The Redistributive Impactive of Government Spending on Education and Health Evidence from Thirteen Developing Countries in the Commitment to Equity Project

Nora Lustig

No 30, Commitment to Equity (CEQ) Working Paper Series from Tulane University, Department of Economics

Abstract: Here, I examine the level, redistributive impact and pro-poorness of government spending on education and health for thirteen developing countries from the Commitment to Equity project. Social spending as a share of total income is high by historical standards, and it rises with income per capita and income inequality. Spending on education and health lowers inequality and its marginal contribution to the overall decline in inequality is, on average, 69 percent. There appears to be no “Robin Hood Paradox:” redistribution increases with income inequality, even if one controls for per capita income. Concentration coefficients indicate that spending on pre-school, primary and secondary education is pro-poor in twelve countries. Spending on tertiary education is regressive and unequalizing in three countries, and progressive and equalizing (but not pro-poor) in ten. Health spending is pro-poor in five countries. Of the remaining eight, health spending per capita is roughly equal across the income distribution in three, and progressive and equalizing (but not pro-poor) in five.

Keywords: fiscal incidence; social spending; inequality; developing countries (search for similar items in EconPapers)
JEL-codes: D31 H22 I3 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2015-03
New Economics Papers: this item is included in nep-edu, nep-hea and nep-lam
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Published in Commitment to Equity, March 2015, pages 1-28

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http://repec.tulane.edu/RePEc/ceq/ceq30.pdf First version, 2015 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:tul:ceqwps:30

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