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Social insurance design and globalisation

. Globalisation = increased international exchange- goods and services- capital and labour mobility. . Globalisation:?welfare gains;unevenly distributedgains > losses Compensate by generous" social insurance. Figure 1. Factor price (wage) equalisation as a result of trade.

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Social insurance design and globalisation

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    1. Social insurance design and globalisation Agneta Kruse Economics, Lund University and Swedish Social Insurance Agency

    2. Globalisation = • increased international exchange - goods and services - capital and labour mobility

    3. Globalisation: ? welfare gains; unevenly distributed gains > losses Compensate by “generous” social insurance

    4. Figure 1. Factor price (wage) equalisation as a result of trade

    5. GDP per capita Unempl. 2005 Austria 115 5.9 Czech Republic 67 8.0 France 107 9.9 Germany 103 9.1 Hungary 58 7.3 Poland 46 17.7 Sweden 110 5.8 UK 113 4.8

    7. Figure 3. Labour migration from a low wage country (New) to a high wage country (Old) with an unemployment insurance with the replacement rate b/w.

    8. Social insurance: social ? public, obligatory, uniform insurance ? risk of income loss Uniformity: an obstacle to mobility, portability?

    9. Higher degree of portability • with an acturarial design; - a tight connection between contributions and benefits

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