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Chart 1. In some countries, most non-employed adults receive a benefit
In about two-thirds of the countries shown, the majority of those in the working-age population who are neither employed nor students are dependent on an income-replacement benefit. Where the "residual" population - the population which is neither employed, nor studying, nor receiving a benefit - is large, this probably reflects full or partial dependence on the income of other family members, particularly among young adults and married women. This may sometimes act as a disincentive to taking up employment, similar to dependence on income-replacement benefits. For further analysis, see the publication's discussion of Chart 4.1. [Note: All the estimates shown are on a full-time equivalent basis. The data on employment and student status are derived from responses to labour force surveys, whereas the data on receipt of income-replacement benefits are based on administrative records. Because some people may be receiving benefits at the full rate but also have part-time employment, or may be working full-time but also be receiving income-replacement benefits, there is an unknown degree of double-counting when the "residual" population is estimated.]
Chart 2. Long adjustment lags for assistance benefits
It takes a long time for individuals and societies to adjust to changes in welfare benefits. In the countries shown in this chart, the number of benefit recipients grew for long periods after the introduction of benefits, often for 15 to 25 years. This suggests that populations in need of assistance have grown partly because benefits are available. Conversely, when "activation" policies were strengthened, the number of benefit recipients fell during periods of 10 years and more. Such policies emphasise the conditionality of the benefit entitlements on job search and availability for work. A number of OECD countries are giving increased attention to "non-activity-tested" benefits as potential impediments to employment and are considering how to apply "activation" principles more broadly throughout the benefit system. For further analysis, see the publication's discussion of Chart 4.6.
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