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Article
Publication date: 27 September 2011

Lucas Duarte, Enlinson Mattos and Juliana Serillo

The purpose of this paper is to characterize that the marginal social cost of public funds and to estimate the response of labor supply to these publicly provided goods, and…

Abstract

Purpose

The purpose of this paper is to characterize that the marginal social cost of public funds and to estimate the response of labor supply to these publicly provided goods, and simulate the marginal social cost of cash‐cum‐in‐kind transfers (MSCKT) for Brazil.

Design/methodology/approach

The paper provides a theoretical model based on Wildasin to characterize the marginal social cost of public funds. Next it estimates using instrumental variables approach the variables necessary to calibrate our theoretical model.

Findings

The marginal social cost of public funds depends on the relation between labor supply and the cash‐cum‐in‐kind transfers. Last, the simulations suggest that MSCKT can increase up to 12.4 percent if compared with cases in which is assumed ordinary independence between labor and the bundle of goods provided by the public sector.

Research limitations/implications

Further panel data experiments based on municipal public finance data should be conducted in order to circumvent the agents' heterogeneity problem inherent in cross section analysis – and individuals' labor supply response could be more sensitive at this data level. Finally, such cost‐benefit analysis makes more sense when a specific project is considered and therefore its effects on the taxed good can be clearly estimated leading to a more reliable estimative of the marginal social cost of funding that project.

Social implications

Governments should take the actual social cost of public policies into consideration before undertaking any new project.

Originality/value

The paper is useful to characterize the marginal social cost of public funds, estimate the necessary parameters and, last, to calibrate its correspondent using Brazilian data.

Details

Journal of Economic Studies, vol. 38 no. 5
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 8 March 2013

Christos Koutsampelas and Panos Tsakloglou

The purpose of this paper is to examine the distributional implications of using full income instead of disposable income in the analysis of economic inequality. For that purpose…

3304

Abstract

Purpose

The purpose of this paper is to examine the distributional implications of using full income instead of disposable income in the analysis of economic inequality. For that purpose the authors employ a very extensive list of noncash incomes with the aim of examining the distributional effects of noncash incomes and reassessing the level and structure of inequality under a comprehensive definition of income.

Design/methodology/approach

The study employs the microdata of the 2004/2005 Greek Household Budget Survey. The value of non‐monetary components was estimated using the appropriate statistical methods and econometric techniques. Tools of income distribution analysis were utilized for assessing the distributional consequences of adopting an extended definition of income.

Findings

The results indicate that both private and public noncash incomes are far more equally distributed than monetary income, but the inequality‐reducing effect of publicly‐provided services is stronger. Noncash incomes appear to accrue more heavily to younger and older individuals.

Research limitations/implications

The analysis uses the same equivalence scales for the analysis of both monetary income and full income. This treatment may be open to criticism in the case of in‐kind public transfers. Due to data limitations the authors do not take into account home‐produced services, as well as several in‐kind transfers such as the provision of elderly care.

Practical implications

The study argues in favor of moving beyond disposable income for measuring inequality and for the purposes of social policy design.

Originality/value

Even if several studies take into account particular noncash items, there is an important void in the distributional analysis of full income.

Details

International Journal of Social Economics, vol. 40 no. 4
Type: Research Article
ISSN: 0306-8293

Keywords

Book part
Publication date: 4 December 2020

Tanja Istenič, Jože Sambt and Daša Farčnik

European Union (EU) member states are dedicated to a set of sustainable development goals, among them to: (1) promote well-being for all at all the ages and (2) achieve gender…

Abstract

European Union (EU) member states are dedicated to a set of sustainable development goals, among them to: (1) promote well-being for all at all the ages and (2) achieve gender equality. This chapter uses the National Transfer Accounts (NTA) methodology that enables comprehensive measurement of intergenerational transfers, both public and private, and differences in the gender equality promotion among the countries. Our analysis is based on the fully comparable NTA results for 25 EU countries from 2010. The authors perform cluster analysis based on five indicators, measuring the importance of different types of age reallocations and the differences in gender equality promotion among the EU countries. Since the economic life cycle (showing the level of dependency) and its financing strongly depend on country-specific institutional and cultural settings, the authors link their results with the typical welfare regimes’ typology. The authors end up with three different groups of countries showing a clear north–south division of countries.

Details

Challenges on the Path Toward Sustainability in Europe
Type: Book
ISBN: 978-1-80043-972-6

Keywords

Book part
Publication date: 23 February 2022

Bent Greve and Daniel Béland

As elsewhere, inequality has increasingly been on the agenda in recent years in Denmark, which has led to discussion about the redistributive role of welfare states across…

Abstract

As elsewhere, inequality has increasingly been on the agenda in recent years in Denmark, which has led to discussion about the redistributive role of welfare states across existing welfare regimes. Perhaps surprisingly, the Danish debate on inequality has revolved more specifically around how the country's tax system influences labour supply, especially the high level of marginal income taxation. The debate on poverty and inequality has become more prominent in Denmark in recent years, with a focus on the living standards of pensioners and children as well as the dynamic relationship between inequality and social policy. Thus, if there is a willingness to reduce inequality, a central challenge is to determine which instruments are available to counter rising inequalities in Denmark. In this context, the interaction between the issue of poverty and political support for specific social policies in Denmark is a challenge. Overall, the analysis suggests that tax reforms focusing on labour market supply have helped increase inequalities, thus indicating a possible trade-off between different aspects of welfare state development. Furthermore, the universality of the Danish model might be questioned in the coming years, which might also imply a debate on the generosity of a number of social security benefits, including those targeting the unemployed.

