Switzerland
(last updated February 2001) |
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Introduction and OverviewSince, in the spirit of its long-time neutrality, Switzerland has chosen to remain outside of the European Union (EU), it does not appear in comparative data series and studies covering the EU countries. What comparative data are available come from its membership in the Organization for Economic Cooperation and Development (OECD) or from Swiss reports. Beat Fux, in a forthcoming monograph, offers a series of carefully researched characterizations: "…one is confronted with 26 different policies according to the number of cantons rather than a supra-cantonal family policy. The weakness of the federal state is partly compensated for by the development of a rich network of communitarian structures…."(1) The canton's dominance and federal state weakness delays implementation of federal laws, pending long bargaining, and leads to "extreme fragmentation and heterogeneity of policies in cantons and communes."(2) The direct-democracy tradition (initiatives and referendums) offers leverage to pressure groups and cantons and impedes new policy initiatives. In addition the strong influence of the subsidiarity principle creates pressure to leave much to families and voluntary agencies; and the long-prosperous economy and high average per-capita incomes support such adaptations. Switzerland's early modernization of family and household structures followed its historically early industrialization and integration into world markets. However, with limited governmental support the family "solutions" and adaptations tend to be individual and what Fux calls "pragmatic". Government has not helped with child care and accommodating to the division of labor. In many ways (see below), Swiss demography resembles European averages, but many very traditional family values and attitudes persist. Female labor force participation is constrained by gender barriers. Where prosperity matters, the country's economic capacity is visible in Swiss social and family policies. But where policy regimes require committed response to the new family demography, there is as yet limited action. Recent Swiss reports, however, stress commitment to the UN Convention on the Rights of the Child which was ratified in 1997. Fux and others interpret all this unique, mixed story by referring to the early, advanced Swiss economic development, a strong ethnic-linguistic pluralism (four languages, many foreigners, a unique geographic location), and the cultural division between Catholics and Protestants, rural and urban, Swiss. Others also classify Switzerland with the corporatist polities in which at the national-level peak associations of business and labor negotiate and arrive at agreements along with the federal government to avoid conflict and to protect the country's economic interest through shared economic strategies.
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Government AgenciesFederal government agencies supervise the Swiss social protection (welfare) system and administer segments affecting public employees, and some others. The cantons have larger administrative and considerable supervisory responsibilities. Private companies and funds play major roles. The Federal Social Insurance Office, under the general supervision of the Department of Interior, collects social insurance contributions and pays pensions out of a decentralized network of cantonal, industrial, and federal equalization funds. Occupational pensions were administered in 1996 by 11,572 registered institutes. This office also supervised the 119 recognized funds authorized to provide sickness and maternity benefits and supervises the Swiss National Insurance Fund which shares responsibility for work injury coverage. Its Center for Family Issues plays a coordinating role for the Federal Council. The Federal Office on Industry, Economic Development, and Employment approves and supervises cantonal, regional, and occupational unemployment funds but the Federal Social Insurance Office supervises contributions. Child and Family Allowances are administered by numerous public and private allowance funds, supervised by cantonal governments.
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Demographic and Other Social TrendsSwitzerland's population is a bit over 7 million, of which the under-15s are 17.6 percent, a proportion almost identical with the EU average (17.3). Similarly its over-65s proportion, 15 percent, is similar to the EU proportion (15.7). Its total fertility rate (1998) of 1.44 is also typical of the EU (1.45) and low. Its out-of-wedlock birth rate of 9 percent was lower than most EU rates and not increasing. The in-marriage birth rate in 1994 of the 15-19 group was 2.8, the out-of-wedlock group was 1.3. For the 20-24 group, the in-marriage rate was 37.9 and the out-of-marriage rate was 4.4. Of Swiss households, (1996), 28 percent were couples without children, 46 percent couples with children and 6 percent lone parents, compared to an EU rate of 7 percent. Of all children living in private households, 90 percent live with a couple and 6.6 percent with only a mother or father. The demographic history is stable: marriage rates lower and divorce rates higher than the European average but cohabitation also somewhat above the average; later ages for childbirth; ages at first marriage are higher than the rest of Europe and still increasing; significant numbers do not marry at all; cohabitation is often followed by marriage at time of childbirth. Female labor force participation rates are below Scandinavia, but among the higher rates in the OECD. However, in 1997, 45.7 percent of this employment was part-time. The Swiss labor market is described as extremely gender-segregated and working women are disadvantaged by the lack of child care and other policy supports. Youth unemployment and female unemployment were comparatively low in the late 1990s. In the 1960-1990 period the majority of mothers left employment soon after giving birth to their first child. Of mothers with one dependent child, 30 percent worked in 1994: the rates were 22 percent with 2 children and 17 percent with 3. These are low proportions comparatively. At least one-third of lone mothers did not work outside the home but their rates were more than double rates for married and cohabitating mothers. Given the growth in female labor force participation by the late 1990s, these differentials for mothers would apear to be decreasing, however.
