Shared leave, happier parent couples? Parental leave and relationship satisfaction in Germany

This study investigates how parental leave policies and uptake may impact heterosexual couples’ relationship satisfaction. It focuses on Germany as an example of a country with a history of familialist policies and long maternal leaves that has recently undergone a significant policy shift. We extend the literature by examining the effects of maternal and paternal leave duration on both partners’ relationship satisfaction while distinguishing between the length of solo, joint and overall leave. The study applies two different methods on data from the Panel Analysis of Intimate Relationships and Family Dynamics (pairfam). First, the study applies fixed-effects regression models ( n = 1046 couples) to investigate the impact of parental leave duration on the change in mothers’ and fathers’ satisfaction over the child’s early years. Second, drawing on exogenous variation as a result of the parental leave reform of 2007, which shortened paid leave for mothers and incentivised fathers’ leave take-up, difference-in-difference analyses ( n = 1403 couples) analyse reform effects on relationship satisfaction of parents with 3-year-old children. The fixed-effects models indicated a consistent negative impact of maternal – especially solo – leave duration on both mothers’ and fathers’ relationship satisfaction. No significant effects of paternal leave length were found. The difference-in-difference approach revealed a positive reform effect on mothers’ relationship satisfaction. In combination, these results suggest that the reduction in maternal leave as part of the reform has had a greater impact on couples’ relationship quality than the relatively short duration of leave taken by most fathers after the introduction of the individual leave entitlement.

Labour market protection across space and time: A revised typology and a taxonomy of countries’ trajectories of change

We measure and interpret the evolution of labour market protection across 21 high-income countries over three decades, employing as conceptual foundations the ‘regime varieties’ and ‘trajectories of change’ developed by Esping-Andersen, Estevez-Abe, Hall and Soskice, and Thelen. We measure labour market protection considering four institutional dimensions – employment protection, unemployment protection, income maintenance and activation – and the evolution of the workforce composition. This measurement accounts for the joint evolution of labour market institutions, their complementarities and their relation to outcomes, and mitigate the unrealistic Average Production Worker assumption. We handle the multi-dimensional nature of labour market protection with Principal Component Analysis and capture the characteristics of countries’ trajectories of change with a composite score. We contribute to the literature in three ways. (1) We portray a revised typology that accounts for processes of change between 1990 and 2015, and that clusters regime varieties on the basis of coordination and solidarity levels, that is, Central/Northern European, Southern European, liberal. (2) We illustrate that, despite a persistent gap, a large majority of Coordinated Market Economies experiencing a decline in the level of labour market protection became more similar to Liberal Market Economies. (3) We develop a fivefold taxonomy of countries’ trajectories of change (liberalization, dualization, flexibility, de-dualization and higher protection), showing that these trajectories are not always path-dependent and consistent with regime varieties previously developed in the literature.

The four global worlds of welfare capitalism: Institutional, neoliberal, populist and residual welfare state regimes

What welfare state regimes are observed when the analysis is extended globally, empirically and theoretically? We introduce a novel perspective into the ‘welfare state regimes analyzes’ – a perspective that brings developed and developing countries together and, as such, broadens the geographical, empirical and theoretical scope of the ‘welfare modelling business’. The expanding welfare regimes literature has suffered from several drawbacks: (i) it is radically slanted towards organisation for economic co-operation and development (OECD) countries, (ii) the literature on non-OECD countries does not use genuine welfare policy variables and (iii) social assistance and healthcare programmes are not utilized as components of welfare state effort and generosity. To overcome these limitations, we employ advanced data reduction methods, exploit an original dataset that we assembled from several international and domestic sources covering 52 emerging markets and OECD countries and present a welfare state regime structure as of the mid-2010s. Our analysis is based on genuine welfare policy variables that are theorized to capture welfare generosity and welfare efforts across five major policy domains: old-age pensions, sickness cash benefits, unemployment insurance, social assistance and healthcare. The sample of OECD countries and emerging market economies form four distinct welfare state regime clusters: institutional, neoliberal, populist and residual. We unveil the composition and performance of welfare state components in each welfare state regime family and develop politics-based working hypotheses about the formation of these regimes. Institutional welfare state regimes perform high in social security, healthcare and social assistance, while populist regimes perform moderately in social assistance and healthcare and moderate-to-high in social security. The neoliberal regime performs moderately in social assistance and healthcare, and it performs low in social security, and the residual regime performs low in all components. We then hypothesize that the relative political strengths of formal and informal working classes are key factors that shaped these welfare state regime typologies.

