The Effect Of Social Spending On Income Inequality
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The Effect Of Social Spending On Income Inequality
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Author : Monica Ospina
language : en
Publisher:
Release Date : 2014
The Effect Of Social Spending On Income Inequality written by Monica Ospina and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2014 with categories.
Using a panel dataset from 1980 to 2000 this paper analyzes the determinants of income inequality in Latin American countries with special attention paid to education, health, and social security expenditures. I build on previous research by solving for the endogeneity of the social spending variables in the income inequality equation. This study undertakes 2SLS and GMM methods in order to control for the correlation of some of the regressors with the disturbance term. While government expenditure affects inequality, an increase in inequality may be related to social, economic and political changes that can also affect government expenditures. Therefore, social spending is potentially endogenous in the inequality regression and, unless this source of endogeneity is accounted for, the estimated parameters will be not consistent. Results show that social spending variables are endogenous with income inequality index. Once endogeneity is controlled for, education and health expenditures have a negative effect on income inequality, while social security expenditures have no effect on income inequality. I also find that models that do not take into account endogeneity of social spending variables overestimate the effects of education and health spending.
Social Spending Generosity And Income Inequality
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Author : Judith Niehues
language : en
Publisher:
Release Date : 2010
Social Spending Generosity And Income Inequality written by Judith Niehues and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2010 with categories.
Reallocating Public Spending To Reduce Income Inequality Can It Work
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Author : Djeneba Doumbia
language : en
Publisher: International Monetary Fund
Release Date : 2019-09-06
Reallocating Public Spending To Reduce Income Inequality Can It Work written by Djeneba Doumbia and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2019-09-06 with Business & Economics categories.
Can a government reduce income inequality by changing the composition of public spending while keeping the total level of expenditure fixed? Using newly assembled data on spending composition for 83 countries across all income groups, this paper shows that reallocating spending toward social protection and infrastructure is associated with reduced income inequality, particularly when it is financed through cuts in defense spending. However, the political and security situation matters. The analysis does not find evidence that lowering defense spending to finance infrastructure and social outlays improves income distribution in countries with weak institutions and at higher risk of conflict. Reallocating social protection and infrastructure spending towards other types of spending tends to increase income inequality. Accounting for the long-term impact of health spending, and particularly education spending, helps to better capture the equalizing effects of these expenditures. The paper includes a discussion of the implications of the findings for Indonesia, a major emerging market where income inequality is at the center of policy issues.
Does Government Spending Affect Income Inequality A Meta Regression Analysis
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Author : Edward Anderson
language : en
Publisher:
Release Date : 2017
Does Government Spending Affect Income Inequality A Meta Regression Analysis written by Edward Anderson and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2017 with categories.
In this paper findings of a meta-regression analysis are presented exploring the effects of government spending on income inequality, with a particular focus on low- and middle-income countries. We identify a total of 84 separate studies containing over 900 estimates of the effect of one or more measures of spending on one or more measures of income inequality. The results show some evidence of a moderate negative relationship between government spending and income inequality, which is strongest for social welfare and other social spending, and when using the Gini coefficient or the top income share as the measure of inequality. However, both the size and direction of the estimated relationship between government spending and income inequality is affected by a range of other factors, including the control variables and estimation method used. We also find evidence of publication bias, in that negative estimates of the relationship appear to be under-reported in the literature.
The Political Economy Of Public Spending On Education Inequality And Growth
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Author : Mark Gradstein
language : en
Publisher: World Bank Publications
Release Date : 2003
The Political Economy Of Public Spending On Education Inequality And Growth written by Mark Gradstein and has been published by World Bank Publications this book supported file pdf, txt, epub, kindle and other format this book has been release on 2003 with Education categories.