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Social ProtectionThe public sector in Switzerland collects 34.7 percent of GDP in taxes (1996), compared to a European average of 42.4 percent (and about 6 points above the U.S. and Japan). It is heavier on personal income taxes and easier on corporate taxes than the European averages. Similarly employee social security contributions are above European averages and employer contributions lower. Government revenue and expenditures as a proportion of the GDP are below typical European patterns in prosperous states. As a modern and affluent society, Switzerland has developed the major income and tax supports featured in welfare state social protection systems. Indeed, it led with a first child labor law (1815 Zurich) and in protecting working conditions for pregnant women and allowing them an 8 week maternity leave (1877). As early as 1912, federal family law respected different family traditions, equality between spouses, and the rights of children, whether born in or out of wedlock. However, traditional family structures, subsidiarity principles, and cantonal rights and roles have left the country underdeveloped with regard to several major family policy regimes. Whereas there were early maternity benefits tied to medical care, there were no parental leaves. Child care was seriously underdeveloped. Women were long second-class actors in the labor force, so that arrangements to mesh work and family life lagged. Now, all social protection sectors are moving forward, still constrained by the federal government's limitations and the slow and difficult direct-democracy process. The country still lacks nationally guaranteed maternity allowances or child benefits. Historically, Switzerland's public sector social expenditures as a percentage of GDP have been below the OECD average, not surprising (see above) given the tendency for this government to claim less of the GDP than the OECD average. However, social expenditure does have a strong place in what government does do. Health, education, and pensions are areas in which shares of social expenditures are comparatively high for Switzerland (looking at OECD averages). For example, with Germany, Switzerland follows the U.S. in the proportion of GDP committed to total health expenditure, and only 3 countries lead Switzerland if one looks at public expenditure alone. Similarly it is fourth in line after the U.S., Denmark, and Austria in per pupil education expenditures. By contrast, in the mid-1990s Switzerland's combined public expenditures on family allowances, maternity and other family benefits was 5.1 percent of total social spending, compared to a European average of 6.5. The per child expenditure was below the European average according to a Gornick and Meyers study.(3) The big items are federal old-age pensions, other components of the occupational pension schemes, and health insurance. Using the relative measure(50 percent of median income), Switzerland's child poverty is 6.3 percent, the 10th lowest rate in a group of 25 industrialized nations; the comparable elderly rate is 1.8 percent. The poverty rate for children in lone-mother families is 21.2 and in two-parent families, 4.8. For more information on the social security systems, labour market regulations, collective bargaining, social and family policies, see the International Reform Monitor.
