Documents earnings replacement rate 10 results

"Using survey data from the German Socio‐Economic Panel (SOEP), this paper analyses the extent to which alternative income sources, reactions within the household context, and redistribution by the state attenuate earnings losses after job displacement. Applying propensity score matching and fixed effects estimations, we find that income from self‐employment reduces the earnings gap only slightly and severance payments buffer losses in the short run. On the household level, we find little evidence for an added worker effect whereas redistribution by the state within the tax and transfer system mitigates income losses substantially."

"This paper considers using a cross-country microsimulation tax–benefit model for Europe, EUROMOD, to simulate the distribution of replacement rates for six European countries, Denmark, France, Germany, Italy, Spain, and the UK. In particular we show the important role of household composition and the presence of other household members' incomes in preserving the standard of living while out of work compared with the impact of the tax–benefit system. Given this strong influence of primary incomes, replacement rates are not necessarily the best indicator of the impact of the tax–benefit system in this respect. We therefore consider in addition an alternative measure, the participation tax rate."

" Until recently, social assistance and minimum income benefits have received relatively little attention in the comparative welfare state literature. Relying on two new indicators, this paper examines the development of minimum income benefits across 26 EU and other OECD countries. The real benefit level, the first indicator, is relatively easy to interpret, but international comparisons require adjustments for exchange rates and purchasing power, which can introduce variation that is not related to underlying policy changes. In the second indicator, the net minimum income replacement rate, this disadvantage is cancelled out by construction. Our analysis shows that real benefit levels increased in most countries, whilst replacement rates declined on average. A subsequent qualitative analysis of the changes in the benefit levels confirms that the increased benefit levels reflect policy changes and that the lower replacement rates do not reflect benefit cuts, but relatively larger wage increases. Such a widening gap between benefit levels and wages is in line with the policy agenda of ‘making work pay'. Finally, by analysing the extent to which changes in quantitative indicators reflect actual policy changes, this paper seeks to make a methodological contribution to the ongoing debate on the ‘dependent variable problem' in the welfare state literature. "

"Using panel data from a large sample of Canadian establishments, the authors examine whether there is any link between adoption of an employee profit-sharing plan and subsequent employee earnings. Overall, growth in employee earnings during the five-year period subsequent to adoption of profit sharing was significantly higher in establishments that had adopted profit sharing, as compared with those establishments that had not done so. Employees in establishments that paid high wages before profit sharing adoption appeared to benefit more than employees in other establishments, although employees in other establishments did eventually benefit from profit sharing."

"This article analyses the functioning of the pensions insurance system in the countries of the former Socialist Federal Republic of Yugoslavia. The first part of the article shows that the implemented reforms comprised stricter conditions for the realisation of pensions rights through an increase in the retirement age and a decrease in the statutory replacement rate. The second part of the article presents the main indicators of the functioning of the pensions systems. The analysis of the results achieved reveals an exceptionally unfavourable picture. This primarily refers to the unfavourable ratio of the number of insured and pensions beneficiaries due to high unemployment, resulting in a high deficit in the pensions system. The third part points to the need for, and direction of, further reforms of the pensions systems aiming at the creation of adequate and financially sustainable pensions systems. The conclusion summarises the results of the conducted analysis. "

"The main objective of this article is to determine, based on internal data, replacement rates for a defined benefit pension system, with two aims: the adequacy of pensions – measured in terms of the expenditure of retirees – and the sustainability of the system. For this purpose two instruments are used: the internal rate of return, and techniques based on systems of notional accounts. These figures, derived from internal data, will serve, by comparison with the replacement rate of the system, to assess whether the system tends more towards adequacy or sustainability. The system studied is that of Spain."

"This box reviews recent developments in short-time work and temporary lay-off schemes in the five largest euro area countries. It then calculates wage replacement rates and estimates take-up rates. Combining wage replacement rates with the estimated number of participants makes it possible to calculate the impact of short-time work on household disposable income. The box concludes that short-time work and temporary lay-off measures are significantly buffering the impact of COVID-19 on households' disposable income."

"Kurzarbeitergeld soll Betrieben in Krisenzeiten helfen, Entlassungen zu vermeiden, und den Lohn von Beschäftigten vorübergehend sichern. Anlässlich der Covid-19-Pandemie wurden die Konditionen beim Bezug von Kurzarbeitergeld vorübergehend großzügiger ausgestaltet. Das IAB hat Menschen, die zum Befragungszeitpunkt im Mai 2020 überwiegend sozialversicherungspflichtig beschäftigt waren, danach gefragt, welche Höhe des Kurzarbeitergeldes sie in bestimmten Situationen als angemessen erachten. Dabei zeigt sich, dass die als adäquat eingeschätzte Lohnersatzquote vom Einkommen abhängt und für Geringverdienende höher ist als für Personen mit einem höheren Verdienst. Bei längerem Arbeitsausfall würden die Befragten allerdings kein höheres Kurzarbeitergeld gewähren als in den ersten drei Monaten. Wenn dagegen die Betroffenen hohe Lebenshaltungskosten haben oder vom Unternehmen keinen Zuschuss zum Kurzarbeitergeld bekommen, sehen die Befragten eine höhere Lohnersatzquote als angemessen an."

"We analyze the impact of the COVID-19 pandemic and government policies on firms' aid takeup, layoff and furlough decisions. We collect new survey data for 10,642 small, medium and large Danish firms, and match to government records of all aid-supported furloughed workers during the pandemic as well as administrative accounting data. This is the first representative sample of firms reporting the pandemic's impact on their revenue and labor choices, showing a steep decline in revenue and a strong reported effect of labor aid take-up on lower job separations. Relative to a normal year, 30 percent more firms have experienced revenue declines. Comparing firms' actual layoff and furlough decisions to their reported counterfactual decisions in the absence of aid, we estimate 81,000 fewer workers were laid off and 285,000 workers were furloughed. Our results suggest the aid policy was effective in preserving job matches at the start of the pandemic. "