Effects of social (security) policy
•Achieving objectives ?
•   Societal objectives
•Security, equality: coverage,   access/eligibility, adequacy, generosity – reduction of
inequality, poverty
•‚Rationality‘ (in any public policy, Ringen):
–Legitimacy – ethical choice (objectives, instruments), trust
–Effectiveness (goals – means, costs)
–Absence of side-effects
–Consistency: ethical, redistributive, economic

Broader effects of the WS
•Learning (normative, integrative) effects:
•norms and values, trust, moral, attitudes, behaviour •Political effects (policy dissatisfaction,
voting and political support) •Economic effects (+ stabilisation of economic environment,
employability, labour productivity, - spedings of resources, labour costs, disincentives)
•

Figure 1. Satisfaction with democracy (country averages, 0–10 scale), ESS 2012



Figure 2. Policy deficit regarding the reduction of poverty: expectations for government attempts
to reduce poverty, and assessments of the government’s success in this area (scale of 0–10, country
averages)

Figure 3. Policy deficit regarding the reduction of income inequality: expectations for
government attempts to reduce income inequality, and assessments of the government’s
success in this area (scale 0–10, country averages)

Dependent: SWD

Model 1
Model 2
Model 3
Poverty-reduction policy deficit
-0.13***
-0.13***
-0.26***
Inequality-policy deficit
-0.09***
-0.09***
-0.13***
Log GDP pc
1.18***
2.15***
2.12***
GDP (change 2007-2011)
2.34***
0.95***
1.09***
Unempl. rate (change 2007-2011)
-0.18***
-0.12***
-0.14***
Social expend. (change 2007-2011)
1.46***
0.44**
0.94***
Conservative

ref.
ref.
Post-Communist

0.66***
0.69***
Liberal

0.20***
0.27***
Mediterranean

-0.48***
-0.25**
Social-Democratic

0.86***
1.02***
Constant
-6.99***
-15.85***
-14.99***
R-squared
0.247
0.253
0.257

Illustrating RED effects:
Factors and measures of effectiveness of social transfers (D. Mitchell)
•
•Inputs – sources (volume of taxes, transfers)
•Production (eligibility criteria, targeting, progressivity, generosity)
•Outputs (size and incidence of transfers)
•Outcomes – effects (poverty and inequality reduction)

Factors and measures of effectiveness of social transfers (D. Mitchell)
•Need: pre-transfer poverty (pov headcount, pov gap)
•Generosity: ratio of transfers and pov gap
•Targeting: ratio of transfers accruing to the poor/used to reduce poverty gap
•Effectiveness: reduction of poverty (h, g)%
•Outcome: post-transfer poverty (pov headcount, pov gap)
•Need ? Sources ? Targeting ? Changes in behaviour ?
•
•

Effectiveness of social transfers in reducing poverty for the entire population (2007, SILC)
Without effect of pensions
poor before transfers
poor after transfers
effectiveness in reducing poverty
Sweden
28
11
62
Denmark
27
12
57
Finland
29
13
55
Spain
24
20
17
France
26
13
50
Germany
24
15
39
UK
30
19
 38
Czech Republic
20
10
50
Poland
27
17
38
Romania
32
25
22
EU 28
26
17
34

Effectiveness of social transfers in reducing poverty for the entire population (2012, SILC)
Without effect of pensions
poor before transfers
poor after transfers
effectiveness in reducing poverty
Sweden
27.5
15.5
44
Denmark
28
13
54
Hungary
27
14
48
Czech Republic
18
10.5
41
France
24
14.5
40
Germany
24
17
42
Austria
26
15
 42
Slovakia
20
13.5
32.5
Poland
26
17
35
Portugal
25
18
28
EU 28
26
18
31

Effectiveness of social transfers in reducing poverty for the entire population (2018, SILC)
Without effect of pensions
poor before transfers
poor after transfers
effectiveness in reducing poverty
Sweden
29
16
43
Denmark
24
13
47
Finland
27
12
54
Spain
28
22
23
France
24
13
45
Germany
30
16
47
UK
29
17
 42
Czech Republic
16
10
38
Poland
24
15
40
Romania
28
24
24
EU 28
26
17
34

Effectiveness of social transfers in reducing poverty for the entire population (2021, SILC)
Without effect of pensions
poor before transfers
poor after transfers
effectiveness in reducing poverty
Sweden
28
16
45
Denmark
27
12
54
Finland
26
11
54
Spain
30
22
30
France
26
14
47(20)
Germany
27
16
41
UK
-
-
-
Czech Republic
16
9
47
Poland
28
15
37(20)
Romania
28
23
18
EU 28
25
17
34 (20)

Effectiveness of social transfers in reducing poverty for children (2013, SILC)
Without effect of pensions
poor before transfers
poor after transfers
effectiveness in reducing poverty
Austria
40
19
 53
Germany
30
15
52
Hungary
44
23
47
France
34
18
47
Czech Republic
22
11
50
Denmark
25
9
66
Sweden
31
15
51
Slovakia
31
20
34
Poland
30
23
22
Portugal
32
24
23
EU 28
35
20
41