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Social Protection Convergence in the European Union: Impact of Maastricht Treaty

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  • Nicole Attia
  • Valérie Berenger

Abstract

The main goal of this paper is to test the convergence of social protection expenditures and, more specifically, to examine the incidence of the Maastricht Treaty on this process. We tested several hypotheses of convergence on 12 EU Member States between 1980 and 2000, by considering two indicators: social protection expenditure as percentage of GDP and social protection expenditure per capita. The cross sectional tests of a and ß-convergence show that, for the two indicators, these two assumptions are checked for the whole of the period. On the other hand, the period division in two sub-periods intended to locate the Maastricht effect indicates a rupture since 1993. Then, panel data estimations of conditional ß-convergence confirm the existence of a process of conditional convergence and reveal the significant role of the debt criterion of Maastricht. The coexistence of absolute and conditional ß-convergence is not incompatible. It evokes the possible idea of a European "Social Snake" rather than of a single Social Model. Key words: Welfare-state, Social protection, Convergence, European Union, Panel data estimation.JEL: H53, O52, I38.

Suggested Citation

  • Nicole Attia & Valérie Berenger, 2007. "Social Protection Convergence in the European Union: Impact of Maastricht Treaty," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 54(4), pages 469-487.
    • Handle: RePEc:voj:journl:v:54:y:2007:i:4:p:469-487:id:293
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    More about this item

    Keywords

    Welfare-state; Social protection; Convergence; European Union; Panel data estimation;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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