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When is social protection productivity-enhancing? Costs and benefits on economic performances

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  • Tomassi, Federico

Abstract

This work aims to contribute to the contingency view of the relationships between social protection and economic performances, by exploring under what conditions social expenditure is productivity-enhancing or not. Well-designed welfare states and fit socio-economic contexts can yield direct and positive relationships between equality and efficiency. Social expenditure plays a twofold role: short-term financial cost notably in traditional economic sectors, and long-term social investment especially in innovative sectors. Some structural variables matters: distance from the world technological frontier, share of productive expenditure, effectiveness of social expenditure, degree of economic and financial globalisation, discount rate of expected future benefits.

Suggested Citation

  • Tomassi, Federico, 2010. "When is social protection productivity-enhancing? Costs and benefits on economic performances," MPRA Paper 44381, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:44381
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    File URL: https://mpra.ub.uni-muenchen.de/44381/1/MPRA_paper_44381.pdf
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    References listed on IDEAS

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    Cited by:

    1. Barrientos, Armando & Amann, Ed, 2014. "Is there a Brazilian model of development? Are there lessons for countries in Africa?," WIDER Working Paper Series 134, World Institute for Development Economic Research (UNU-WIDER).
    2. Elvis Oltean & Fedor Kusmartsev, 2014. "A study of Methods from Statistical Mechanics applied to income distribution," Papers 1410.3128, arXiv.org, revised Mar 2016.
    3. Edmund Amann & Armando Barrientos, 2014. "Is There a Brazilian Model of Development?: Are There Lessons for Countries in Africa?," WIDER Working Paper Series wp-2014-134, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    Social expenditure; Social spending; Productivity; Welfare state; Oecd countries;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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