The Impact of Public Services Expenditure on the Spanish Income Distribution

Antonio Jurado (), Jesús Pérez-Mayo and Francisco Pedraja ()
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Antonio Jurado: Universidad de Extremadura
Francisco Pedraja: Universidad de Extremadura

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2016, vol. 127, issue 1, No 11, 217-241

Abstract: Abstract This paper performs an assessment and imputation of the benefits produced to the individuals and households well-being by the public services provision. This analysis is very relevant in the current framework of economic crisis of the European economies. Although most of the papers in the literature compare countries, decentralization processes are included in this paper by accounting the effect of public expenditure on regional health care and education upon the levels of inequality and rates of poverty in each Spanish region. This case is relevant because of the high decentralization degree of the Spanish political structure and the persistent regional disparities. The results show a clear downward tendency in both phenomena following imputation, although education shows a greater impact. Furthermore, a decomposition, used in this context for the first time, of the effects shows the very relevant redistributive effect of this public expenditure.

Keywords: Well-being; Poverty; Income distribution; In-kind benefits; Inequality; Public services (search for similar items in EconPapers)
JEL-codes: I14 I24 I32 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11205-015-0957-y

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