Family policies’ long-term effects on poverty: a comparative analysis of single and partnered mothers

This study investigates whether generous family policies at the transition to parenthood reduce single and partnered mothers’ economic disadvantages later in the life course. Previous research usually focused on the immediate effects of family policies and disregards potential longer-term effects. In this study, we suggest taking a life-course perspective to study the relationships between family policy and mothers’ poverty risks. We empirically investigate how investment in child benefits, childcare services and parental leave measures at the transition to parenthood are associated with poverty outcomes at later life stages and whether these associations hold over time. We draw on pooled EU-SILC data, and an original policy dataset based on OECD expenditure data for child benefits, childcare and parental leave from 1994 to 2015. We find that mothers’ observed increase in poverty over time is slower in countries with high levels of spending for childcare at the transition to parenthood than in lower spending countries. The gap between partnered and single mothers was also diminishing in contexts of high childcare expenditure. For the other two policies, we did not find these links. These results do lend support to the claim that childcare is a prime example of a social investment policy with returns later in the life course and represents a life-course policy that seems to be able to disrupt economic path dependencies. The results for the other two policies suggest, however, a limited potential of family policy spending at transition to parenthood to reduce the poverty gap between partnered and single mothers over the course of life.

Redistributive preferences: Why actual income is ultimately more important than perceived income

An emerging consensus claims that ‘subjective’ (mis)perceptions of income inequality better explain redistributive preferences than actual ‘objective’ conditions. In this article, we critically re-assess this view. We compare perceived and actual income positions as predictors for preferences for redistribution. We argue that perceived income is partly endogenous to actual income and its effect on preferences conditional on ideology. Using an original survey experiment from Switzerland, we show that the predictive power of perceived income is lower compared to actual income. Perceived income is only associated with redistribution preferences among centre-right respondents, but not among left-wing respondents. Furthermore, providing respondents with corrective information about their true position in the income hierarchy has no effect on redistribution preferences. These findings go against the new consensus about the superior explanatory power of subjective perceptions of income inequality. We argue instead that absolute objective conditions should be at the centre of explaining redistributive preferences.

COVID-19 and policies for care homes in the first wave of the pandemic in European welfare states: Too little, too late?

This article examines COVID-19 and residential care for older people during the first wave of the pandemic in 2020, comparing a range of countries – Denmark, England, Germany, Italy and Spain – to identify the policy approaches taken to the virus in care homes and set these in institutional and policy context. Pandemic policies towards care homes are compared in terms of lockdown, testing and the supply of personal protective equipment. The comparative analysis shows a clear cross-national clustering: Denmark and Germany group together by virtue of the proactive approach adopted, whereas England, Italy and Spain had major weaknesses resulting in delayed and generally inadequate responses. The article goes on to show that these outcomes and country clustering are embedded in particular long-term care (LTC) policy systems. The factors that we highlight as especially important in differentiating the countries are the resourcing of the sector, the regulation of LTC and care homes, and the degree of vertical (and to a lesser extent horizontal) coordination in the sector and between it and the health sector.

