IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v52y2015i1p87-102.html
   My bibliography  Save this article

The local structure of the welfare state: Uneven effects of social spending on poverty within countries

Author

Listed:
  • Merle Zwiers

    (Delft University of Technology, The Netherlands; University of Amsterdam, The Netherlands)

  • Ferry Koster

    (Erasmus University Rotterdam, The Netherlands; University of Amsterdam, The Netherlands; University of Leiden, The Netherlands)

Abstract

Research has shown that there is a strong negative relationship between social spending and poverty levels. Among urban inequality researchers it is often assumed that, compared with the USA, the welfare state has mitigated social differences explaining lower levels of urban inequality in most European countries. However, research on the role of the welfare state is often conducted on the national level, and is thus unable to draw conclusions on the effects of social spending and redistribution on a lower level, failing to take the within-country variation into account. This study connects welfare state research to urban inequality research by investigating the effects of social spending on poverty in urban and non-urban areas. We have conducted a cross-national multilevel logistic regression analysis using Eurostat and European Social Survey data of 2008. Our findings suggest that the effects of social spending are unequally distributed within countries.

Suggested Citation

  • Merle Zwiers & Ferry Koster, 2015. "The local structure of the welfare state: Uneven effects of social spending on poverty within countries," Urban Studies, Urban Studies Journal Limited, vol. 52(1), pages 87-102, January.
    • Handle: RePEc:sae:urbstu:v:52:y:2015:i:1:p:87-102
    DOI: 10.1177/0042098014523688
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0042098014523688
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0042098014523688?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Laurent Gobillon & Harris Selod & Yves Zenou, 2007. "The Mechanisms of Spatial Mismatch," Urban Studies, Urban Studies Journal Limited, vol. 44(12), pages 2401-2427, November.
    2. Branko Milanovic, 2005. "Can We Discern the Effect of Globalization on Income Distribution? Evidence from Household Surveys," The World Bank Economic Review, World Bank, vol. 19(1), pages 21-44.
    3. Jan K. Brueckner & Yves Zenou, 2003. "Space and Unemployment: The Labor-Market Effects of Spatial Mismatch," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 242-262, January.
    4. Chris Hamnett, 1994. "Social Polarisation in Global Cities: Theory and Evidence," Urban Studies, Urban Studies Journal Limited, vol. 31(3), pages 401-424, April.
    5. Koen Caminada & Kees Goudswaard, 2009. "Effectiveness of Poverty Reduction in the EU: A Descriptive Analysis," Poverty & Public Policy, John Wiley & Sons, vol. 1(2), pages 1-49, July.
    6. Friso Schlitte & Tiiu Paas, 2008. "Regional Income Inequality and Convergence Processes in the EU-25," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2008(Suppl. 2), pages 29-49.
    7. Joakim Palme & Walter Korpi, 1998. "The Paradox of Redistribution and Strategies of Equality: Welfare State Institutions, Inequality and Poverty in the Western Countries," LIS Working papers 174, LIS Cross-National Data Center in Luxembourg.
    8. Lane Kenworthy, 2004. "Welfare States, Real Income and Poverty," LIS Working papers 370, LIS Cross-National Data Center in Luxembourg.
    9. Borjas, George J, 1999. "Immigration and Welfare Magnets," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 607-637, October.
    10. Lindbeck, Assar, 2006. "The Welfare State -- Background, Achievements, Problems," Working Paper Series 662, Research Institute of Industrial Economics.
    11. Edward L. Glaeser & Matt Resseger & Kristina Tobio, 2009. "Inequality In Cities," Journal of Regional Science, Wiley Blackwell, vol. 49(4), pages 617-646, October.
    12. Lindbeck, Assar, 1995. "Hazardous Welfare-State Dynamics," American Economic Review, American Economic Association, vol. 85(2), pages 9-15, May.
    13. Milanovic, Branko, 2002. "Can we discern the effect of globalization on income distribution? evidence from household budget surveys," Policy Research Working Paper Series 2876, The World Bank.
    14. Caminada, Koen & Goudswaard, Kees, 2009. "Social expenditure and poverty reduction in the EU15 and other OECD countries," MPRA Paper 20138, University Library of Munich, Germany.
    15. Scott, Allen J. (ed.), 2001. "Global City-Regions: Trends, Theory, Policy," OUP Catalogue, Oxford University Press, number 9780198297994.
    16. Koen Caminada & Kees Goudswaard, 2001. "International Trends in Income Inequality and Social Policy," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 8(4), pages 395-415, August.
    17. Chris Hamnett, 1996. "Social Polarisation, Economic Restructuring and Welfare State Regimes," Urban Studies, Urban Studies Journal Limited, vol. 33(8), pages 1407-1430, October.
    18. Duane Swank, 1998. "Funding the Welfare State: Globalization and the Taxation of Business in Advanced Market Economies," Political Studies, Political Studies Association, vol. 46(4), pages 671-692, September.
    19. Timothy Smeeding, 2006. "Poor People in Rich Nations: The United States in Comparative Perspective," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 69-90, Winter.
