Do Tax-Benefit Packages Treat Families in the Same Manner When Unemployment Strikes?
| DOI | 10.1177/138826271301500405 |
| Date | 01 December 2013 |
| Published date | 01 December 2013 |
| Subject Matter | Article |
380 Intersentia
DO TAXBENEFIT PACKAGES TREAT
FAMILIES IN THE SAME MANNER
WHEN UNEMPLOYMENT STRIKES?
A F, S G S and J K*
Abstract
Social protection against unemployment is on the European agenda because of the
economic crisis. Since European family patterns have changed over the last three
decades, the social protection for unemployment may be very di erent during this
economic crisis from what it was previously. In particular the combination of more
diverse families and high unemployment raises the general question of how today’s
systems of social protection cater for di erent types of families and income groups.
Based on a micro-simulation analysis , this article examines how, and to what extent,
packages of social security prov ide support for various types of unemploye d families at
di erent income levels. e comparison is between four countr ies representing di erent
welfare state models and dominant family type s. Using the OECD Tax-Bene t model,
the article surveys the disposable income and provides a breakdown of bene ts for
di erent family types facing unemployment. It takes into account housing costs and
childcare costs, and the bene ts related to them. e analysis shows that unemployed
families experienc e di erent level s of support depending not only on the country they
live in, but also on their income level and family type. O en di erences between
families at di erent income levels within countries are l arger than di erences between
families at the same income level between countries. e analysis illustrates how
important it is to look beyond unemployment insurance and include family related
bene ts to understand the support provided to families face d with unemployment.
Keywords: childcare; di erent family types; family packages; micro-simulation;
unemployment
* Anders Freundt, University of Southern Denmark; Address: Rådmandsgade 40c, 5, lejl. 133 2200
Copenhagen N Denmark; phone: +45 51683932; e-mail: andersfreundt@hot mail.com; Simon
Grundt Straubinger, University of Southern Denmark; Address: Kragemosen 42 5250 Odense SV
Denmark; phone +45 2 2564154; e-mail: Sistr 08@student.sdu.dk ; Jon Kvist, University of Southern
Denmark; Addr ess: Campusvej 55 5230 Odense M; phone : +45 51718561; e-mail: jon@sa m.sdu.dk.
Do Tax-Bene t Packages Treat Familie s in the Same Manner whe n Unemployment Strikes?
European Jour nal of Social Sec urity, Volume 15 (2013), No. 4 381
1. INTRODUCTION
e economic crisis led to hig h levels of unemployment in many countries. In OECD
countries the average unemployment rate rose from 5.7per cent in the rst quarter
of 2008 to 8.7per cent at the end of 2009. Unemployment remained high in many
countries, with long-term unemployment on the rise during 2011 (OECD 2011a: 16).
Relatively high unemployment levels mask large cross-national di erences, even
within northern Europe. e UK and Denmark were hit harder by unemployment
than the Netherlands and Germany (ibid.: 20). Compared to earlier economic
crises, unemployment rose in a context of more diverse family structures. e
traditional male breadwinner model had for a long time given way to other family
structures, including dual earner families and lone parent families (Kittenroed and
Lappegaard 2012; OECD 2011b: 38). Increased diversity i n families with in countries is
accompanied by increased d iversity in di erent famil ies’ labour market participation
and in income across countries. For example, lone parents in the UK not only have
lower labour market participation and lower incomes than other British women in
nuclear families but also compared to lone parents in Germany, Denmark and the
Netherlands (Bingley et al. 1994; Drobnic 2000; Jenkins and Symons 2001). In all
countries, families with dual earners do not face social exposure and unemployment
to the same extent as lone parent households. A ordable childcare options have
facilitated employment for both lone parents and dual earner families (Eydal and
Rostgaard 2011; Forsberg 2009; Ridge and Mill ar 2011).
In theory social security steps in when markets (and families) fail, but how is
it in practice? Does social security provide the same protection for all, irrespective
of family type and previous income when unemployment strikes? Both the OECD
(2011a) and a series of other studies of unemployment compensation have focused
on unemployment bene t or social assistance. In comparative welfare state studies,
this has been done from a socia l rights perspective (Carroll 1999; Sjöberg 200 0, 2010;
Scruggs 2006). Ola Sjöberg (2010) has shown how generous unemployment bene ts
reduce job insecurity a nd thereby increase the subjective well-being of indiv iduals. In
another study, Sjöberg (2000) measured e ects of the duration of unemployment on
net replacement rates for an average worker. Lyle Scruggs (2006) has studied welfare
state retrenchment, looki ng at developments in unemployment bene t a nd at income
replacement for average production workers. e OECD (2011b: 38–39) has measured
the generosity of unemployment compensation for average family incomes, taking
into account some family related bene ts but leaving out others, most importantly
childcare.
Why is social protection for families important? e support that social security
systems give di erent family constellations impacts on both the future of families,
children and society at large (Jäntti and Bradbury 1999: 397; OECD 2011b: 216).
e relationship between social security and the position of an exposed family is of
particular interest when it comes to lone parents (OECD 2011b). Sheila Kamerman
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