Ratio of replacement

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Ratio of replacement - the ratio of the potential amount of transfer payments received to the pay in the last (last) job. Calculating it in averaged form and on the scale of the whole society is one of the ways of measuring the size of social benefits, the main components of the so- welfare state. Examples

If we assume that the unemployment benefit is the only component of income that a non-working person earns, then the ratio of his / her height to the amount of the last pay of the person being considered will be an example of such a substitute ratio. Since the Second World War, the average weekly payout for unemployment insurance in the US for all non-farm workers has increased from 39% in 1947 to 48% in 1991. During this period, the main changes in the accident insurance system Unemployment has increased the scope of its coverage (especially for small businesses and workers employed by state and local authorities) and extends the entitlement period. Similarly, the average amount of potential retirement benefits to average earnings (salaries) earned by the person receiving them immediately prior to retirement can be likewise analyzed. In 1983, in the USA, this ratio was 48%, while in 1965 it was just 31%. Bibliography

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