Reports Summarize Social Policy Study Results from Jonkoping University (A Cofinancing Model for Disability Insurance and Local Government Employers): Social Policy

2022 APR 19 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- New research on Social Policy is the subject of a report. According to news reporting originating from Jonkoping, Sweden, by NewsRx correspondents, research stated, “Employer cofinancing in disability insurance (DI) systems aims to reduce the inflow to DI by making employers internalise their DI costs. We evaluate a cofinancing system for the local government sector in Sweden inspired by the literature on yardstick competition.”

Funders for this research include Forte’s grant at IFAU, Uppsala University, Forte’s grant.

Our news editors obtained a quote from the research from Jonkoping University, “In the system, local governments are responsible for the DI of their employees, while being compensated by the central government for their expected DI payments. The arrangement essentially eliminates the large fiscal externalities associated with DI. Also, the arrangement can be implemented within current administrative setups, and the design credibly ensures that no extra costs are imposed on the local government sector in the aggregate.”

According to the news editors, the research concluded: “Drawing on Swedish employer-employee matched data, we show that the net transfers implied by the scheme are quite large as a share of DI payments, but sufficiently small as a share of tax payments to not be onerous, and that they only marginally increase regional inequality.”

This research has been peer-reviewed.

For more information on this research see: A Cofinancing Model for Disability Insurance and Local Government Employers. Social Policy and Administration, 2022. Social Policy and Administration can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Social Policy and Administration - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9515)

The news editors report that additional information may be obtained by contacting Johannes Hagen, Jonkoping University, Jonkoping International Business School, Jonkoping, Sweden.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/spol.12810. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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