The risk premium for equity: implications for resource allocation, welfare and policy

Analysis of the equity premium puzzle has focused on private sector capital markets. The object of this paper is to consider the welfare and policy implications of each of the broad classes of explanations of the equity premium puzzle. As would be expected, the greater the deviation from the first-best outcome implied by a given explanation of the equity premium puzzle, the more interventionist are the implied policy conclusions. Nevertheless, even explanations of the equity premium puzzle consistent with a general consumption-based asset pricing model have important welfare and policy implications.

Why many eligible individuals choose not to go on welfare

This article investigates why many eligible for welfare do not participate. We show that on-the-job wage-rising potential is the key factor motivating nonparticipation. Although individuals with very low earnings and little wage-rising potential are typically welfare recipients, those with good wage-rising potential may choose to work, participate in old age, or never participate. Nonparticipation remains the best choice for eligible individuals with large wage-rising potential even if universal old-age social security is available. We will also apply this model to a comprehensive welfare system in Hong Kong.

Health investment, saving, and public policy

This paper develops an overlapping-generations model in which agents invest in health to prolong life in both working and retirement periods. It explores how unfunded social security with or without health subsidies affects life expectancy, economic growth, and welfare. In particular, by extending life at a possible cost of capital accumulation, health subsidies and a pay-as-you-go pension can improve welfare, especially in the short run.

'Faith-based' organisations and contemporary welfare

This paper explores issues arising from the welfare reform process in the United States and Australia. The involvement of faith-based organisations in both countries has evolved in different historical, social, political and cultural contexts. The paper will explore three main themes. First, it examines the relevance of the term 'faith-based' to describe the nature of the relationship between charities and churches in the mixed economy of welfare in the Australian context. Second, it provides a critical analysis of the reform processes, suggesting implications for the future of church-based organisations. Third, it maps directions for cross-comparative research of church-based social services provision in both countries.

Room to move? Professional discretion at the frontline of welfare-to-work

Outcomes of social policies have always been mediated by the discretionary agency of front-line staff, processes which nevertheless have received insufficient attention in policy evaluation and in the social policy literature more broadly. This article takes the case example or the policy reforms associated with the Australian government's welfare-to-work agenda. Drawing on two discreet research projects undertaken at different points in the policy trajectory, the practices of social workers in Centrelink - the Commonwealth government's primary service delivery agency involved in welfare-to-work - is examined. Centrelink social workers have been and remain one of the core groups of specialist staff since the Department's inception in the late 1940s, working to improve the well being Of people in receipt of income security. Their experiences of the recent past and their expectations of the future of their professional practice as welfare reform becomes more entrenched are canvassed. In summary, the discretionary capacity of the Centrelink social workers to moderate or shape the impact of policy on income security recipients is steadily eroding as this group of professionals is increasingly captured by the emerging practices of workfare.

Administering Welfare Reform: International Transformations in Welfare Governance

While reforms of welfare policies have been widely analyzed, the reform of welfare administration has received far less attention. Using empirical case studies, this book provides significant new insights into the way welfare administration is being internationally transformed. Particular attention is given to the effect on welfare clients, staff, and agencies. The book presents a critical analysis of governance practices in welfare administration, examining shifts in the participants, practices, and processes. Administering Welfare Reform provides a much-needed international and comparative perspective of changing welfare governance.