Abstract
Introduction: The aim of this study is to determine the extent to which social insurance can reduce income inequality among workers. This study explores the role of social insurance as a tool for minimizing income inequality among workers. Methodology: The study adopts a comparative approach to examining differences in social insurance systems in Norway, the Netherlands, Germany, Latvia, Romania, and Bulgaria. By comparing the selected countries, the research examines the correlation between the level of social insurance and the disparity in workers' incomes. Results: The analysis identifies key indicators such as social insurance expenditures as a percentage of GDP, population coverage, minimum wage levels, and the Gini index to evaluate the effectiveness of social insurance systems. The findings highlight significant differences in how social insurance is implemented and its impact on income distribution across these countries. In particular, the study provides insights into the mechanisms through which social insurance can mitigate economic inequality and offers a comprehensive understanding of the strengths and weaknesses of various social insurance models. Conclusions: This detailed examination allows for a nuanced comparison that can inform policy decisions and improvements in social insurance practices aimed at achieving greater economic equality and social justice. By analyzing different models and approaches within the selected countries, the study seeks to identify best practices and provide recommendations for policy improvements in social insurance systems.
References
Alaniz, E., Gindling, T. H., & Terrell, K. (2011). The impact of minimum wages on wages, work and poverty in Nicaragua. Labour Economics, 18(1), 45-59.
Ansari, Z., Tabash, M. I., Akhtar, A., Khan, S. H, & Al-Matari, E. M. (2019). Identifying and ranking the driving forces of social insurance by analytical hierarchy process: evidence from India. Heliyon, 5(10), 1-10.
Anwar, A., Hyden, S., Nor, N., & Younis, M. (2023). Government health expenditures and health outcome nexus: a study on OECD countries. Frontiers Public Health, 11. https://www.frontiersin.org/journals/public-health/articles/10.3389/fpubh.2023.1123759/full
Borella, M. & Fornero, E. (2009). Adequacy of pension systems in Europe: An analysis based on comprehensive replacement rates. ENEPRI Research Reports. http://aei.pitt.edu/10967/1/1837[1].pdf
Britchenko, I., Filyppova, S., Niekrasova, L., Chukurna, O., & Vazov, R. (2022). The system of evaluation efficiency of the strategy of sustainable development of the enterprise in the decentralisation conditions. Ikonomicheski Izsledvania, 31(1), 118-138.
Coheur, A., Jacquier, C., Schmitt-Diabaté, V., & Schremmer, J. (2008). Linkages between statutory social security schemes and community-based social protection mechanisms: A promising new approach. Social Security Essentials, 9, article number 18.
Dundure, I. (2013). The adequacy of the Latvian pension system in the face of Europeanization. European Scientific Journal, 2, 68-76.
Eurostat. (2023a). Annual net earnings of a full-time single worker without children earning an average wage. https://ec.europa.eu/eurostat/databrowser/explore/all/popul?lang=en&subtheme=labour.earn.earn_net&display=list&sort=category&extractionId=earn_nt_netft
Eurostat. (2023b). Monthly minimum wages https://ec.europa.eu/eurostat/databrowser/view/earn_mw_cur/default/table?lang=en
Furceri, D., & Zdzienicka, A. (2010). The effects of social spending on economic activity: Empirical evidence from a Panel of OECD countries. Fiscal Studies, 33(1), 1-30. https://doi.org/10.1111/j.1475-5890.2012.00155.x
Gnatenko, K.V., Yaroshenko, O.M., Inshyn, M.I., Vapnyarchuk, N.M., & Sereda, O.H. (2020). Targeted and effective use of state and non-state social funds. International Journal of Criminology and Sociology, 9, 2861-2869. https://doi.org/10.6000/1929-4409.2020.09.350
International Labour Organization. (2014). Enhancing social security right for everyone: Social insurance. https://www.ilo.org/publications/social-insurance-enhancing-social-security-right-everyone-policy-brief
Ivashchenko, A., Polishchuk, Y., & Britchenko, I. (2018). Implementation of ICO European best practices by SMEs. Economic Annals-XXI, 169(1-2), 67-71. doi:10.21003/ea.V169-13
Jadoon, A. K., Tanveer, A., Javed, M., & Sarwar, A. (2021). Minimum wages and poverty: A cross-country analysis. Asian Economic and Financial Review, 11(8), 632-643. https://doi.org/10.18488/journal.aefr.2021.118.632.643
Jumaniyazov, I.T., & Xaydarov, A. (2023). The importance of social insurance in social protection. Science and Education, 4(1), 1033-1043. https://openscience.uz/index.php/sciedu/article/view/4941
Kniazieva, T.V., Shevchenko, A.V., Shevchenko, A.V., Yaroshenko, O.M., Inshyn, M.I., & Yakovlyev, O.A. (2021). Current trends in the formation and development of insurance marketing in Ukraine. Risk Management and Insurance Review, 24, 279–292.
Koliada, Т.A. (2017). Influence of Budgetary Expenses on the Socio-Economic Development Rates of Ukraine. Bulletin of Mukachevo State University, 9, 997-1004.
Lee, C., & Chang, C. (2006). Social security expenditures and economic growth: A heterogeneous panel application. Journal of Economic Studies, 33, 386-404.