    20. Blank, Rebecca M., 1988. "The effect of welfare and wage levels on the location decisions of female-headed households," Journal of Urban Economics, Elsevier, vol. 24(2), pages 186-211, September.
    21. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June.
    22. John F. Kain, 1968. "Housing Segregation, Negro Employment, and Metropolitan Decentralization," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 82(2), pages 175-197.
    23. Dwight Lee, 1987. "The tradeoff between equality and efficiency: Short-run politics and long-run realities," Public Choice, Springer, vol. 53(2), pages 149-165, January.
    24. Steven Pressman, 2000. "Explaining the Gender Poverty Gap in Developed and Transitional Economies," LIS Working papers 243, LIS Cross-National Data Center in Luxembourg.
    25. John Friedmann, 1986. "The World City Hypothesis," Development and Change, International Institute of Social Studies, vol. 17(1), pages 69-83, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zwiers, Merle & Kleinhans, Reinout & van Ham, Maarten, 2015. "Divided Cities: Increasing Socio-Spatial Polarization within Large Cities in the Netherlands," IZA Discussion Papers 8882, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zwiers, Merle & Kleinhans, Reinout & van Ham, Maarten, 2015. "Divided Cities: Increasing Socio-Spatial Polarization within Large Cities in the Netherlands," IZA Discussion Papers 8882, Institute of Labor Economics (IZA).
    2. Caminada, Koen & Goudswaard, Kees & Koster, Ferry, 2010. "Social Income Transfers and Poverty Alleviation in OECD Countries," MPRA Paper 27345, University Library of Munich, Germany.
    3. Tim Cassiers & Christian Kesteloot, 2012. "Socio-spatial Inequalities and Social Cohesion in European Cities," Urban Studies, Urban Studies Journal Limited, vol. 49(9), pages 1909-1924, July.
    4. Po-Fen Tai, 2013. "Gender Matters in Social Polarisation: Comparing Singapore, Hong Kong and Taipei," Urban Studies, Urban Studies Journal Limited, vol. 50(6), pages 1148-1164, May.
    5. Olof Åslund & John Östh & Yves Zenou, 2010. "How important is access to jobs? Old question--improved answer," Journal of Economic Geography, Oxford University Press, vol. 10(3), pages 389-422, May.
    6. Koen Caminada & Kees Goudswaard & Chen Wang & Jinxian Wang, 2019. "Income Inequality and Fiscal Redistribution in 31 Countries After the Crisis," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 61(1), pages 119-148, March.
    7. Pierre-Philippe Combes & Bruno Decreuse & Morgane Laouénan & Alain Trannoy, 2016. "Customer Discrimination and Employment Outcomes: Theory and Evidence from the French Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 34(1), pages 107-160.
    8. Gobillon, Laurent & Rupert, Peter & Wasmer, Etienne, 2014. "Ethnic unemployment rates and frictional markets," Journal of Urban Economics, Elsevier, vol. 79(C), pages 108-120.
    9. Justin Tyndall, 2017. "Waiting for the R train: Public transportation and employment," Urban Studies, Urban Studies Journal Limited, vol. 54(2), pages 520-537, February.
    10. Gautier, Pieter A. & Zenou, Yves, 2010. "Car ownership and the labor market of ethnic minorities," Journal of Urban Economics, Elsevier, vol. 67(3), pages 392-403, May.
    11. Chris Hamnett, 2011. "Urban Social Polarization," Chapters, in: Ben Derudder & Michael Hoyler & Peter J. Taylor & Frank Witlox (ed.), International Handbook of Globalization and World Cities, chapter 32, Edward Elgar Publishing.
    12. Chakravarty, Dwarka & Goerzen, Anthony & Musteen, Martina & Ahsan, Mujtaba, 2021. "Global cities: A multi-disciplinary review and research agenda," Journal of World Business, Elsevier, vol. 56(3).
    13. Mónica Patricia Ospina, 2014. "El efecto del gasto social en la distribución del ingreso: un análisis para economías latinoamericanas," Revista Ciencias Estratégicas, Universidad Pontificia Bolivariana, December.
    14. repec:hal:spmain:info:hdl:2441/2tlvpn71ve888pnch88db9g683 is not listed on IDEAS
    15. Koen Caminada & Chen Wang, 2011. "Disentangling Income Inequality and the Redistributive Effect of Social Transfers and Taxes in 36 LIS Countries," LIS Working papers 567, LIS Cross-National Data Center in Luxembourg.
    16. Zenou, Yves, 2013. "Spatial versus social mismatch," Journal of Urban Economics, Elsevier, vol. 74(C), pages 113-132.
    17. Vincent Mahler & David Jesuit, 2004. "State Redistribution in Comparative Perspective: A Cross-National Analysis of the Developed Countries," LIS Working papers 392, LIS Cross-National Data Center in Luxembourg.
    18. Thomas Maloutas & Hugo Botton, 2021. "Trends of Social Polarisation and Segregation in Athens (1991–2011)," Social Inclusion, Cogitatio Press, vol. 9(2), pages 117-128.
    19. Goudswaard, Kees & Caminada, Koen, 2008. "The redistributive impact of public and private social expenditure," MPRA Paper 20178, University Library of Munich, Germany.
    20. Koen Caminada & Kees Goudswaard, 2005. "Are Public and Private Social Expenditures Complementary?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 11(2), pages 175-189, May.
    21. Anna Matas & Josep-Lluis Raymond & Josep-Lluis Roig, 2010. "Job Accessibility and Female Employment Probability: The Cases of Barcelona and Madrid," Urban Studies, Urban Studies Journal Limited, vol. 47(4), pages 769-787, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:52:y:2015:i:1:p:87-102. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.