Institutional factors and people's preferences in social protection
Franziska Gassmann, Pierre Mohnen & Vincenzo Vinci
#2016-003
Social Protection (SP) policies and institutions play multiple roles for
the achievement of inclusive development. Over the last decade a
paradigm shift took place whereby SP is no longer seen just as a cost
for an economy, but instead as a social investment. Still, governments
of low and middle-income countries are reluctant to invest in
nationally-owned SP systems. Developing countries redistribute only a
small share of GDP to households in extreme or persistent poverty. This
paper estimates whether and to what extent the level of SP expenditure
varies with institutional quality and people's preferences using
cross-country panel data.
JEL Classification: H11, H53, I38
Key Words: Developing countries, Institutions, Public policies, Social protection
