Long-run Effects of Public Expenditure on Poverty

Marisa Hidalgo-Hidalgo and Inigo Iturbe-Ormaetxe

No 17.09, Working Papers from Universidad Pablo de Olavide, Department of Economics

Abstract: Household characteristics may have long-run effects on individual outcomes in adulthood. For instance, individuals who lived when young in households experiencing financial problems are more likely to be poor when adults. Governments try to reduce these effects and to promote equality of opportunity. The objective of this paper is to check whether public expenditure has a long-run effect in reducing the probability of being poor when adult, and to what extent. Our main finding is that public expenditure in education has a strong long-run effect on reducing incidence of poverty in adulthood. We also find that this effect is concentrated mainly among individuals who have parents with a low level of education.

Keywords: Public expenditure in education; poverty rate; intergenerational transmission of poverty (search for similar items in EconPapers)
JEL-codes: C78 D61 D63 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2017-07
New Economics Papers: this item is included in nep-edu and nep-eur
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http://www.upo.es/serv/bib/wps/econ1709.pdf

Related works:
Journal Article: Long-run effects of public expenditure on poverty (2018)
Journal Article: Long-run effects of public expenditure on poverty (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:pab:wpaper:17.09

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