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Prerequisites Versus Diffusion: Testing Alternative Explanations of Social Security Adoption*
Published online by Cambridge University Press: 01 August 2014
Abstract
Cross-national research has, with a few exceptions, dealt exclusively with hypotheses that focus on causal relations within nations. It is increasingly clear both on substantive and methodological grounds, however, that diffusion effects among nations must also be considered. The present research combines these alternative perspectives in an analysis of the timing of the first adoption of social security in nations. It is found that not only prerequisites explanations—which focus on causes within each nation—but also spatial and hierarchical diffusion effects must be considered in explaining patterns of social security adoption. The most important overall pattern, which appears to result from diffusion, is the tendency for later adopters to adopt at lower levels of modernization. This finding is interpreted as being due in part to a general tendency toward a larger role of the state in later developing countries—involving an important difference in the sequence in which different aspects of modernization occur—and in part to special characteristics of social security as a public policy.
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Footnotes
This is a revised version of a paper presented at the 1973 Annual Meeting of the Midwest Political Science Association, Chicago. The research was supported by grants from the Cross-Cultural Fellowship Program and the Honors Division of Indiana University and by a Ford Foundation Political Science Faculty Research Fellowship. John V. Gillespie played a major role in stimulating our concern with the place of diffusion in cross-national research, and Ruth B. Collier provided helpful comments on earlier drafts of the article. We are obviously solely responsible for the final form which the article has taken.
References
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3 This expression is used loosely here to refer to what Marion Levy has labeled functional and structural prerequisites. In using the expression prerequisites, we are following his distinction between the prerequisites for the appearance of a given phenomenon and the requisites for its continued existence. See Levy, Marion J. Jr., The Structure of Society (Princeton: Princeton University Press, 1952), pp. 62–63 and 71–72 Google Scholar.
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7 Berry has made this point with particular reference to spatial diffusion. He has argued that whereas “in time series a natural distinction exists between past and future, no such property characterizes spatial series. Dependence will extend in a variety of directions, and often on vectors at angles to the Cartesian grid, leading to elaborate cross-product locational terms…. [M]ost of the functions introduced by statisticians into the field of spatial processes have been introduced simply because the mathematics exists, as extensions of time-series analysis, without thought for their usefulness or interpretability. And even more significant, all of the existing models rely on an assumption of stationarity, i.e., that the relation between values of the processes is the same for every pair of points whose relative positions are the same. This is patently invalid.” See Berry, Brian J. L., “Problems of Data Organization and Analytical Methods in Geography,” Journal of the American Statistical Association, 36 (09, 1971), 521 Google Scholar.
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11 This is a paraphrase of the definition found in U.S. Department of Health, Education and Welfare, Social Security Administration, Social Security Programs Throughout the World, 1971 (Washington, D.C.: Government Printing Office, 1971), p. ix Google Scholar.
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17 These and other dates are from U.S. Department of Health, Education, and Welfare, Social Security Programs.
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19 U.S. Department of Health, Education, and Welfare (Washington, D.C.: U.S. Government Printing Office, 1971). The limitations of this source are discussed in the Appendix.
20 See Aaron, “Social Security”; Fredrick Pryor, Public Expenditures; Taira and Kilby, “Differences in Social Security Development:” and Cutright, “Political Structure, Economic Development and National Social Security Programs” and “Income Redistribution.”
21 The procedure followed here is that recommended by Przeworski and Teune for confirming the reliability of an indicator. See Adam Przeworski, and Teune, Henry, The Logic of Comparative Social Inquiry (New York: John Wiley and Sons, 1970), pp. 114–115 Google Scholar.
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23 See Richardson, J. Henry, Economic and Financial of Aspects of Social Security: An International Survey (Toronto: University of Toronto Press, 1960), pp. 139–155 Google Scholar for a discussion of the issues involved in family allowance programs.
24 See Cutright, “Income Redistribution;” Aaron, “Social Security”; Pryor, Public Expenditures; and Taira and Kilby, “Differences in Social Security Development.” It should be noted that whereas these correlations are treated, in the present research as a means of assessing the validity of an indicator these authors have used them to examine causal relations among different aspects of social security experience.
25 The negative sign of this correlation and the two others reported in the next paragraph results from the fact that timing of adoption is measured by the year of adoption, and hence involves a smaller number for the earlier adopters. The measure of spending is taken from The Cost of Social Security, published by the International Labor Organization (Geneva: 1967)Google Scholar.This correlation is based on data on 34 countries.
26 The data on coverage are taken from International Labor Office The Yearbook of Labor Statistics, 1961 (Geneva, 1961)Google Scholar. The correlation for work injury is based on 27 cases, and that for pensions on 30 cases.
27 Probably the most important aspect of social I security development—the quality of the benefits offered to those who are covered—is extremely difficult to measure. One might hypothesize that timing of adoption and quality of services are strongly associated, but that as one moves from earlier to later adopters, the lag between the first adoption of programs and the growth in the quality of programs would be greater and greater. Wolf's discussion of the quality of services in Latin America—a region in which the first adoption occurred nearly three decades after the first adoption in Germany—would appear to support this hypothesis. He suggests that dilution of the quality of service, long delays in insurance payments, wide-spread corruption and bribery are found even in the most advanced countries in Latin America. See Wolfe, Marshall, “Social Security and Development: The Latin American Experience,” in The Role of Social Security in Economic Development, ed. Kassalow, Everett M. (Washington, D.C.: U.S. Department of HEW, Social Security Administration, Research Report No. 27, 1968), pp. 155 and 165 Google Scholar.
