Convergence in social protection across EU countries, 1970-1999
This paper has examined the degree of convergence in social protection registered in the European Union (EU) during the 1970-1999 period. To that end, we study the long-run properties of time series of social protection benefits, applying unit root tests that allow for endogenously determined changes in the deterministic trends to data from Eurostat for the 12 member countries that formed the EU before the enlargement to Austria, Finland and Sweden. Our results suggest that there is no evidence of long-run or strong convergence (neither with respect to Germany nor with respect to the EU12 average) in Social Protection expenditure to GDP ratios, that would imply equalisation of the latter. However we do find evidence of catching-up or weak convergence with respect to both Germany (as a bench-mark) and the EU12 average for all countries, except Greece. These results, in turn, suggest that some countries have been carrying out a stronger effort, as far as social protection is concerned, what has resulted in their situation converging with that of other countries where social protection expenditure has been much more significant all through the period. This effort can contribute to facilitate factor mobility within Europe and, as we have argued somewhere else, may have implications for the speed of growth in member states and the EU at large.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jose Herce & Simon Sosvilla-Rivero & Juan Jose De Lucio, 2000.
"Social protection benefits and growth: evidence from the European Union,"
Applied Economics Letters,
Taylor & Francis Journals, vol. 7(6), pages 397-400.
- Jose Herce & Simon Sosvilla-Rivero & Juan Jose de Lucio, 2000. "Social protection benefits and growth: evidence from the European Union," Applied Economics Letters, Taylor & Francis Journals, vol. 7(4), pages 255-258.
- José A. Herce & Simón Sosvilla-Rivero & Juan J. De Lucio, "undated". "Social protection benefits and growth: Evidence from the European Union," Working Papers 98-01, FEDEA.
- Bernard, Andrew B. & Durlauf, Steven N., 1996. "Interpreting tests of the convergence hypothesis," Journal of Econometrics, Elsevier, vol. 71(1-2), pages 161-173.
- Bernard, A.B. & Durlauf, S.N., 1994. "Interpreting Tests of the Convergence Hypothesis," Working papers 9401r, Wisconsin Madison - Social Systems.
- Andrew B. Bernard & Steven N. Durlauf, 1994. "Interpreting Tests of the Convergence Hypothesis," NBER Technical Working Papers 0159, National Bureau of Economic Research, Inc.
- Javier Alonso & Miguel-Angel Galindo & Simon Sosvilla-Rivero, 1998. "Convergence in social protection benefits across EU countries," Applied Economics Letters, Taylor & Francis Journals, vol. 5(3), pages 153-155.
- Javier Alonso & Miguel Angel Galindo & Simón Sosvilla-Rivero, "undated". "Convergence in social protection benefits across EU countries," Working Papers 97-03, FEDEA.
- Herce, Jose A & Sosvilla-Rivero, Simon & de Lucio, Juan Jose, 2001. "Growth and the Welfare State in the EU: A Causality Analysis," Public Choice, Springer, vol. 109(1-2), pages 55-68, October.
- José A. Herce & Simón Sosvilla-Rivero & Juan J. De Lucio, "undated". "Growth and the Welfare State in the EU: A causality analysis," Working Papers 98-12, FEDEA.
- Bajo-Rubio, Oscar & Sosvilla-Rivero, Simon & Fernandez-Rodriguez, Fernando, 2001. "Asymmetry in the EMS: New evidence based on non-linear forecasts," European Economic Review, Elsevier, vol. 45(3), pages 451-473, March.
- Oscar Bajo-Rubio & Simón Sosvilla-Rivero & Fernado Fernández-Rodríguez, "undated". "Asymmetry in the EMS: New evidence based on non-linear forecasts," Working Papers 97-24, FEDEA.
- Óscar Bajo Rubio & Simón Sosvilla Rivero & Fernando Fernández Rodríguez, 2000. "Asymmetry In The Ems: New Evidence Based On Non-Linear Forecasts," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 0001, Departamento de Economía - Universidad Pública de Navarra.
- Bernard, Andrew B & Durlauf, Steven N, 1995. "Convergence in International Output," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(2), pages 97-108, April-Jun.
- Bernard, A.B. & Durlauf, S.N., 1993. "Convergence in International Output," Working papers 93-7, Massachusetts Institute of Technology (MIT), Department of Economics.
- Perron, Pierre, 1989. "The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis," Econometrica, Econometric Society, vol. 57(6), pages 1361-1401, November.
- Perron, P, 1988. "The Great Crash, The Oil Price Shock And The Unit Root Hypothesis," Papers 338, Princeton, Department of Economics - Econometric Research Program.
- Nelson, Charles R. & Plosser, Charles I., 1982. "Trends and random walks in macroeconmic time series : Some evidence and implications," Journal of Monetary Economics, Elsevier, vol. 10(2), pages 139-162.
- Oxley, Les & Greasley, David, 1995. "A Time-Series Perspective on Convergence: Australia, UK and USA since 1870," The Economic Record, The Economic Society of Australia, vol. 71(214), pages 259-270, September. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:fda:fdaddt:2003-01. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carmen Arias)
If references are entirely missing, you can add them using this form.