Wealth of children from single-parent families: Low levels and high inequality in Germany

Families’ economic wealth is a resource that can provide children with crucial advantages early in their lives. Prior research identified substantial variation of wealth levels between different family types with children from single-parent families being most disadvantaged. The causes of this disadvantage, how much the disadvantage varies between children and how the non-resident parents’ wealth may potentially reduce the disadvantage remain unclear. To address these research gaps, we use data from the German Socio-Economic Panel (2002–17) to examine the level of and inequality in wealth for children from single-parent families using recentred influence function regression and decomposition analysis. We replicate earlier findings of a large wealth disadvantage for children in single-parent families. We find that the wealth disadvantage can be mainly explained with compositional differences in household income and employment characteristics. Beyond level differences, inequality between children from single-parent families is higher than for other family types and this inequality can only partly be explained by observed demographic and socio-economic characteristics. When considering the wealth of non-resident parents, the wealth disadvantage of children in single-parent families is reduced but remains substantial. JEL-codes: D31, D1, J1

Avoiding material hardship: The buffer function of wealth

We assess how a variety of disruptive life-course events impact the economic wellbeing of US households and trace the importance of household wealth in helping families who experience these events avoid entering a spell of material hardship. Using longitudinal data from two panels of the Survey of Income and Program Participation (SIPP), we draw on direct measures of material hardship, disruptive events and household assets. Our analyses reveal that the relationship between disruptive events and the likelihood of experiencing a new spell of material hardship strongly varies across the wealth distribution, suggesting that high household wealth provides an effective private safety net. By distinguishing different types of disruptive events, we demonstrate that divorce, disability and income loss entail a risk of material hardship but also that this risk is effectively buffered by substantial wealth. Different types of hardship – namely, financial, food and medical hardship – respond in similar ways. Like public insurance schemes, wealth insurance helps buffer the effects of disruptive events on material hardship, but unlike public insurance schemes, reliance on private wealth further stratifies the economic wellbeing of households. Policy options for addressing this highly stratified private insurance scheme include disposing of the need for it by funding more robust public insurance, for instance through wealth taxation.

Post-crisis developments in young adults’ housing wealth

How has housing wealth inequality changed for young-adult households in the post-financial crisis period, and what is driving such change? We chart a path for subsequent studies by analysing the previously unexamined post-crisis housing wealth profile of young adults via different angles and using multiple inequality measures. Using household micro-data for 11 European countries ( Household Finance and Consumption Survey, 2010–2017) and the United States ( Survey of Consumer Finances, 2010–2016), we find that the accumulation of housing assets for 22–44 year olds is unevenly concentrated among high-income homeowners, over and above what would be expected given the well-known decline in homeownership. We describe and assess several potential drivers for these wealth profile changes, finding that the current explanations offered in the literature do not adequately account for the unequal wealth profile of young people. We conclude that a mix of dynamics, including housing market volatility, housing market configurations leading to uneven capital gains and losses, and the increased social selectivity of homeownership intersect to shape the ways that young adults navigate the housing market in post-crisis times.

Poverty in the EU using augmented measures of financial resources: The role of assets and debt

Despite clear limitations, poverty research in the rich world overwhelmingly relies on income-based measures. Households may have significant savings and assets that they can draw on to boost their living standards, but may also have debts that depress the living standard they can actually achieve with their disposable income. Using data from the Eurosystem Household Finance and Consumption Survey (HFCS), this article offers a picture of poverty in 17 EU countries that takes into account assets and debt, using various approaches. While earlier studies have found that poverty rates tend to be lower when wealth is accounted for, this study highlights the situation of those who become or remain poor even when savings and assets are included. It focuses both on within-country patterns of joint income–wealth poverty and on cross-country differences. It is shown that the elderly are generally less prone to being poor once assets are accounted for. However, for renter households with a young, female, low educated, unemployed or inactive and single head, the risk of being poor when assets and debt are accounted for remains high and in some cases even increases. That is generally the case because they have few assets, rather than because of high debts. The substantial variation in poverty rates observed across countries can to some extent be accounted for by socio-demographic factors, but a lot of variation still remains unaccounted for.