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Child, Youth and Family Policy RegimesMaternity, Paternity, Parental, and Family LeavesAccording to Fux (4) fertility decline and economic crisis in the late 1920s initiated a discussion of the economic protection of the family, followed by the introduction of a "family article" in the federal constitution. Under this article the federal government was authorized to introduce national statutory family allowances and to support family housing. "It received an explicit mandate to establish maternity insurance." Although Switzerland led Europe in covering women with its Factory Law of 1877, it had not yet established federal maternity insurance by 1990. It has failed in four referenda in recent decades: 1971, 1984, 1987, 1999. National legislation on parental leave has been a political issue since 1945. A 1984 initiative (government financing of maternity costs, introduction of parental leave, improved legal protection against dismissal because of pregnancy) was rejected by a substantial majority. The main argument was about costs. Another (1987) plebicite defeated efforts to introduce maternity insurance within the framework of federal health insurance legislation. For some time, therefore, childbearing was mostly covered by private health insurance, but government did pay for prenatal checkups and confinement hospital costs. Collective bargaining agreements, various labor laws, health insurance laws, etc. did protect employed women against dismissal during pregnancy and for 16 weeks after childbirth. Most received at least part of their pay during this period. Federal and canton employees had different leave protections and private sector variations were considerable. During the 1980s and 1990s at least nine cantons enacted means-tested maternity benefits. Most recently (2000) both houses of the federal parliament have passed a motion calling for a 14 week maternity leave as a compulsory measure. Action is being awaited.
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Early Childhood Education and Care (ECEC)Fux offers a concise summary:
Fux reports the lack of adequate data about coverage and program characteristics, but some studies from the 1980s and early 1990s report that:
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Family and Child AllowancesHere, too, one faces limited availability of data and we, again, rely on Fux for several generalizations from early 1990 studies.(6) By way of context: "Sweden is characterized by a comparatively high standard of living, a high income level, and comparatively few poor people…". In comparative perspective, personal income taxes and social insurance contributions are low and have been for decades. The Swiss family allowance system, the core of the country's family policy, has expenditure levels comparable to Europe's poor countries and grants which are modest. The size of allowances (and indeed the system of administration) is varied along religious and linguistic dimensions. Only one-third of the allowances are administered or provided by federal or cantonal governments, the remainder by professional or business organizations, even though minimum provisions for the country are defined by law. Comparative data are inevitably limited. Under the federal program and most cantonal programs children under age 16 are eligible for the allowances, as are students to age 25. Disabled youths are covered to 18 or 20. Allowances in the mountain regions tend to be higher, as are allowances for third and subsequent children. Many cantons have birth allowances and some replace family allowances with higher vocational training allowances. Some have marriage grants. The system is employment-related and government-financed. Administration is through numerous insurance funds: cantonal and private. Expenditures, in the early 1990s approached 1 percent of GDP. Most benefits are paid out in the wage packet. Transportation legislation provides free transport for children under age 6 on public and private accommodations and half-fare for those 6-16. Most services also offer reduced family fare.
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Child and Family Tax BenefitsThe federal state, cantons, and municipalities impose taxes; and the federal taxes are the lowest. Despite numerous tax provisions to ease the burdens of the family's child-related costs, their totality shows no more redistributive impact than that from child allowances. In general, total impact of taxes and allowances is such that family help with child-related costs increases with family size and decreases as family income rises.(7) Various tax provisions are aimed at abolishing inequities between types of families. The family is the unit of taxation, and the principle is neutrality among family types. There is consideration of lone parents and of dependent children. There are extreme cantonal differences, however, constituting 26 systems. Some have child tax credits, some have progressively higher child tax deductions by the number of children. The income tax systems include church taxes.
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Child SupportA 1978 revision of Swiss family law provided for governmental support at the cantonal level for child maintenance in case of divorce. A report from the federal statistical office shows that between 1977 and 1989 all cantons adopted advance maintenance schemes involving maximum per child payments of 7200 Sfr on average for the country, a significant sum (1990). On average local authorities recouped through collection 57 percent of what they paid out. The "averages" mask substantial cantonal variations in per child payments, waiting periods (4 cantons), means-testing (6 cantons), consequences of non-payment by the ex-spouse.(8)
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Other Child Conditioned Income TransfersThe benefits under the Swiss social insurance and mandatory occupational pension system have the usual protections for child dependents: 'Dependents' supplements for old age pensions at a generous 40 percent level (children to 18; to 25 if a student); dependents' supplements to permanent disability benefits (similar ages and rate); survivor benefits (similar ages and rate, but 80 percent if both parents deceased); survivor benefits in instances of work injury. There are no specific dependent supplements to unemployment insurance, but benefit amounts are 80 percent of last earnings if the insured has dependents or earned less than a fixed sum, or is disabled. Others receive 70 percent of last earnings. Means-tested social assistance (which has a social service component) is a canton or community program and takes account of the presence of children. This is also the case with unemployment assistance, which follows the exhaustion of entitlement to unemployment insurance benefits. There is a system of pension credits for years spent at home rearing children.
