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Social protection spending and financial crises

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  • Nguyen, Thanh Cong
  • Castro, Vítor
  • Wood, Justine

Abstract

This paper assesses the impact of distinct types of financial crises on social protection spending using a panel of 105 countries over the period 1991–2019. The findings show that spending on social protection increases when financial crises strike, mainly in the aftermath of banking crises. However, currency and debt crises are detrimental to spending on social protection, threatening social wellbeing.

Suggested Citation

  • Nguyen, Thanh Cong & Castro, Vítor & Wood, Justine, 2024. "Social protection spending and financial crises," Finance Research Letters, Elsevier, vol. 59(C).
    • Handle: RePEc:eee:finlet:v:59:y:2024:i:c:s154461232301125x
    DOI: 10.1016/j.frl.2023.104753
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    References listed on IDEAS

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    Cited by:

    1. Li, Guoying & Liu, Zhenhai & Liu, Tangsen & Chen, Li, 2024. "Twisted industrial structure, land financing mode and social security," Finance Research Letters, Elsevier, vol. 69(PA).
    2. Nguyen, Thanh Cong & Ho, Thuy Tien, 2025. "Understanding the informal economy: The influence of political ideology during financial crises," Economic Modelling, Elsevier, vol. 142(C).

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    More about this item

    Keywords

    Social protection spending; Financial crises; Types of financial crises;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • G01 - Financial Economics - - General - - - Financial Crises
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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