Dimensions of globalisation and social welfare policies in Organisation for Economic Co-operation and Development countries

Abstract

Which dimensions of globalisation have an impact on social expenditure? How do different social welfare policies react to globalisation? This paper addresses these questions focusing on 36 Organisation for Economic Co-operation and Development countries over the period 1990–2015 and applying system Generalised Method of Moments to deal with endogeneity. We consider different dimensions of globalisation, economic, social and political, and their potential differentiated impacts on variegated social welfare policies. According to our findings, all the dimensions of globalisation have a positive effect on total social expenditure and on most of its components, although the influence is not statistically significant for social globalisation. The social welfare policies affected by globalisation are old age pensions, incapacity related, family and unemployment benefits and active labour market policies. These results can shed additional light on social and economic outcomes of globalisation such as poverty, inequality, long run growth and economic recovery.

Globalisation, Welfare Models and Social Expenditure in OECD Countries

“…The presentation in this section follows closelySantos and Simões (2021). They investigate the association between different dimensions of globalisation and varied welfare programs not taking into account the mediating role of welfare models, the focus of the present study.…”

Economic globalisation and labour market outcomes in Africa

“…The focus of this study is on the economic component of globalisation. Economic globalisation is expected to cause positive changes in production, labour and capital markets that stimulate disparate effects on growth, income inequalities, factor demands and income shares (Santos & Simões, 2021;Van Treeck & Wacker, 2020). It became a catchword in Africa during the 1990s because of its perceived role in incentivising FDI, integrating labour markets, and the transfer of technology and innovations that augment economic growth (Beri & Nubong, 2021).…”