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Distributive Impacts of Social Protection Systems in OECD Countries: Public-Private Mix and Hidden Welfare States

Author

Listed:
  • Hideki Konishi

    (Faculty of Political Science and Economics, Waseda University)

  • Naomi Miyazato

    (Department of Economics, Nihon University)

Abstract

Modern welfare states provide social protection benefits not only directly through the public sector but also through the private sector in conjunction with governmental engagement, e.g., by mandating employment-based provisions and giving tax breaks for voluntary transactions. Countries with sufficient social support provided largely via the private sector are called hidden welfare states. Integrating such private social expenditures, this paper estimates the overall distributive impacts of social protection systems in OECD countries, using the SOCX data base. Taking into account measurement biases in income inequality indices and reverse causality stemming from policy formation decisions, it found that the overall distributive impact decreases as the provision of social support relies more on the private sector and has no statistical difference from zero in some hidden welfare states.

Suggested Citation

  • Hideki Konishi & Naomi Miyazato, 2018. "Distributive Impacts of Social Protection Systems in OECD Countries: Public-Private Mix and Hidden Welfare States," Working Papers 1804, Waseda University, Faculty of Political Science and Economics.
    • Handle: RePEc:wap:wpaper:1804
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    References listed on IDEAS

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    More about this item

    Keywords

    Private social expenditure; Hidden welfare state; Income redistribution; Dynamic panel model;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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