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Child and Adolescent HealthChildren and youth are covered equally with their parents in Switzerland's pluralistic systems of insurance, which are based in a long history of legislation. Medical care coverage is compulsory and the law specifies a comprehensive list of services. Fux reports that 97 percent of the population is covered. The child and youth delivery patterns vary by region and community but the health results, reflecting both standard of living and health care, show Switzerland with good child health indicators, among the healthiest countries.
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School-Aged Children: Policies and ProgramsAgain, data are limited. The cantonal system is pluralistic and complex but of good quality. As noted expenditures are relatively high. Compulsory education extends to 15 and 98 percent of the 15 year-olds and 9- percent of the 16s are in school. The rates are also high for the 17s, 18s, 19s, and 20s, but the portion in tertiary education is not high (13 percent compared to 40 for the U.S. in these ages.) Immigrant children lag in all phases of the educational system. There has been statutory authority since 1902 for an extensive program of federal and cantonal grants for students, including those in vocational and agricultural education. Data for the 1970s show 25 percent of students aided. The federal railways offer substantial discounts for children and their families.
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YouthThe Switzerland 1999 Report to a meeting of the Conference of European Ministers Responsible for Family Affairs expresses some concern about adolescents, some 10-30 percent of whom have negative health behavior (alcohol, drug, tobacco use, high-risk sexual behavior, accidents, violence). Major causes of death in the 15-19 group are accidents on the road or during leisure activities, followed by suicides. Switzerland has one of the the highest suicide rates in Europe for young people. Some cantons have developed special prevention efforts. Nationally, a determination to help young people "find a place in society" takes the form of efforts to promote various types of participation, which "is a deeply rooted tradition in Swiss political life".(9) Switzerland was one of the fourteen countries participating in the OECD thematic review, From Initial Education to Working Life - Making Transitions Work . For more detail on the transition to working life in Switzerland, see OECD's background report on Switzerland.
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ReferencesSince Switzerland is not a member of the European Union (EU), it is not included in EU data series and comparative studies. We rely on OECD data series and Swiss single-country reports. Our main source is a forthcoming monograph by Beat Fux, part of the series on Family Change and Family Policies in the West, to be published in a multi-volume series by Clarendon Press, Oxford, under the joint senior editorship of Peter Flora (Mannheim, Germany), Sheila Kamerman, and Alfred J. Kahn (Columbia University, New York). We have drawn on OECD statistical series and on the Swiss Report cited in note 9. OECD, Initial Education to Working Life - Making Transitions Work. Paris: OECD Publications, 2000. Francois Galley and Thomas Meyer, Thematic Review of the Transition from Initial Education to Working Life: Switzerland Background Report (OECD, Paris: 1998). |
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Notes1 Fux, Introduction, p.6. 2 Ibid. 3 Janet Gornick and Marcia Meyers, "Cross National Family Policy Developments in Economic Hard Times," forthcoming in K. Vleminckx and T. Smeeding, Child Well-Being, Child Poverty, and Child Policy in Modern Nations (Bristol, England: The Policy Press, 2000). 4 Fux, Ch. 2, p. 4. 5 Fux, Ch. 2, p. 6. 6 Fux, Ch. 3. 7 Fux, Ch. 3, pp. 1,10. 8 Fux, Ch. 4, p. 1. 9 Conference of European Ministers Responsible for Family Affairs, "Towards A Child-Friendly Society", (Strasbourg: Council of Europe, 1999), National Reports, Part II, pp. 206-207.
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ContactsWashington Embassy Embassy of Switzerland Ministry Mme Ruth Maeder
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