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The ratio of social expenditures to GDP is replaced by the net replacement rate in (6) and by the nominal replacement income in (7).
This compares the value of the market with the net replacement cost of corporate assets.
The OECD finds that the current net replacement rate from all pension income for a worker on average earnings ranges from under 40% in Japan to over 111% in Greece.
Net replacement rate 7.
Net replacement rates resulting from 2010 policy parameters, in percent.
The expected payments in the case of unemployment measured by the net replacement rate and the net replacement income do also not act as "welfare magnets".
We have argued that this is a good proxy for the perceived net replacement rate.
Development of the average net replacement rates in the EU-15, 2002 - 2010 Figure 1A.
In countries operating insurance benefits, net replacement rates typically decline during the unemployment spell.
When estimating wage equations for individuals, we find strong, significant wage effects from variations in the net replacement rate.
In Table 3, the net replacement rate and the progressivity variable are based on Mincer wage predictions.
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