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The Impact of Social Security on Household Welfare: Evidence from a Transition Country

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  • Nguyen Viet, Cuong

Abstract

Although there is no doubt that social security can help poverty reduction, their effect on poverty reduction can vary for different situations. This paper uses fixed-effects regression to estimate the effects of social security transfers including contributory pensions and social allowances on consumption expenditure of receiving households, and subsequently investigates the impact of the social security transfers on poverty in Vietnam. It is found that both pensions and social allowances increase expenditure of households, especially expenditure on non-food consumption. Pensions have a higher effect on expenditure than social allowances. Pensions and social allowances reduce poverty of the recipients as well as the whole population.

Suggested Citation

  • Nguyen Viet, Cuong, 2010. "The Impact of Social Security on Household Welfare: Evidence from a Transition Country," MPRA Paper 40777, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:40777
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    References listed on IDEAS

    as
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    4. Behrman, Jere R. & Hoddinott, John F., 2001. "An evaluation of the impact of PROGRESA on preschool child height," FCND briefs 104, International Food Policy Research Institute (IFPRI).
    5. Stephen Devereux, 2002. "Can Social Safety Nets Reduce Chronic Poverty?," Development Policy Review, Overseas Development Institute, vol. 20(5), pages 657-675, November.
    6. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097, Elsevier.
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    8. Van de Walle, Dominique, 2002. "The static and dynamic incidence of Vietnam's public safety net," Policy Research Working Paper Series 2791, The World Bank.
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    Keywords

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    JEL classification:

    • 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
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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