Details

Public Governance in Denmark
Type: Book
ISBN: 978-1-80043-712-8

Keywords

Article
Publication date: 25 February 2020

Sena Kimm Gnangnon

This study investigates empirically the impact of export product concentration (or diversification) on social protection expenditure in both developed and developing countries…

Abstract

Purpose

This study investigates empirically the impact of export product concentration (or diversification) on social protection expenditure in both developed and developing countries. The analysis further explores whether this effect depends on countries' degree of openness to international trade.

Design/methodology/approach

The analysis has relied on an unbalanced panel data set comprising 112 countries over the period 1980–2010 and used the two-step system generalized methods of moments (GMM) estimator as the econometric approach.

Findings

The empirical analysis conveys two messages. First, low-income countries experience a positive effect of export product concentration on social protection expenditure, while for relatively advanced economies, export product diversification positively influences social protection expenditure. Second, countries that further open up their economies to international trade experience a positive effect of export product diversification on social protection expenditure, with the magnitude of this impact increasing as the degree of openness rises.

Research limitations/implications

These findings highlight the relevance of export product diversification for social protection expenditure in both developed and developing countries, notably in the context of greater trade openness.

Practical implications

The diversification of export products is one means for developed and developing countries alike to increase the scope for social protection expenditure.

Originality/value

To the best of the authors' knowledge, this topic had not been addressed.

Details

Journal of Economic Studies, vol. 47 no. 3
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 2 April 2024

Sibananda Senapati

This study aims to understand the socioeconomic impact of flood events on households, especially household welfare in terms of changes in consumption and coping strategies to deal…

Abstract

Purpose

This study aims to understand the socioeconomic impact of flood events on households, especially household welfare in terms of changes in consumption and coping strategies to deal with flood risk. This study is based on Bihar, one of the most frequently flood-affected, most populous and economically backward states in India.

Design/methodology/approach

Primary data were collected from 700 households in the seven most frequently flood-affected districts in Bihar. A total of 100 individuals from each district were randomly selected from flood-affected villages. Based on a detailed literature review, an econometric (probit) model was developed to test the null hypothesis of the availability of consumption insurance, and the multivariate probability approach was used to analyze the various coping strategies of these households.

Findings

The results of this study suggest that flood-affected households maintain their consumption by overcoming various losses, including income, house damage and livestock loss. Households depend on financial transfers, borrowings and relief, and migrate to overcome losses. Borrowing could be an extra burden as the government compensates for house damage and crop loss late to the affected households. Again, there is no compensation to overcome livelihood loss and deal with occurrences of post-flood diseases, which further emphasizes the policy implications of strengthening the health infrastructure in the state and generating alternative livelihood opportunities.

Originality/value

This study discusses flood risk in terms of changes in household welfare, identifies the most effective risk-coping capabilities of rural communities and contributes to the shortcomings of the government insurance and relief model.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-07-2023-0569

Details

International Journal of Social Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 1 November 2023

Aurolipsa Das and Narayan Sethi

Since the last decade, debates regarding the efficiency and effectiveness of the forms of transfer, i.e. in the form of in-kind or cash transfers, have been gaining momentum. This…

Abstract

Purpose

Since the last decade, debates regarding the efficiency and effectiveness of the forms of transfer, i.e. in the form of in-kind or cash transfers, have been gaining momentum. This paper aims to explore the preferences revealed by the beneficiaries, the role of contextual conditions in moulding these preferences, factors associated with the transfer scheme that defines the preferences and the rationale behind such responses.

Design/methodology/approach

The study conducted involves primary data collected from an Indian state, Odisha. 308 beneficiaries of the Targeted Public Distribution System (TPDS) were interviewed concerning specific objectives in a rural district (Mayurbhanj) and another highly urbanised district (Khordha).

Findings

The comparative results show that the strength of the contextual conditions significantly influences the preferences of the beneficiaries in the rural district as compared to the effect on the beneficiaries of the urban district. Education seems to have an insignificant impact in rural areas. However, income and standard of living have positive significant effects on shaping the preferences for cash or in-kind transfers.