Marych, M.H. (2022). Social insurance. Yuriy Fedkovych Chernivtsi National University.
Melnychuk, D., Voinalovych, I., & Zhyvko, Z. (2022). Social Insurance: a Security Factor in the Context of Modern Challenges. Economics, Finance and Management Review, 3, 62-70.
Nechuporenko, S.D. (2017). Essence and importance of social insurance in the system of social protection of the population. Ahrosvit, 6, 55-60.
Nemchenko, A.S., Titko, I.A., Podgaina, M.V., Korzh, Y.V., & Zaytzeva, Y.L. (2018). Legal and organizational economic aspects of the functioning of the main models of health-care systems. Asian Journal of Pharmaceutics, 12, S937-S945. https://doi.org/10.22377/ajp.v12i03.2631
OECD. (2019). Can Social Protection Be an Engine for Inclusive Growth? https://www.oecd-ilibrary.org/measuring-the-impact-of-social-protection-on-inclusive-growth_a43dc9c3-en.pdf?itemId=%2Fcontent%2Fcomponent%2Fa43dc9c3-en&mimeType=pdf
Reeves, A., Basu, S., McKee, M., Meissner, C., Stuckler, D. (2013). Does investment in the health sector promote or inhibit economic growth? Global Health, 9(43), 1–12. https://doi.org/10.1186/1744-8603-9-43
Romanovska, Yu.А., & Solonenko, L.V. (2017). State social insurance as a form of social protection of Ukraine's population. Scientific Bulletin of Uzhhorod National University, 16(2), 84-87. http://www.visnyk-econom.uzhnu.uz.ua/archive/16_2_2017ua/20.pdf
Schanz, K. (2022). The role of insurance in mitigating social inequality. The Geneva Association Research Brief. https://www.genevaassociation.org/sites/default/files/research-topics-document-type/pdf_public/social_inequality_brief_web_final.pdf
Sigma. (2022). Reshaping the social contract: the role of insurance in reducing income inequality. Swiss Re Institute, 3. https://www.swissre.com/dam/jcr:978cea72-60d6-410b-acf0-071a3393d69c/2022-05-11-sigma03-role-of-insurance-in-reducing-income-inequality-en.pdf
Society at a Glance. (2024). OECD Social Indicators. https://www.oecd-ilibrary.org/deliver/918d8db3-en.pdf?itemId=%2Fcontent%2Fpublication%2F918d8db3-en&mimeType=pdf
Sotomayor, O. (2021). Can the minimum wage reduce poverty and inequality in the developing world? Evidence from Brazil. World Development, 138, 105-128. https://doi.org/10.1016/j.worlddev.2020.105182
World Bank Group. (2023). Coverage of social insurance program. https://databank.worldbank.org/source/world-development-indicators/Series/per_si_allsi.cov_pop_tot
World Bank Group. (2024). Domestic general government health expenditure per capita. https://data.worldbank.org/indicator/SH.XPD.GHED.PP.CD
World Bank. (2023). Gini index. https://data.worldbank.org/indicator/SI.POV.GINI?skipRedirection=true&view=map
Xu, Z. (2022). Optimal insurance with background risk and belief heterogeneity. Open Journal of Business and Management, 10(1), 134-143. https://doi.org/10.4236/ojbm.2022.101008
Yaroshenko, O.M., & Tomashevski, K.L. (2021) The impact of COVID-19 on labour and social security relations: Rule-making experience of Belarus and Ukraine. Journal of the National Academy of Legal Sciences of Ukraine, 28(2), 211-221. https://doi.org/10.37635/jnalsu.28(2).2021.211-221
Yaroshenko, O.M., Lutsenko, О.YE., & Vapnyarchuk, N.M. (2021). Salary optimisation in Ukraine in the context of the economy Europeanisation. Journal of the National Academy of Legal Sciences of Ukraine, 28(3), 224-237. https://doi.org/10.37635/jnalsu.28(3).2021.224-237
Yaroshenko, O.M., Moskalenko, O.V., Velychko, L.Y., & Kovrygin, V.S. (2019). Property civil law liability and material liability of employees for damage caused to an employer: On the basis of civil law of Ukraine. Asia Life Sciences, 2, 735-748.
Yaroshenko, O.M., Vapnyarchuk, N.M., Lozovoi, S.V., Yakovleva, G.O., & Yakovlyev, O.A. (2018). General-compulsory medical insurance: World experience Journal of Advanced Research in Law and Economics, 9(5), 1829-1838. https://doi.org/10.14505//jarle.v9.5(35).38
Yokobori, Y., Kiyohara, H., Mulati, N., Lwin, K., Bao, T., Aung, M. N., Yuasa, M., & Fujita, M. (2023). Roles of social protection to promote health service coverage among vulnerable people toward achieving universal health coverage: A literature review of international organizations. International Journal of Environmental Research and Public Health, 20(9), article number 5754. https://doi.org/10.3390%2Fijerph20095754
##plugins.facebook.comentarios##

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Copyright (c) 2025 Denys A. Puntus, Mykola P. Kucheryavenko, Oleg M. Yaroshenko, Yaroslav O. Kostohryz, Anzhelika O. Tkachuk