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The relationship between different social expenditure schemes and poverty, inequality and economic growth

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  • Emile Cammeraat

Abstract

In this article, we study how social expenditure is related to poverty, income inequality and GDP growth. Our main contribution is to disentangle these relationships by the following social expenditure schemes: 1) “old age and survivors”, 2) “incapacity”, 3) “health”, 4) “family”, 5) “unemployment and active labour market policies” and 6) “housing and others”. For this purpose, we employ OLS and 2SLS regression models using a panel data set for 22 Member States of the European Union from 1990 until 2015. We find total public social expenditure to be negatively related to poverty and inequality, but not related to GDP growth. The results vary substantially between the different social expenditure schemes, which makes more accurate targeting possible. Dans cet article, nous étudions le lien entre, d'une part, les dépenses sociales, et d’autre part, la pauvreté, les inégalités de revenus et la croissance du PIB. Notre principale contribution consiste à dissocier ces relations en distinguant les régimes de dépenses sociales suivants : 1) personnes âgées et survivants, 2) incapacité, 3) santé, 4) famille, 5) politiques du marché du travail en faveur de l’emploi et de lutte contre le chômage, et 6) logements et autres. A cet effet, nous utilisons les modèles de régression OLS et 2SLS en nous basant sur un ensemble de données de panel pour les 22 Etats membres de l’Union européenne de 1990 à 2015. Nous constatons que les dépenses sociales publiques totales sont en corrélation négative avec la pauvreté et les inégalités, mais ne sont pas corrélées à la croissance du PIB. Les résultats varient considérablement entre les différents régimes de dépenses sociales, ce qui permet un ciblage plus précis. En este artículo estudiamos la relación entre el gasto social y la pobreza, la desigualdad de ingresos y el crecimiento del PIB. Nuestro principal objetivo es desentrañar estas relaciones en los siguientes regímenes sociales: 1) vejez y sobrevivientes; 2) discapacidad; 3) salud; 4) familia; 5) desempleo y políticas activas del mercado de trabajo; 6)vivienda y otros. A tal efecto, aplicamos modelos de regresión OLS y 2SLS utilizando una serie de datos de panel de 22 Estados miembros de la Unión Europea desde 1990 hasta 2015. Concluimos que el gasto social público total es inversamente proporcional a la pobreza y la desigualdad, pero no al crecimiento del PIB. Los resultados varían sustancialmente entre los diferentes regímenes sociales, lo que permite establecer objetivos de modo más preciso. In diesem Artikel untersuchen wir, in welchem Zusammenhang Sozialausgaben mit Armut, Einkommensungleichheit und BIP‐Wachstum stehen. Unser Beitrag besteht vor allem darin, dass wir diesen Beziehungen in folgenden Sozialausgabensystemen auf den Grund gehen: 1) Alters‐ und Hinterbliebenenrenten, 2) Invalidität, 3) Gesundheitsversorgung, 4) Familienleistungen, 5) Arbeitslosigkeit und aktive Arbeitsmarktpolitik und 6) Wohnraum und andere. Zu diesem Zweck setzen wir OLS‐ und 2SLS‐Regressionsmodelle ein, die Umfragedaten von 22 Mitgliedstaaten der Europäischen Union für die Jahre 1990 bis 2015 verwenden. Wir stellen fest, dass die staatlichen Gesamtsozialausgaben negativ mit Armut und Ungleichheit korrelieren, jedoch in keinem Zusammenhang mit dem BIP‐Wachstum stehen. Die Ergebnisse variieren erheblich zwischen den verschiedenen Sozialausgabensystemen, was eine genauere Zielgruppenausrichtung ermöglicht. В этой статье рассматривается связь между социальными расходами и уровнем бедности, неравенством доходов, а также ростом ВВП. Нашим главным вкладом является анализ этой взаимосвязи исходя из следующих характеристик, связанных с расходами по социальным программам: 1) люди старшего возраста и пострадавшие, 2) недееспособное население, 3) состояние здоровья, 4) семьи, 5) безработица и политика активного рынка труда, 6) обеспечение жильем и другое. В целях анализа использовано регрессионные модели МНК и ДМНК, а также панельные данные 22 стран Европейского Союза за 1990‐2015гг. Мы выяснили, что общие государственные социальные расходы находятся в отрицательной связи с бедностью и неравенством, однако не имеют связи с ростом ВВП. Результаты значительно разнятся для разных программ социальных расходов, что наводит на мысль о необходимости более целенаправленного анализа. 在本文中, 我们研究了社会支出与贫穷、收入不平等以及国内生产总值增长有何关系。我们主要的贡献是根据以下社会支出计划解开这些关系:1)老年与遗嘱、2)残疾、3)健康、4)家庭、5)失业与积极劳动市场政策以及6)住屋与其他。为此目的, 我们采用了普通最小二乘法与两阶段最小二乘法回归模型, 分析了22个欧洲联盟成员国1990至2015年的面板数据。我们发现公共社会支出与贫穷和不平等之间为负相关, 与国内生产总值增长则不相关。各个社会支出计划的结果差异极大, 使我们得以进行更精确的定位。 درسنا في هذا المقال كيف أن النفقات الاجتماعية مرتبطة بالفقر وتفاوت الأجور ونمو الناتج الإجمالي المحلي. وتتمثل مساهمتنا الأساسية في تحليل مفصل طريقه لهذه العلاقات من خلال خطط الانفاق الاجتماعية التالية: 1) المسنون والباقون على قيد الحياة، 2) العجز، 3) الصحة، 4) الأسرة، 5) البطالة وسياسات سوق العمل النشطة، 6) الإسكان وغيرها من المسائل. ولهذا الغرض، استخدمنا تحليل انحدار القيمة الدنيا لمجموع المربعات OLSلمجموع المربعات وانحدار القيمة الدنيا المزدوج 2SLS ولوحة البيانات المجمعة من 22 دولة عضو في الاتحاد الأوروبي من 1990 وحتى 2015. واكتشفنا أن إجمالي النفقات الاجتماعية العامة يرتبط سلباً بالفقر وانعدام المساواة، ولكن لا يرتبط بنمو الناتج الإجمالي المحلي. وتتباين النتائج بشكل كبير بين مختلف خطط النفقات الاجتماعية، مما يجعل من الاستهداف الدقيق أمراً ممكناً. Neste artigo, estudamos como os gastos sociais estão relacionados com a pobreza, a desigualdade de renda e o crescimento do PIB. Nossa principal contribuição é destrinchar essas relações a partir dos seguintes regimes de gastos sociais: 1) velhice e sobrevivência, 2) invalidez, 3) saúde, 4) família, 5) desemprego e políticas ativas do mercado de trabalho e 6) habitação e outros. Para esse fim, usamos os modelos de regressão MQO (em inglês, OLS) e de mínimos quadrados em dois estágios (em inglês, 2SLS) com uma série de dados em painel de 22 Estados‐membros da União Europeia de 1990 a 2015. Constatamos que o gasto social público está negativamente correlacionado com a pobreza e a desigualdade, mas não relacionado ao crescimento do PIB. Os resultados variam substancialmente entre os diversos regimes de gasto social, o que torna possível uma segmentação mais precisa.

