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Welfare spending and political conflict in Latin America, 1970–2010

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  • Justino, Patricia
  • Martorano, Bruno

Abstract

We study an age-old question in political economy: does government spending on welfare ensure peace? This question was at the heart of the European Welfare State model of the early 20th century, and remains relevant today in face of rising inequalities and political conflict. Yet there is limited empirical evidence about this question. We make use of a panel of 12 Latin American countries over the period 1970–2010 to show that welfare spending has led to substantial reductions in conflict across the region. This effect is more pronounced when associated with reductions in inequality and increasing social and institutional trust.

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  • Justino, Patricia & Martorano, Bruno, 2018. "Welfare spending and political conflict in Latin America, 1970–2010," World Development, Elsevier, vol. 107(C), pages 98-110.
    • Handle: RePEc:eee:wdevel:v:107:y:2018:i:c:p:98-110
    DOI: 10.1016/j.worlddev.2018.03.005
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    6. Luis Rene Caceres, 2019. "Determinants of trust in government in Latin America," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 14(3), pages 329-351, Julio - S.
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    More about this item

    Keywords

    Welfare spending; Inequality; Conflict; Latin America;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • N16 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Latin America; Caribbean

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