Search Results (26)

This paper investigates whether and how income redistribution in China affects inequality of opportunity (IOp), defined as the share of income inequality attributable to circumstances beyond individual control. Using nationally representative data from the China Household Finance Survey (CHFS) and employing an ex-ante parametric approach with Shapley decomposition, we analyze the effects of three redistributive channels: taxation, government transfers, and inter-household transfers. The results show that taxation modestly reduces both inequality of outcome (IO) and IOp. In contrast, government transfers, particularly pensions, increase IOp due to institutional segmentation associated with the hukou system. Inter-household transfers also contribute to higher IOp by reinforcing intergenerational advantages. Additionally, we find that the classification of pensions significantly alters the redistribution’s measured impact. When pensions are treated as deferred income rather than government transfers, the second distribution reduces IOp more substantially. These findings suggest that redistributive policy effectiveness depends not only on the magnitude of redistribution but also on its institutional design and classification logic. The study provides new evidence on how fiscal and informal transfers affect structural inequality and calls for greater conceptual clarity in redistribution evaluation frameworks. Full article

As pension benefits from statutory public schemes become less generous, and many countries face pension-savings crises, the willingness to participate in supplementary retirement saving instruments becomes crucial for sustainable financial well-being. The main objective of this article is to present how trust and financial literacy influence the choice of sustainable auto-enrolment pension scheme as a private and supplementary pension savings. The study highlighted factors influencing participation in auto-enrollment and private supplementary pension savings. The study focuses mainly on financial literacy and trust. We used the CAWI method with 857 interviews in Poland—the first country in Central and Eastern Europe to introduce an auto-enrolment pension system. Our study uses multivariable data-mining tools, and several regression models were applied. We used Logistic Regression (LR), Multivariate Linear Regression (MLR), and Factor Analysis of Mixed Data (FAMD) to support the LR analysis. We propose four regression models. Our findings present that: 1. The lower the consumer’s knowledge level, the more their decisions are based on trust. 2. Trust in the state, rather than trust in financial institutions, plays a crucial role for people with low financial literacy, which is a critical factor in choosing the auto-enrolment option for pension savings. 3. Men had higher odds of auto-enrolment pension saving than women. 4. Employees of economic universities and academics had higher odds of participating in capital pension plans than those of general universities and non-academics. Our findings can signal to governments and policymakers about factors influencing the choice of auto-enrolment supplementary retirement savings. These findings strengthen the role of sustainable economic education. Full article

As a new driving force for economic growth, the digital economy has had a profound impact on the labor market. While the existing research has explored the role of the digital economy in job substitution, creation, and polarization effects, the research on the impact on the social insurance fund income is relatively scarce. In view of this, based on the provincial panel data from 2011 to 2020, this paper analyzes the effect and mechanism of the digital economy on the pension income by using the moderated chain intermediary model and random forest regression. The results show that: (1) the employment scale, labor income, industrial structure, and government intervention are the important factors affecting the income of urban pension insurance; (2) the development of the digital economy has a negative impact on the income of the basic pension insurance fund for urban employees, and the chain intermediary effect that indirectly affects the employment scale and labor income through promoting the upgrading of the industrial structure has a negative impact on the income of the pension insurance fund. The employment scale and employment income of the industries with high and low substitution rates have a significant impact; (3) government intervention can regulate the negative impact of the digital economy development on the pension fund income. Furthermore, taking the transformation and reform of social security collection and payment institutions in July 2018 as an opportunity, the analysis using the event study method found that the average level of the pension income in the regions where the tax department was fully responsible increased significantly compared with the regions where the social security department collected it. Therefore, in order to maintain the sustainability of the pension fund income and effectively prevent the problem of old-age poverty caused by the “silver wave” and the lack of protection of workers’ rights and interests, institutional innovation should be promoted, the current tax policy should be adjusted, and the inclusiveness and flexibility of the pension security system should be improved. Digital technology should be used to improve the government’s intervention capacity and management level, and promote the positive interaction between the digital economy and the pension insurance system. Full article

