Social policy questions

What is hetreogenous treatment effects?

Refers to differences in the impact of treatment across indivduals or groups.

Shortly, when treatment does not affect observations the same way.

Examples of hetregenous effects in texts:

• Schäfer & Schwanda: Examines the negative relationship between income inequality and voter turnout —> this relationship differs across income groups —> stronger impact the lower the income group.

• Ansell et al. (2022) examines the effects of changes in house prices on support for local RRP - both among homeowners and renters. They find much weaker effects among renters (as expected) however this indicates the geotropic effects —> eventhough changes in house prices does not affect renter directly, they get affected by seeing the relatively decline of their community.

• Kreitzer et al., 2023: Derservingness perceptions varies across different american states e.g. gunowners.
  
  

What is compensation policy and how does it fit into green transition

• A compensation policy is a policy designed to mitigate the negative effects due to a social, economic or policy-driven change.

• Green transition is an issue of diffuse benefits and concentrated cost.

• Bolet et al. shows that compensation policies can help secure support governments in areas where the cost of green transition is concentrated.

• Bolet et al. calls it ’just transition strategies’ = combining climate policies with compensation policies aimed at mitigating the negative effects among affected workers and communities.

• Case: coal mine closure in Spain à affects both coal miners but also the whole community that is build around the coal industry.

• Method: dif’n’dif

• Show that JTS increase support for government substantially.

• To increase support for a green policy among a specifically burden group e.g. coal mine workers, it's a good idea to compensate the community (or the people heavenly affected by the policy.

 

What is policy feedback and what are real-life examples of this? 

Definition of policy feedback:

• Policy feedback refers the idea that existing policies shapes and influences

  • future political behaviour (policy preferences, voting behaviour etc.

  • Political decisions

  • Development of new policies

• Direct feedback is when individuals directly experience the consequences of a policy (and react to this)

• Indirect feedback is when policies create new policies or social conditions that influence future policies.

Examples:

• Mettler et al.:

  • The affordable care act in the US.

  • When the AFC was proposed by the Democrats it was unpopular among Republicans

  • After the adoption the act has several times threaten with abolishing it. This has been very unpopular across partisanship, especially among lower income americans.

  • Example of loss aversion à the act is now a policy that people expect.

• Generally, refer to loss aversion à it’s hard to take away or reduce a benefit that covers many citizens (bridge to path-dependency – many policies sticks, leading to drift or layering)

What is policy feedback?

Path dependency refers to that past (political) decisions shape and constrain present and future (political) choices

Because…:

• Earlier policy decisions create structures and expectations

• Switching paths becomes costly

• Institutions themselves resis/inhibit change – bureaucratic resistance

Breakers of path dependencies

• Critical junctures of major crisis, events or structures.

Path dependency often leads to incremental policy change

• Layering: adding a new rule or policy on top of existing without removing it à thus changing outcome without changing the fundaments. Often in regard to restricting benefits.

• Drift: Rules stay the same, but the outcome changes due to external shifts (inflation)

• Conversion: Existing institutions are redirected to new purposes – labour union from payment to rights.

What are the main welfare state models and how do they compare

There are 3 of welfare state models

The residual welfare model:

• The state only proves some minimal welfare if everything else fails.

• Example: The US

The Selective welfare model

• Acces to certain welfare programme is contingent on the labour market – your job gives you access to health insurance.

• However, some welfare programmes are provided by the state e.g. protect against the risk of being unemployed, because when you are unemployed you are fucked.

The universal welfare model

• All citizens are entitled to welfare. Not necessarily mediated by other actors. E.g. “u get free health care, and u get free health care”

What is the difference between social insurance and welfare programs (welfare schemes)

Social insurance

·        social insurance programs are based on pay-as-you-go systems e.g. state pensions

·        financed through contributions

·        accessible to those who contribute

·        Usually mandatory payments

·        Participants pay into the system and can access it when in need (goes on pension)

·        Seen as earned right, not charity

Welfare Programs

·        Financed out of tax revenue

·        No individual payments made

·        Beneficiaries can access it when in need/qualifies

·        All can qualify, however, often need-based.

·        E.g. kontanthjælp, social assistance, housing support.

What is the difference between social investement policies and social consumption policies

Socia consumption policies

• Policies that provide services that meet basic needs

• Is levitating immediate concerns among citizens

• E.g. health care, unemployment benefits, (that is not re-education), homeless shelter, social assistance.

•  

Social investment policies

• Social investment policies aims at strengthening/create/mobilise/preserve citizens human skills and capabilities, thus increasing the employability of citizens

• E.g. childcare provision, education and active labour market policies (retraining)

What are the different aspects of energy cost and why is it important?

Common ways to measure energy cost

·        “Energy poor”: Expenditure to disposable income ratio --> 10% of disposable income on energy

·        The ability to heat your house - a dummy

Why is it important

·        Housing (un)affordability

·        Energy cost is the most volatile element in housing cost.

·        Affects both homeowners and renters.

·        Voeten (2024): Rising energy due to climate policy increase support for RRP – especially among energy poor and those with seperate utility bills. Does not change opinion on other subjects (immigration etc)

• Local vacancy rate measure à indicates a tight housing market

Demand side:

• Housing burden: Use more than 30% of your disposable income on housing - income to expenditure measures.

• Residual income measure: How much disposable income do you have left over after housing cost, and is it enough to buy a basket of goods

• = Both DEMAND and SUPPLY side measures.

Supply side

• Local vacancy rate measure à indicates a tight housing market

• Also more local level measures such as rising rents in ones local areas (Abou-Chadi et al.etc.

What is the first and second order preferences?

These are two termes reference to different measures of policital preferences

First order preferences

• More concrete: Do you support this policy or do you support that party.

• e.g. issue support, party support, vote choice, support politiican

• “I see economic inequality, I now prefer more redistribution”.

Second order preferences

• refers to support for more diffuse

• e.g. ideological commitments support for political system, trust in institutions or government etc.

• “Am I a libertarian or am I more conservative.”