28 Pryor, , Public Expenditures, pp. 134–135 Google Scholar.
29 For a useful discussion of the literature that has overstated the importance of the transition for rural to urban life, see Cornelius, Wayne A. Jr., “The Political Sociology of Cityward Migration in Latin America: Toward an Empirical Theory,” in Latin American Urban Research, I, Rabinovitz, Francine F. and Trueblood, Felicity M., eds. (Beverly Hills, Cal., Sage Publications, 1971) pp. 95–150 Google Scholar. In the present context it is important to note that opportunities for non-monetary provisions of certain types may be present in cities. See, for instance, Mangin's, William “Latin American Squatter Settlements: A Problem and a Solution,” Latin American Research Review, 2, No. 3 (Summer, 1967), 65–98 Google Scholar.
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53 The expression positioning behavior was suggested by Jack Walker in a personal communication.
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56 This coefficient is derived from the Economic Report of the President, 1972 (Washington, D.C.: U.S. Government Printing Office, 1973), pp. 247–253 Google Scholar.
57 This method of illustrating the relationship between development and timing of adoption is similar to that used by quantitative geographers who have analyzed the diffusion of innovations among urban centers by plotting size of urban center at the time of adoption by the year of adoption for various types of innovations. See Berry, , “Problems of Data Organization and Analytical Methods in Geography,” p. 521 Google Scholar; Berry, and Neils, , “Location, Size, and Shape of Cities,” p. 299 Google Scholar; and Pedersen, , “Innovation Diffusion Within and Between National Urban Systems,” pp. 209–212 Google Scholar.
58 Although there is considerable disagreement about the relevance of tests of significance for interpreting correlations in nonsample data, we will present them for readers who find them useful. These correlations for work force in agriculture and work force in industry are significant at the .01 level. That for real income is significant at the .02 level.
59 Rys, Vladmir, “Comparative Studies of Social Security: Problems and Perspectives,” Bulletin of the International Social Security Association, Nos. 7-8 (July-August, 1966), 242–268, at p. 245Google Scholar.
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63 On the basis of data made available to the senior author by the Ministry of Labor in Peru, the earliest date of foundation of the mutual benefit associations which have received government recognition in that country is around 1900, only a few years before the first adoption of social security. Although there may have been other associations which were founded much earlier, this suggests at least tentatively that these associations had a far more limited development prior to the appearance of social security than in Europe.
64 Lampman, Robert J., “The Investment of Social Security Reserves and Development Problems: The Philippines as a Case History,” in The Role of Social Security in Economic Development, ed. Kassalow, , pp. 92–93 Google Scholar.
65 The importance of social security in weakening labor movements has been suggested in Gaston V. Rimlinger, “Social Security and Industrialization: The Western Experience, with Possible Lessons for the Less Developed Nations,” in Kassalow, , The Role of Social Security in Economic Development, pp. 135 and 143 Google Scholar and in Chaplin, David, The Peruvian Industrial Labor Force (Princeton: Princeton University Press, 1967), p. 78 Google Scholar. The remarkable history of resistance to the adoption of national unemployment insurance in the United States by the American Federation of Labor also illustrates the importance of the threat posed to labor movements by social security. See McConnell, Grant, Private Power and American Democracy (New York: Alfred A. Knopf, 1966), p. 85 Google Scholar.
69 The correlations for work force in industry and real income for these countries are .34 and .22 respectively, with slight increases if Germany and the United Kingdom are removed.
67 A close analogue to this pattern of diffusion may be found in social psychological discussions of marginal individuals as innovators. See Rogers, Everett M., Diffusion of Innovations (New York: The Free Press, 1962)Google Scholar, chapter 7. In “The Diffusion of Innovations…,” p. 883, Walker notes that Mississippi was the first state in the United States to adopt a general sales tax. This is not surprising, in light of the fact that this is a regressive tax. However, Walker does not report the pattern of adoption for this innovation following its introduction in Mississippi.
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69 See the Gerschenkron and Dahrendorf references cited in footnote 62 above.
70 Berry, and Neils, , “Location, Size, and Shape of Cities' as Influenced by Environmental Factors,” p. 298 Google Scholar, have used a somewhat similar mapping procedure to illustrate the spatial diffusion of street cars in the United States.
71 These correlations are significant at the .01, .01, and .20 levels respectively. The correlations presented in the following paragraph are all significant at the .01 level.
72 The first involves ambiguity with regard to the year of adoption by the United States, which might be scored around 1920 because of the extensive development of work injury programs at the state level by that date (see Appendix). Though the date that was used for the United States does not make much difference in the correlations presented earlier, it places the United States in the group of late adopters and has a considerable effect on the correlations within this group. The other outlier is Libya in the correlation involving real income. Libya adopted at a far higher level of income than would be expected because it was already a major exporter of oil at the time of adoption. It might be argued that real income is a particularly misleading indicator of development for Libya.
73 United States Department of Health, Education, and Welfare, Social Security Programs Throughout the World, 1971. The only nations not reporting to the Social Security Administration were Guinea, Fiji, Kuwait, Lesotho, Maldive Islands, Nepal, North Korea, and Southern Yemen.
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