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REDISTRIBUTIVE OUTCOMES OF SICKNESS INSURANCE ON INCOME: AN EMPIRICAL STUDY OF SOCIAL INSURANCE INSTITUTIONS
Author(s) -
Khan Jahangir,
Jansson Bjarne
Publication year - 2008
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/j.1475-4991.2007.00261.x
Subject(s) - earnings , economics , social security , inequality , typology , social insurance , educational attainment , demographic economics , economic inequality , public economics , economic growth , finance , geography , mathematical analysis , mathematics , archaeology , market economy
We analyzed the redistributive outcomes of sickness benefits using a typology of social insurance institutions, including four different systems, after adjusting for sickness risk factors. The aim is to empirically observe if the expected redistributive pattern of the typology could be verified whether or not considering the variations in sickness risk across the countries. Data on household earnings and sickness benefits in ten countries and for different years were taken from the Luxembourg Income Study. We also used data on labor force demography and educational attainment. Gini coefficients were used for measuring earnings inequality. Relative changes in earnings inequality for sickness benefits were predicted by social insurance institutional dummies using multiple regression analyses. Among the four different schemes, the encompassing system is found to be most redistributive, followed by basic security and targeting systems. The corporatist system has shown no significant difference from the encompassing system in redistributive outcomes.