Poverty Regulation and Poverty Dynamics: A Textual and Econometric Analysis

This article aims to identify and quantify regulations designed to combat poverty, and to assess their effectiveness. Using textual analysis techniques, we systematically classify and quantify, for the first time, all measures adopted in Spain among the 175,204 regulations issued by the Central Administration and the Autonomous Regions between 2007 and 2021. At both levels of government, we distinguish between targeted poverty-related regulations, such as those addressing energy poverty or child poverty, and broader poverty-related regulations, including those focused on precariousness, social assistance, or social exclusion. Furthermore, through multivariate regression analysis, we evaluate whether these regulatory frameworks have had a significant impact on regional risk-of-poverty rates. Our findings indicate that the effectiveness of both targeted and general regulatory measures depends on the level of government responsible for their implementation. Specifically, targeted measures are effective in reducing poverty risk when enacted at the regional level, but not when implemented by the central government. In contrast, broader regulatory measures prove to be effective tools for mitigating poverty when adopted at the national level, rather than by regional authorities. This study contributes to enhancing public sector accountability in Spain and provides valuable insights for refining future policymaking to achieve greater social impact.