Public provision of education has often been perceived as universal and egalitarian, but in reality it is not. Political pressure typically results in incidence bias in favor of the rich. The author argues that the bias in political influence resulting from extreme income inequalities is particularly likely to generate an incidence bias, which we call social exclusion. This may then lead to a feedback mechanism whereby inequality in the incidence of public spending on education breeds higher income inequality, thus generating multiple equilibria: with social exclusion and high inequality; and with social inclusion and relatively low inequality. The author also shows that the latter equilibrium leads to higher long-run growth than the former. An extension of the basic model reveals that spillover effects among members of social groups differentiated by race or ethnicity may reinforce the support for social exclusion.
Equity And Fiscal Policy
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Author : Ivanna Vladkova Hollar
language : en
Publisher: International Monetary Fund
Release Date : 2010-05-01
Equity And Fiscal Policy written by Ivanna Vladkova Hollar and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2010-05-01 with Business & Economics categories.
How does fiscal policy fare in improving the underlying income distribution in Central America? We integrate the data from a number of existing tax and public expenditure studies for the countries in the region and find that the distributional effect of taxation is regressive but small. In contrast, the redistributive impact of social spending is large and progressive, leading to a progressive net redistributive effect in all countries of the region. We also show that raising tax revenues and devoting the proceeds to social spending would unambiguously improve the income of the poorest households.
Age Class Politics And The Welfare State
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Author : Fred C. Pampel
language : en
Publisher: Cambridge University Press
Release Date : 1989
Age Class Politics And The Welfare State written by Fred C. Pampel and has been published by Cambridge University Press this book supported file pdf, txt, epub, kindle and other format this book has been release on 1989 with Political Science categories.
Detailed analysis of data from the UN, ILO, and the World Bank leads to the conclusion that a large aged population, especially in combination with democratic political processes, has a direct and crucial influence on the level of welfare expenditures.
The Distributional Effects Of Government Spending And Taxation
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Author : D. Papadimitriou
language : en
Publisher: Springer
Release Date : 2006-05-26
The Distributional Effects Of Government Spending And Taxation written by D. Papadimitriou and has been published by Springer this book supported file pdf, txt, epub, kindle and other format this book has been release on 2006-05-26 with Political Science categories.
This book focuses on the distributional consequences of the public sector and examines and documents, theoretically and empirically, the effects of government spending and taxation on personal distribution, and includes chapters investigating the relationship between the public sector and functional distribution of national income.
Social Spending In Korea
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Author : Selim Elekdag
language : en
Publisher: International Monetary Fund
Release Date : 2012-10-19
Social Spending In Korea written by Selim Elekdag and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2012-10-19 with Business & Economics categories.
Going forward, Korea faces two closely related challenges: sustaining economic growth against the backdrop of a rapidly aging population and ameliorating income inequality. This paper argues that a gradual increase in social spending could promote more sustainable and inclusive growth in Korea. In particular, simulation results suggest that social spending which supports labor market reforms can boost longer-term growth. However, despite rapid increases recently—albeit from a low base—there is still a social spending gap relative to Korea’s OECD peers. Because of several fiscal challenges in the coming decades, increases in social spending should be incremental, and would be usefully guided by a longer-term fiscal framework.
Inequality And Income
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Author : Edward Castronova
language : en
Publisher:
Release Date : 2001
Inequality And Income written by Edward Castronova and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2001 with categories.
This paper estimates models of social spending, income risk, and per capita income levels using data from a post-war panel of OECD countries. The objective is to test two theories about the pathway from inequality to per capita income. According to one theory, inequality reduces incomes because it induces social spending, which acts as a drag on the economy. The results here suggest, however, that inequality does not seem to induce social spending, and social spending does not seem to lower per capita incomes. According to a second theory, inequality causes upheaval which adds to the volatility of per capita income, which may reduce the level of per capita income. The results suggest, however, that volatility, measured here as the standard deviation of per capita income, has little measurable impact on either per capita income or social spending. The mainsprings of per capita income are more likely to be the traditional factors: the work force, human capital, and physical capital.