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Can social spending cushion the inequality effect of globalization?

Nilsson, Therese LU ; Bergh, Andreas LU and Mirkina, Irina LU (2020) In Economics & Politics 32(1). p.104-142
Abstract
This paper examines whether social spending cushions the effect of globalization on within‐country inequality. Using information on disposable and market income inequality and data on overall social spending, and health and education spending from the ILO and the World Bank/WHO, we analyze whether social spending moderates the association between economic globalization and inequality. The results confirm that economic globalization—especially economic flows—associates with higher income inequality, an effect driven by non‐OECD countries. Health spending is strongly associated with lower inequality, but we find no robust evidence that any kind of social spending negatively moderates the association between economic globalization and... (More)
This paper examines whether social spending cushions the effect of globalization on within‐country inequality. Using information on disposable and market income inequality and data on overall social spending, and health and education spending from the ILO and the World Bank/WHO, we analyze whether social spending moderates the association between economic globalization and inequality. The results confirm that economic globalization—especially economic flows—associates with higher income inequality, an effect driven by non‐OECD countries. Health spending is strongly associated with lower inequality, but we find no robust evidence that any kind of social spending negatively moderates the association between economic globalization and inequality. (Less)
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author
; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
Economics & Politics
volume
32
issue
1
pages
39 pages
publisher
Wiley-Blackwell
external identifiers
  • scopus:85073979449
ISSN
1468-0343
DOI
10.1111/ecpo.12143
language
English
LU publication?
yes
id
d530dbde-c3b7-4902-92ef-bb19f5106ec7
date added to LUP
2019-06-06 09:55:19
date last changed
2022-04-26 00:58:13
@article{d530dbde-c3b7-4902-92ef-bb19f5106ec7,
  abstract     = {{This paper examines whether social spending cushions the effect of globalization on within‐country inequality. Using information on disposable and market income inequality and data on overall social spending, and health and education spending from the ILO and the World Bank/WHO, we analyze whether social spending moderates the association between economic globalization and inequality. The results confirm that economic globalization—especially economic flows—associates with higher income inequality, an effect driven by non‐OECD countries. Health spending is strongly associated with lower inequality, but we find no robust evidence that any kind of social spending negatively moderates the association between economic globalization and inequality.}},
  author       = {{Nilsson, Therese and Bergh, Andreas and Mirkina, Irina}},
  issn         = {{1468-0343}},
  language     = {{eng}},
  number       = {{1}},
  pages        = {{104--142}},
  publisher    = {{Wiley-Blackwell}},
  series       = {{Economics & Politics}},
  title        = {{Can social spending cushion the inequality effect of globalization?}},
  url          = {{http://dx.doi.org/10.1111/ecpo.12143}},
  doi          = {{10.1111/ecpo.12143}},
  volume       = {{32}},
  year         = {{2020}},
}