Are Public and Private Social Expenditures Complementary?

Koen Caminada () and Kees Goudswaard

International Advances in Economic Research, 2005, vol. 11, issue 2, 175-189

Abstract: Most analyses of social protection are focussed on public arrangements. However, social effort is not restricted to the public domain; all kinds of private arrangements can be substitutes to public programs. OECD data indicate that accounting for private social benefits has an equalising effect on levels of social effort across a number of countries. This suggests complementarity between public and private social expenditures. But their distributional effects differ. Using cross-country data, we find a negative relationship between net public social expenditures and income inequality, but a positive relationship between net private social expenditures and income inequality. We conclude that changes in the public/private mix in the provision of social protection may affect the redistributive impact of the welfare state. Copyright International Atlantic Economic Society 2005

Keywords: D3; H22; H55 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (21)

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Working Paper: Are public and private social expenditures complementary? (2004)
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DOI: 10.1007/s11294-005-3014-9

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