China has been successful in getting her people to live longer. But, merely adding years to life and not life to years poses immense socio-economic challenges. However, not much is known about the effects of government policy and program interventions on changes in how well the elderly live over the years. Accordingly, we cross-temporally meta-analyzed 45 research reports (N = 36,352) that utilized the health-related quality of life (HRQoL) scale (SF-36) from 2000 to 2020. We found that: (1) the bodily pain, general health, vitality, and mental health of the elderly deteriorated over time; however, their physical and emotional roles, as well as their social functioning, improved with time; (2) the rising dependency ratio impoverished the HRQoL of the elderly; (3) the HRQoL indicators of the elderly revealed positive gains under the home-based care model whilst they showed a downward trend under the institutional pension model; (4) the HRQoL indicators of the elderly in economically developed areas produced mixed results; but, they all worsened over the years in economically underdeveloped areas. Thus, more investment efforts from the government and private entities are needed to reduce the dependency ratio and to improve the lives of the elderly under institutional care and/or in economically underdeveloped areas. Full article

This research uses representative survey data to elicit the annuitisation preferences of members of the Slovak-funded private pension pillar. The research explores the impact of socioeconomic and sociodemographic variables, as well as some exogenous factors on annuity choices. The following choices are analysed: (i) taking an annuity upon retirement; (ii) delaying the uptake of an annuity and accumulating savings beyond the official age of retirement; and (iii) leaving accumulated wealth to heirs (bequest motive). The paper provides some original contributions. Firstly, it relates annuity choices to intrafamily risk sharing. Attention is paid to household structure, income levels, and the presence of dependent children. Secondly, the importance of diverse information resources on the formation of annuity preferences is examined. We found that professional advice provided by financial institutions and government bodies was associated with higher probabilities of annuity uptake. A disproportional reliance on informal channels may explain the higher preference towards bequest motives in rural areas. Thirdly, annuity choices are studied in relation to alternative sources of income in old age. A combination of social security pensions and bequest-sharing arrangements may offset the need for the annuitisation of pension wealth. Full article

In Chinese households, there is a significant shift away from basing poverty alleviation on the relative poverty line as opposed to the absolute poverty line. Based on VER and the concept of poverty capacities, this study evaluated the impact of development capacities and indicators on the vulnerability to poverty of elderly households. The three most important findings are as follows: (1) This study employed the multidimensional vulnerability methodology to evaluate the effects of potential factors on the Chinese elderly household’s vulnerability. Rather than analysing current poverty, this study focused on the estimation of future poverty, which is prospective. (2) Contrary to the expectations of empirical studies, the application of difference-in-difference and propensity score matching in this study revealed that the government’s institutional pension reform decreases the vulnerability rate further. (3) Both development capacities and indicators are critical determinants of further poverty, and in order to effectively alleviate poverty, policymakers should strengthen capacities and grant rights to vulnerable households. Full article

Pension funds have become major targets for the incorporation of climate change into their investment decisions. Recently, divestment from carbon intensive companies or industries has been the object of a wave of campaigns directed at these institutional investors. This paper uses Foucault’s dispositive of security to investigate the decisions of one organization, the New York State Common Retirement Fund, which in 2021 divested from seven oil sands companies. Conceptualizing divestment within a security dispositive helps us build theory which understands divestment within existing security-oriented arrangements. It shows how changes build upon the existing dispositive, and that by looking to existing governing arrangements we can see elements that act as operators to change their direction and emphasis. In the case of pension fund divestment, risk is the operator that both sustains the investment function and also tilts the arrangement towards climate change. In these existing arrangements lay the ingredients for future social relations. Full article

As the aging of Chinese society continues to deepen, it is particularly important for the development of the national elderly care service industry to further strengthen the government’s supervision of private pension institutions and improve their management awareness of standardized operations. The strategic behaviors among the participants of senior care service regulation have not been well studied yet. In the process of senior care service regulation, there is a certain game association among three stakeholders, namely, government departments, private pension institutions, and the elderly. This paper firstly constructs an evolutionary game model including the above three subjects and analyzes the evolutionary path of strategic behaviors of each subject and the evolutionary stabilization strategy of the system. On this basis, the feasibility of the evolutionary stabilization strategy of the system is further verified through simulation experiments, and the effects of different initial conditions and key parameters on the evolutionary process and results are discussed. The research results show that (1) There are four ESSs in the pension service supervision system, and revenue is the decisive factor that affects the evolution of the stakeholders’ strategy. (2) The final evolution result of the system is not necessarily related to the initial strategy value of each agent, but the size of the initial strategy value will affect the rate of each agent’s evolution to a stable state. (3) The increase in the success rate of government regulation, subsidy coefficient and punishment coefficient, or the reduction in the cost of regulation and the fixed subsidy for the elderly can effectively promote the standardized operation of private pension institutions, but the large additional benefits will lead to their tendency to operate in violation of regulations. The research results can provide reference and a basis for government departments to formulate the regulation policy for elderly care institutions. Full article

