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Social transfers and conditionalities under different regime types

Author

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  • Dodlova, Marina
  • Giolbas, Anna
  • Lay, Jann

Abstract

This paper examines the implications of political factors for social policy choices. Specifically, we explore the link between regime type and adoption of unconditional transfers versus transfers conditioned on beneficiaries’ investments in human capital. Due to the direct nature of benefits, unconditional transfers are more likely to be used to buy off opposition and prevent social unrest. As transfers that are conditioned on education and health pay off only in a relatively distant future, they are rarely initiated for political motives and rather defined by interests of long-term development and human capital accumulation. Using the new dataset on Non-Contributory Social Transfer Programs (NSTP) in developing countries, we find that transfers are indeed chosen so as to be unconditional under less democratic regimes. There is some evidence that conditional transfers are more likely to be adopted in democracies. In particular, democracies tend to increase the number of conditional schemes once any social transfer program is introduced.

Suggested Citation

  • Dodlova, Marina & Giolbas, Anna & Lay, Jann, 2017. "Social transfers and conditionalities under different regime types," European Journal of Political Economy, Elsevier, vol. 50(C), pages 141-156.
  • Handle: RePEc:eee:poleco:v:50:y:2017:i:c:p:141-156
    DOI: 10.1016/j.ejpoleco.2017.10.001
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    Cited by:

    1. BALTES Nicolae & JIMON Stefania Amalia, 2018. "Pension System In Reducing Poverty Risk In Romania," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 70(1), pages 114-127, August.
    2. Arif, Imran & Hall, Joshua C., 2019. "International flows of people and institutional change," European Journal of Political Economy, Elsevier, vol. 58(C), pages 276-288.
    3. Asri, Viola & Michaelowa, Katharina & Panda, Sitakanta & Paul, Sourabh B., 2022. "The pursuit of simplicity: Can simplifying eligibility criteria improve social pension targeting?," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 820-846.
    4. Nicolae Balteș & Ștefania Amalia Jimon, 2019. "The Effectiveness of Pension Systems in Some Countries of Central and Eastern Europe," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 555-561, August.
    5. Niño-Zarazúa, Miguel & Santillán Hernández, Alma, 2021. "The political economy of social protection adoption," MPRA Paper 109213, University Library of Munich, Germany.
    6. repec:blg:reveco:v:70:y:2018:i:3:p:8-21 is not listed on IDEAS

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