum Guarantee Programs Have the Same Basic Function but Take Many Forms

Figure 3.3 When Aggregated, Safety-Net Programs in Brazil and Poland Begin to Resemble a Minimum Poverty-Prevention Guarantee

Figure 3.4 The Merits and Drawbacks of More Extensive Poverty Prevention Guarantee Instruments Have Been Debated for Years

Figure 3.5 Along With Targeted Transfers, Indonesia Provides a Declining Subsidy of Social Health Insurance Premiums.

Figure 3.6 Tapering a Universal Poverty Prevention Benefit Makes It More Affordable

Figure 3.7 A Tapered Benefit Has a Greater Impact on Poverty for the Same Level of Expenditure

Figure 3.8 Taking Taxation into Account Shows a Promising Level and Distribution of Costs

Figure 3.9 Can Statutory Contribution Rates Be Lowered?

Figure 3.10 Tapering the Poverty Prevention Benefit Increases the Affordability of the Proposed New Arrangements

Figure 3.11 Statutory Contributions Can Be Lowered Even When Providing a More Generous Pension Plan

Figure 3.12 The Integrated Model Can Provide a More Generous Pension Plan with a More Generous Tapered Universal Social Insurance

Figure 4.1 In the Face of Uncertainty, a Resilient Pro-work Strategy Starts by Eliminating Policies That Bias Firm Choices against Labor

Figure 4.2 To Minimize Adverse Labor Market Outcomes, Countries Should Avoid Regulatory Extremes

Figure 4.3 Off the "Plateau"? The Regulatory Stances of Many Governments of Low- and Middle-Income Countries Regarding Their Labor Markets Appear Extreme

Figure 4.4 A "Flexicurity" Approach to Labor Policy Requires That Governments Invest More in Protection Than Most Do Currently

Figure 4.5 From "Tripartite" to "Pentapartite"? A Diverse and Diversifying World of Work Requires a More Representative Negotiating Table

Figure 4.6 Specific Active Labor Measures Should Be Deployed According to the Nature of the Shocks That Created the Need for Assistance

Figure 4.7 Job-Linked Externalities Are a Rationale for Catalytic Subsidies

Figure 4.8 A Comprehensive Package of Labor Policies Can Also Be Derived from Risk-Sharing Principles

Figure 5.1 Many Governments Already Allocate Substantial Resources to Prevent Poverty and Inequality, Even if the Net Impact of This Spending Can Be Regressive.

Figure 5.2 Despite Stated Objectives of Poverty Alleviation, in Many Countries the Benefits from Fuel Price Subsidies "Taper Away" toward the Bottom of the Welfare Distribution.

Notes:

Description based on print version record.

ISBN:

9781464814280

1464814287

Publisher Number:

10.1596/978-1-4648-1427-3