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The Impact of Public Services Expenditure on the Spanish Income Distribution

Author

Listed:
  • Antonio Jurado

    (Universidad de Extremadura)

  • Jesus Perez-Mayo

    (Universidad de Extremadura)

  • Francisco Pedraja

    (Universidad de Extremadura)

Abstract

This paper performs an assessment and imputation of the benefits produced to the individuals and households well-being by the public services provision. This analysis is very relevant in the current framework of economic crisis of the European economies. Although most of the papers in the literature compare countries, decentralization processes are included in this paper by accounting the effect of public expenditure on regional health care and education upon the levels of inequality and rates of poverty in each Spanish region. This case is relevant because of the high decentralization degree of the Spanish political structure and the persistent regional disparities. The results show a clear downward tendency in both phenomena following imputation, although education shows a greater impact. Furthermore, a decomposition, used in this context for the first time, of the effects shows the very relevant redistributive effect of this public expenditure.

Suggested Citation

  • Antonio Jurado & Jesus Perez-Mayo & Francisco Pedraja, 2016. "The Impact of Public Services Expenditure on the Spanish Income Distribution," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(1), pages 217-241, May.
    • Handle: RePEc:spr:soinre:v:127:y:2016:i:1:d:10.1007_s11205-015-0957-y
    DOI: 10.1007/s11205-015-0957-y
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    References listed on IDEAS

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    1. Rolf Aaberge & Audun Langørgen, 2006. "Measuring The Benefits From Public Services: The Effects Of Local Government Spending On The Distribution Of Income In Norway," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(1), pages 61-83, March.
    2. Irwin Garfinkel & Lee Rainwater & Timothy M. Smeeding, 2006. "A re-examination of welfare states and inequality in rich nations: How in-kind transfers and indirect taxes change the story," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 25(4), pages 897-919.
    3. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    4. Gerlinde Verbist & Michael Förster & Maria Vaalavuo, 2012. "The Impact of Publicly Provided Services on the Distribution of Resources: Review of New Results and Methods," OECD Social, Employment and Migration Working Papers 130, OECD Publishing.
    5. Alari Paulus & Holly Sutherland & Panos Tsakloglou, 2010. "The distributional impact of in-kind public benefits in European countries," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 243-266.
    6. Calonge Ramírez Samuel & Manresa Sánchez Antonio, 2001. "Incidencia fiscal y del gasto público social sobre la distribución de la renta en España y sus CC. AA," Books, Fundacion BBVA / BBVA Foundation, edition 1, number 201117, October.
    7. Joan Costa-Font & Ana Rico, 2006. "Devolution and the Interregional Inequalities in Health and Healthcare in Spain," Regional Studies, Taylor & Francis Journals, vol. 40(8), pages 875-887.
    8. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
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    Cited by:

    1. Irene Cussó-Parcerisas & Elena Carrillo Álvarez & Jordi Riera-Romaní, 2018. "What is the Minimum Budget for an Adequate Social Participation in Spain? An Estimate Through the Reference Budgets Approach," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 11(1), pages 263-290, February.

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    More about this item

    Keywords

    Well-being; Poverty; Income distribution; In-kind benefits; Inequality; Public services;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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