With the progression of both the climate crisis and financial capitalism, institutional investors play an increasingly central role in fossil fuel companies’ business decisions. Against this backdrop, this article investigates the underlying rationales of Danish pension funds’ climate-related investment decisions analyzed from the perspective of one of the dominant finance theories today on the governance relationship between investors and corporations: agency theory. Hitherto, investors’ climate-related investment decisions have not yet been studied from the perspective of how investors’ actions align with the assumptions of agency theory. Thus, this study explores the degree to which select Danish pension funds’ climate-related investment decisions regarding Royal Dutch Shell can be verified according to agency theory. First, deploying Foucault’s notion of a “truth regime”, the article analyzes how a certain action can be defined as true, read from the perspective of investment assumptions derived from agency theory, a truth regime of agency theory. Second, the paper explores the degree to which this truth regime can be identified in the climate-related investment decisions of the three Danish pension funds, PFA, PKA, and AkademikerPension, regarding Shell’s general assembly, 2021. The investigation concludes that the assumptions of the agency theory truth regime constitute a part of the central reasonings in financial capitalism and that, insofar as investors significantly align with the prescriptions of agency theory, it substantially reduces their possibilities to take Paris-aligned investment decisions. Full article

Iceland and the Netherlands presently have the best pension systems in the world, according to the Mercer CFA Institute Global Pension Index 2021. In the meantime, Indonesia ranked 35th. This study compares and analyzes Iceland’s and the Netherlands’ current pension systems as the finest in the world, as well as the future threats to their pension systems, and applies the lessons learned from both nations to Indonesia, which intends to alter its public pension system. According to a comparative analysis of Iceland, the Netherlands, and Indonesia, the overall pension systems of Iceland and the Netherlands are advantageous for ensuring adequacy and sustainability of the pension system. However, Iceland and the Netherlands may suffer adequacy and sustainability issues in the long run. As a result, they should continue to evaluate their own countries’ present structures, notably in demographics. Concerning the Indonesia pension system, Indonesia policymakers should consider enforcing the social security system, since these systems have enabled Iceland and the Netherlands to have lower poverty rates. Furthermore, the Indonesian government should strengthen the existing PAYG and DB pension systems, raise the minimum pension eligibility age, contribute to the system regularly, and apply the cost-of-living adjustments to improve the adequacy and sustainability of the civil service pension system. Simultaneously, civil servants should contribute more to ensure the long-term viability of this pension system. The Indonesian government should implement such adjustments, as they would enhance budgetary sustainability in the long run. Full article

With the growing number of environmental, social, and governance (ESG) problems, many companies have begun to implement more sustainable business practices. In the midst of this change, institutional shareholders declare and adopt socially responsible investment procedures, which is a way of engaging in investor activism. Despite the growing interest in investor activism following the introduction of the stewardship code, little attention has been paid to how socially responsible investment practices of institutional investors affect the non-financial value of the pillars of environmental, social, and governance as well as financial performance, including short-term accounting (ROE, ROA) and long-term market performance (Tobin q). The current study examines whether the national pension fund (NPF), the world’s third-largest Korean pension fund, can increase the ESG performance of investee firms in addition to accounting and market performance through institutional investors’ shareholding. This study, by applying path analysis, attempts to explore the relationship between the NPF’s socially responsible investing, ESG, and the financial performance of the investee firms. This research offers evidence that ESG performance acts as a moderator or a mediator between NPF’s shareholding and financial performance. Full article

