Random intercept multilevel models, with individuals nested within countries, were used to account for dependence of observations at the country level. The assumptions of multilevel models include normality of variances, homogeneity of variance and independence of observations at all levels.
The small sample of countries available is problematic, however, as standard random intercepts models including fewer than 20—30 level-2 units are likely to yield biased estimates of random-effects parameters. This minimizes bias in estimates of variance components even with as few as 10 level-2 units. Models adjusted for CASP at t 0 to correct for regression towards the mean. To estimate the extent to which differences in wellbeing change between countries was explained by country-level variables, we fitted a minimally adjusted model for change in CASP adjusting for CASP at t 0 only.
This provided an estimate of the percentage variance explained by country differences. The variance components obtained from this model were used as a baseline for comparison with subsequent models to estimate the percentage of country-level variance explained by groups of country-level variables. Fully adjusted models were then fitted with the addition of country-level variables. Model 1 added welfare regime, which was fitted as a categorical variable. A further six models Models 2—7 added groups of variables representing social-protection effort, emphasis and expenditure.
Models 2 and 3 fitted total welfare effort, and welfare effort devoted to in-kind and cash benefits, respectively. Model 4 fitted emphasis on in-kind benefits as a percentage of total public social-protection spending.
Model 5 fitted total per-capita public expenditure on social-protection benefits, whereas Model 6 disaggregated expenditures into in-kind and cash benefits. In Model 7, expenditures on cash and in-kind benefits were further classified according to whether these were age-related or health benefits. The percentage of variance due to country effects explained by the addition of each set of country-level variables was calculated. Residual plots for level-2 units were generated to show country deviations from the overall mean based on the minimally adjusted model and then the conditional model after adjustment for welfare typology.
Supplementary Table 4 , available as Supplementary data at IJE online, summarizes country-level welfare measures of effort, emphasis and expenditure in and gives mean values by welfare regime.
Life Course Regimes in Europe – Katja Möhring
Exits from paid work for reasons related to unemployment or disability, and outside typical age windows for retirement, were associated with negative changes in wellbeing. Both route and timing of work exit were associated with wellbeing change following exit from paid work. The negative CASP change score coefficients indicate that individuals exiting from work via receipt of social assistance —1. Associations of welfare-state regime and country-level measures of welfare effort, emphasis and expenditure with change in CASP scores following work exit and proportion of between-country differences explained.
Independent effects of country-level welfare-state variables after full adjustment for individual-level variables: route of exit from work, age at exit from work, country-specific quartile of household net worth, logarithm of household income, frailty index, participation in social activities, partnership status, born abroad, year of exit event and CASP at t 0. Deviations from the overall mean were attenuated in Model 1 to the extent that, after adjustment for welfare regime, only residence in Slovenia continued to be associated with higher CASP change scores compared with the overall mean.
Random intercepts residual plots for level-2 units without adjustment for country-level variables top, minimally adjusted and after adjustment for welfare-state regime bottom, Model 1 showing deviations from the overall mean. Each additional EUR in total per-capita social-protection expenditure was associated with a 0. When expenditure was disaggregated into in-kind and cash benefits, we found effect sizes of 0. Finally, CASP change scores were 0.
No such association was found for expenditure on healthcare services —0. These adjusted changes in CASP can be greater than or comparable in magnitude to other adverse events such as divorce or separation or diagnosis of a serious physical illness. Expenditure on in-kind benefits, in particular non-healthcare services, was associated with more positive CASP change scores.
Welfare regime explained a higher proportion of between-country differences than any measure of social-protection effort, emphasis or expenditure. Consequently, individuals in Scandinavian Social Democratic welfare states may experience more positive change in wellbeing due to not only higher expenditure on in-kind benefits, but also other institutional factors. Whereas earlier welfare state typologies focused on the cash-transfer component of welfare spending as the primary differentiator of welfare regimes, welfare services delivered via in-kind benefits have recently received greater attention.
Expenditure measures may also be more representative of the actual effects of welfare policies than effort and emphasis measures, as they relate to the direct purchasing power of transfers and value of services rendered. Expenditure devoted to non-healthcare services had the greatest effect on wellbeing following work exit, and this type of expenditure varies substantially between countries.
By contrast, welfare effort devoted to in-kind health-related benefits is relatively similar across developed countries and is unlikely to represent a differentiating feature of welfare-state regimes. Rather, mechanisms of financing and delivery of health services are likely to constitute the primary drivers of national differences in health indicators.
The results imply that policymakers should prioritize universal provision of non-health services over cash transfers as a more cost-effective means of mitigating potential negative wellbeing consequences of exit. Adverse changes in wellbeing have the potential to negatively impact physiological health and mortality risk. This is the first study to address country-level determinants of wellbeing change following work exit and to use a disaggregated spending approach.
To date, few studies have considered the associations between welfare spending and wellbeing. Our results agree with those of Eichorn, 24 which indicate that welfare effort devoted to cash unemployment benefits is not associated with higher life satisfaction among unemployed individuals. Other studies used aggregated country-level wellbeing measures as their outcome and only considered welfare effort. Okulicz-Kozaryn et al. Another is its disaggregated spending approach and partitioning of variance components within a multilevel MCMC framework using comparable country-level indicators.
This approach presents new avenues for investigating the influence of welfare-state policies across a range of outcome measures. One assumption of multilevel models is that level-2 units are randomly drawn from a representative sample. The analytic sample excluded individuals residing in institutions e. The fact that the sample comprised individuals who were in employment at baseline and had a mean age of The sample was likely to have been healthier than the general population of retirees and consequently less likely to require care.
Sampled respondents would have had similar work histories irrespective of other characteristics such as gender. Finally, negative change in CASP scores attributable to work exit via disability and sickness benefits may be partially due to specific health conditions, which may have been progressive in nature.
This potential confounding may not have been fully adjusted for by the frailty measure employed. Our findings show that country-level welfare policies explain a large proportion of the variance in wellbeing change between countries and show associations with individual-level wellbeing change following work exit.
Expenditure on non-healthcare services had the strongest positive association with wellbeing change. We would like to thank Dr Elisabetta Trevisan of the Marco Fanno Department of Economics and Management at the University of Padua for her guidance on the calculation of purchasing-power parity conversion factors for the harmonization of financial variables.
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Advanced Search. Article Navigation. Close mobile search navigation Article Navigation. Volume Article Contents. Country-level welfare-state measures and change in wellbeing following work exit in early old age: evidence from 16 European countries Sol Richardson. Corresponding author.
Ebook The Individual And The Welfare State Life Histories In Europe
Oxford Academic. Google Scholar. Ewan Carr. Gopalakrishnan Netuveli. Amanda Sacker. Cite Citation. Permissions Icon Permissions. Abstract Background. Table 1. In recent years, they have shifted towards marketization and decentralization following examples of Liberal welfare states. Open in new tab. Figure 1.
Open in new tab Download slide. Disaggregation of social-protection expenditure into its primary components. Table 2. Table 3. Table 4. Figure 2. Changes of life satisfaction in the transition to retirement: a latent-class approach. Search ADS. Monnier Monner. Google Preview.
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