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On the spread of social protection systems

Author

Listed:
  • Peter Egger

    () (ETH Zurich
    CEPR
    CESifo
    WIFO)

  • Doina Radulescu

    () (CESifo
    University of Bern)

  • Nora Strecker

    () (ETH Zurich)

Abstract

Abstract This paper undertakes an empirical analysis of the adoption of contributory social security systems and effective and specific contribution rates. Conditional on country-(time-)specific economic determinants of the setting of these components, the empirical analysis focuses on the role of contagion for policy adoption. Specifically, the paper assesses to which extent a country’s integration into the international network of economic and political cooperation, the similarity of political systems, and economic interdependence facilitate the adoption of a social security system, its components, and its contributions across economies. The findings suggest that proximity through common policy, geographical neighborhood, and common culture is important for the diffusion of any type of social security scheme among proximate countries. Further, contagion matters for the adoption probability of specific contribution systems as such, as well as for the setting of contribution rates for both employers and employees.

Suggested Citation

  • Peter Egger & Doina Radulescu & Nora Strecker, 2017. "On the spread of social protection systems," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(4), pages 550-574, August.
  • Handle: RePEc:kap:itaxpf:v:24:y:2017:i:4:d:10.1007_s10797-017-9464-1
    DOI: 10.1007/s10797-017-9464-1
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Syed Mansoob Murshed & Muhammad Badiuzzaman & Mohammad Habibullah Pulok, 2017. "Fiscal capacity and social protection expenditure in developing nations," WIDER Working Paper Series 060, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Social security systems; Taxation; International comparisons; Panel data analysis;

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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