Background: The aim of this research was to analyze trends in social security applications in Italy as a result of the onset of atrial fibrillation, analyzing data pertaining to the classification of professions and assessing the economic impact on the social security system. Methods: We analyzed all applications for invalidity allowances and invalidity pensions throughout Italy over a 10-year period from 01.01.2009 to 31.12.2019, giving specific attention to all reports indicating atrial fibrillation as the principal diagnosis (Cod. ICD-9-CM 427.31). We then extracted the relative expenditure data for said benefits. The results of all analyses have been collated in tables. Results: Over the period in question, a total of 3468 applications for assistance were filed throughout Italy indicating a diagnosis of atrial fibrillation, of which 58% were rejected, 41% qualified for an invalidity allowance, and only 1.1% qualified for a pension. On average, every year, 1100 workers received social security benefits as a result of a diagnosis of atrial fibrillation, which equates to an average annual expenditure of EUR 10 million. A comparison of the data from the first observation year (2009) with data from the last (2019) shows a rising trend in the number of beneficiaries and consequently in expenses. Conclusions: The social security assistance provided by the Italian government by means of the National Institute of Social Security is fundamental to social cohesion and to those who are either permanently disabled from working or those with a significantly diminished earning capacity. This assistance is associated with a significant financial cost, which requires careful monitoring. Full article

Thailand recently reached “aged” society status, signifying that over twenty percent of the population is over sixty. Considering that Thailand has a low literacy rate, a fractured pension system, and no regulations that could provide sufficient income to cover basic needs after retirement, there will be economic repercussions if the situation is not handled soon. The government and financial institutions have been encouraging Thai citizens to prepare retirement plans but lack understanding of the root causes of being unprepared for retirement. The objectives of this qualitative research were to explore the behavior, knowledge, and preparedness towards retirement in governmental and private wageworkers. Moreover, the study aims to identify the pain points of being unprepared for retirement and deliver the optimal solutions and sustainable retirement plans suitable for each segment. This article employed a sample of 46 wageworkers in Khon Kaen, Thailand with ages ranging from 20 to 59 years old. Qualitative semi-structured in-depth interviews and qualitative content analysis were conducted with the respondents asking about their income, expenses, pains, and problems towards saving for retirement, their desired outcome after they retire, and how they would achieve it. The framework used for the in-depth qualitative interview was by utilizing the customer, problem, and solution zoom tool. The research contributions were to facilitate Thai citizens being ready for retirement stages and overcome post-retirement risks sustainably. The results revealed that the sample could be divided into four segments by their characteristics. Two low-income segments share the same traits and behaviors that can prove that financial literacy plays an essential role in retirement readiness. Lower-income wage workers do not have their money put in place to prepare for retirement. Additionally, this article discussed the study’s implications for wageworkers, employers, and the Thai government. This article recommended that Thai citizens should accumulate wealth in various ways, including investment in financial assets and earning additional income from a second job. Employers should provide suitable retirement contribution schemes. The government should launch a policy enabling above-60-year-old seniors to continue working. Full article

In this paper, we analyze the relationship between Chief Financial Officer (CFO) compensation and Corporate Sustainability (CS) by relying on stakeholder-agent theory and institutional theory. Taking a closer look at the German DAX30 and MDAX firms for the business years 2014–2018 (313 firm-year observations), we perform regression and correlation analyses to determine if the different CFO compensation components are related to CS. Our analyses use the environmental, social, governance (ESG) performance as a proxy for CS, determined by the Asset Four database of Thomson Reuters and the CFO compensation data from the Beck et al. (2020) database, and reveal a positive relationship between CS and CFO compensation for pension and stock compensation. Based on our knowledge, this study is the first empirical study that takes a closer look at the relationship between the different CFO compensation components and CS for the German DAX30 and MDAX firms. This result comes with important implications concerning the design of CFO compensation and for future research. Full article

The study aimed to investigate the drivers of demand for healthcare in South Africa 26 years after democracy. The pattern healthcare demand by households in South Africa is that most households use public healthcare services particularly public clinics compared to private and traditional healthcare facilities. Using conditional probability models, the logit model to be more specific, the results revealed that households head who is unemployed, households who do not have a business, households who were not receiving pension money, had a greater probability of demand for public healthcare institutions. On the other hand, being male, being White, Indian and Coloured, being a property owner and being not a grant beneficiary, reduces the probability of demand for public healthcare facilities in South Africa. As a result, the study recommends more investment in public healthcare but more in public clinics in South Africa due to the high percentage of households using these services. Also, the government must consider investing more in the maintenance and improvement of the welfare of nurses in the country considering the huge role they play in the delivery of healthcare to the citizens. Full article