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

Hideki Konishi () and Naomi Miyazato ()
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Hideki Konishi: Faculty of Political Science and Economics, Waseda University
Naomi Miyazato: Department of Economics, Nihon University

No 1804, Working Papers from Waseda University, Faculty of Political Science and Economics

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.

Keywords: Private social expenditure; Hidden welfare state; Income redistribution; Dynamic panel model (search for similar items in EconPapers)
JEL-codes: H53 I38 P51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-pbe
Date: 2018-07
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