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Social Protection and Growth

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  • Roman Arjona
  • Maxime Ladaique
  • Mark Pearson
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    Abstract

    Public social expenditure accounts for 25 per cent of GDP, or even more in some countries. That expenditure on this scale has some effect on growth seems very likely, but the direction of the effect is disputed by different schools of thought. Using new data sources and panel data econometric techniques, this paper sheds new light on the issue. Evidence is found in favour of the proposition that more social expenditure reduces growth. However, “active” social spending, including active labour market policies, make work pay policies and spending on family services, appears to have the opposite effect and may be growth-enhancing.

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    File URL: http://dx.doi.org/10.1787/eco_studies-v2002-art8-en
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    Bibliographic Info

    Article provided by OECD Publishing in its journal OECD Economic Studies.

    Volume (Year): 2002 (2002)
    Issue (Month): 2 ()
    Pages: 7-45

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    Handle: RePEc:oec:ecokaa:5lmqcr2jj2nq

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    References

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    1. CASAMATTA, Georges & CREMER , Helmuth & PESTIEAU, Pierre, . "The political economy of social security," CORE Discussion Papers RP, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) -1475, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    Cited by:
    1. Catrinescu, Natalia & Leon-Ledesma, Miguel & Piracha, Matloob & Quillin, Bryce, 2006. "Remittances, Institutions and Economic Growth," IZA Discussion Papers 2139, Institute for the Study of Labor (IZA).
    2. Housseima Guiga & Jaleleddine Ben Rejeb, 2012. "Poverty, Growth and Inequality in Developing Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 2(4), pages 470-479.
    3. Frigyesi, Veronika & Kapolyi, László, 2005. "Szociálpolitika az Európai Unióban
      [Welfare policy in the European Union]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 289-305.

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