Originality/value

Examining the strength of the contextual conditions and emphasising beneficiaries' perspectives would stimulate a better understanding of the implementation of the proposed quasi-Universal Basic Income. The study would hence, be instrumental in dealing with the transition towards cash transfers in the Indian context where the co-responsibility of both stakeholders, the government and the beneficiaries, should be given equal weightage.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2023-0158

Details

International Journal of Social Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0306-8293

Keywords

Book part
Publication date: 16 September 2019

Gerlinde Verbist and Michael Förster

This chapter discusses the major steps and issues related to the inclusion of public services in inequality research. Empirically, it investigates how the income distribution in…

Abstract

This chapter discusses the major steps and issues related to the inclusion of public services in inequality research. Empirically, it investigates how the income distribution in countries changes when the value of publicly provided services to households is included. The authors consider five major categories of public services: education, health care, social housing, childcare and elderly care. On average across OECD countries, spending on these ‘in-kind’ benefits accounts for about 13% of GDP, slightly more than the spending on cash transfers – but with considerable cross-country variation. Broadening the income concept to account for in-kind benefits considerably increases households’ economic resources. But public services also contribute to reducing income inequality, by between one-fifth and one-third depending on the inequality measure. This chapter suggests that publicly provided services fulfil an important direct redistributive role in OECD countries.

Details

What Drives Inequality?
Type: Book
ISBN: 978-1-78973-377-8

Keywords

Article
Publication date: 3 June 2014

Christos Papatheodorou and Dimitris Pavlopoulos

The purpose of this paper is to analyse the structure of overall inequality in the EU-15 by investigating the extent to which total inequality is attributed to inequality between…

Abstract

Purpose

The purpose of this paper is to analyse the structure of overall inequality in the EU-15 by investigating the extent to which total inequality is attributed to inequality between or within the individual countries. Also, the paper examines whether the contribution of between-country and within-country components changed in the period between 1996 to 2008, before the outbreak of the economic crisis.

Design/methodology/approach

The paper applies a decomposition analysis by population subgroup utilizing micro-data from the ECHP and EU-SILC surveys. A number of inequality indices are employed to capture the different aspects of inequality and test the robustness of the results.

Findings

The analysis shows that the between-countries differences account only for a small part of overall inequality in the EU-15. Furthermore, the contribution of the between county component to total inequality has shrunk dramatically during the examined period. The overall EU inequality has been affected disproportionally by income disparities at the various parts of the income distribution in different countries.

Practical implications

Policies aiming to reduce inequality within each country would be far more effective in reducing overall inequality in the EU than policies targeting to reduce only disparities between member states.

Originality/value

The findings question the effectiveness of EU policy priorities to decrease inequality that have mainly focused on reducing cross-country and/or regions differences regarding certain macroeconomic indicators such as per-capita income (or GDP). The evidence suggests that the social protection system provides a useful tool in explaining the differences in inequality between countries and their contribution to overall EU inequality.

Details

International Journal of Social Economics, vol. 41 no. 6
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 19 January 2023

Orly Benjamin, Karni Krigel, Nir Cohen and Anat Tchetchik

Welfare reforms introduced conditionality into cash transfers often by diverse welfare-to-work programs achieving its vast legitimization. Meanwhile in-kind poverty alleviation…

Abstract

Purpose

Welfare reforms introduced conditionality into cash transfers often by diverse welfare-to-work programs achieving its vast legitimization. Meanwhile in-kind poverty alleviation policies maintained their universal character in the forms of national budgeting of municipal services. Utilizing justification work, the authors aim at showing how conditionality of in-kind support is replacing universalism. The authors ask which justification work assist administrators in shaping the relationship between in-kind and cash transfer and the changing meanings of poverty alleviation practices.

Design/methodology/approach

The authors conducted 20 semi-structured interviews with senior administrators in Israeli local governments analysing them along principles of critical discourse analysis (Fairclough, 2010). Further, seeking to elicit the justification work, the authors added some guidelines from the discourse interaction approach.

Findings

The findings identified administrators' justification work as taking two major shapes. The first is an emphasis on conditionality in their in-kind support projects, which is limited in time, contingent upon co-operation and sometimes even enhancing choice for those in need. The second is the manifestation of pride anchored in the skilful budget management enabling the achievement of conditional in-kind support projects based on the effort involved.

Research limitations/implications

The authors did not prompt the interviewees for the proportions of specific categories, such as whether they are attending and benefitting of the in-kind support programs. This is a limitation of this study that prevented the authors from contrasting perceived achievements against the actual coverage of their projects.

Practical implications

It is important that government funding is increased for municipal anti-poverty policies engaging municipal administrator in the struggle for full and better coverage so that capability deprivation is combatted by a combination of cash transfer and quality social services that are universal and at the same time secure mentoring and supervision to all households in need.

Social implications

Future research should present the analysis that associates different budgets of each city with its anti-poverty polices and its different socio-economic ranking. Critical social-policy scholars may apply this study’s findings in future analyses of municipal administrators' power position as reinforced by national level policy makers, particularly when introducing controversial policies.

Originality/value

Anti-poverty policy and the specific combination between conditional cash transfers and in-kind support have been explained at the level of political–economic decision making. The authors conceptualize the need to explain anti-poverty policy by focussing on municipal administrators’ embedded agency, particularly around controversial issues. By building the professional self of municipal welfare administrators, inter alia by ignoring past meanings of in-kind support as depriving recipients of autonomy, conditionality is extended into in-kind services.

Details

International Journal of Sociology and Social Policy, vol. 43 no. 11/12
Type: Research Article
ISSN: 0144-333X

Keywords

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