Suggested Citation

  • Emile Cammeraat, 2020. "The relationship between different social expenditure schemes and poverty, inequality and economic growth," International Social Security Review, John Wiley & Sons, vol. 73(2), pages 101-123, April.
  • Handle: RePEc:wly:intssr:v:73:y:2020:i:2:p:101-123
    DOI: 10.1111/issr.12236
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    2. Andi Faisal Anwar & Angelina Putri Asnun & Abdul Wahab, 2021. "Measuring the Impact of Inclusive Economic Growth; Empirical Study of SDGs in Indonesia," Technium Social Sciences Journal, Technium Science, vol. 25(1), pages 192-218, November.
    3. Popova, Daria, 2023. "Impact of equity in social protection spending on income poverty and inequality," Centre for Microsimulation and Policy Analysis Working Paper Series CEMPA10/23, Centre for Microsimulation and Policy Analysis at the Institute for Social and Economic Research.
    4. Marcelo Santos & Marta Simões, 2021. "Globalisation, Welfare Models and Social Expenditure in OECD Countries," Open Economies Review, Springer, vol. 32(5), pages 1063-1088, November.
    5. Canale, Rosaria Rita & Liotti, Giorgio & Musella, Marco, 2022. "Labour market flexibility and workers’ living conditions in Europe," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 441-450.
    6. repec:thr:techub:10025:y:2021:i:1:p:192-218 is not listed on IDEAS
    7. Ivana Velkovska & Borce Trenovski, 2023. "Economic growth or social expenditure: what is more effective in decreasing poverty and income inequality in the EU - a panel VAR approach," Public Sector Economics, Institute of Public Finance, vol. 47(1), pages 111-142.
    8. Mohamed Ben Mimoun & Asma Raies, 2022. "Is social spending pro‐poor in developing countries? The role of governance and political freedom," Poverty & Public Policy, John Wiley & Sons, vol. 14(3), pages 214-241, September.
    9. Daria Popova, 2023. "Impact of Equity in Social Protection Spending on Income Poverty and Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 697-721, September.
    10. Alina Klonowska & Barbara Pawełek, 2022. "What we know and what we do not know about social security finance and macroeconomic stabilization? Evidence from EU countries," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 4, pages 455-483.

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