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The redistributive impact of public and private social expenditure

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  • Goudswaard, Kees
  • Caminada, Koen

Abstract

Most analyses of social protection are focussed on public arrangements. However, social effort is not restricted to the public domain; all kinds of private arrangements can be substitutes to public programs. In fact, in several countries there has been a shift from public towards private social arrangements. OECD-data indicate that accounting for private social benefits has an equalising effect on levels of social effort across a number of countries. This suggests that public and private social expenditures are complementary to some extent. But their distributional effects differ. In all OECD countries, the social protection system causes a more equal distribution of incomes. Indeed, using cross-country data, we find a negative relationship between public social expenditures and income inequality and a positive relationship between public social expenditure and income redistribution. But we do not find a significant positive relationship between private social expenditures and income inequality or income redistribution. Consequently, changes in the public/private-mix in the provision of social protection may affect the redistributive impact of the welfare state.

Suggested Citation

  • Goudswaard, Kees & Caminada, Koen, 2008. "The redistributive impact of public and private social expenditure," MPRA Paper 20178, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:20178
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Medeiros, Marcelo & Souza, Pedro H.G.F., 2013. "The State and income inequality in Brazil," Institute for Research on Labor and Employment, Working Paper Series qt584222f0, Institute of Industrial Relations, UC Berkeley.
    3. Khalid Zaman & Bashir Khilji, 2014. "A note on pro-poor social expenditures," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(4), pages 2121-2154, July.
    4. Arjan de Haan, 2013. "The Social Policies of Emerging Economies: Growth and Welfare in China and India," Working Papers 110, International Policy Centre for Inclusive Growth.
    5. repec:ces:ifodic:v:10:y:2012:i:4:p:19074538 is not listed on IDEAS
    6. Kees Goudswaard & Olaf van Vliet & Jim Been & Koen Caminada, 2012. "Pensions and Income Inequality in Old Age," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 10(4), pages 21-26, December.
    7. Wiemer Salverda & Christina Haas & Marloes Graaf-zijl & Bram Lancee & Natascha Notten & Tahnee Ooms, 2013. "GINI Country Report: Growing Inequalities and their Impacts in the Netherlands," GINI Country Reports netherlands, AIAS, Amsterdam Institute for Advanced Labour Studies.
    8. Van Vliet, Olaf & Been, Jim & Caminada, Koen & Goudswaard, Kees, 2011. "Pension reform and income inequality among the elderly in 15 European countries," MPRA Paper 32940, University Library of Munich, Germany.

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    More about this item

    Keywords

    Social Protection; Private Social Expenditure; Income Distribution;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • D3 - Microeconomics - - Distribution

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