Structural public balance adjustment and poverty in Europe

Canale, Rosaria Rita; Liotti, Giorgio; Marani, Ugo

doi:10.1016/j.strueco.2019.07.002

Cited by 11 publications

(11 citation statements)

References 34 publications

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“…Without the intervention of external factors (for example, an increase in exports), inflation could contribute to the increase of youth unemployment. Government debt/GDP ratio The hypothesis in the economic literature is that higher government debt/GDP has a negative effect on (youth) unemployment for two reasons: (1) the reduction of government debt/GDP forces countries to implement fiscal retrenchment measures, reducing in such a way the level of aggregate demand (Canale et al 2014 , 2019 ; Canale and Liotti 2015 ) and (2) higher government debt/GDP compromises the level of economic growth (Reinhart and Rogoff 2010 ). Therefore, according to this theory, the simultaneous estimate of these two variables can lead to biased results.…”

Section: Empirical Analysismentioning

confidence: 99%

Labour Market Regulation and Youth Unemployment in the EU-28

Liotti

2021

Ital Econ J

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The rise of youth unemployment has been one of the most serious problems which policymakers have had to deal with over the last two decades. Neoclassical economic theory suggests that the deregulation (i.e. higher flexibility) of the labour market stimulates firms to hire young people and—therefore—reduces youth unemployment. The aim of this study is to empirically test the validity of this hypothesis, analysing data on youth unemployment and labour market regulation index (LMRI) for 28 European countries in the period between 2000 and 2018. The empirical results—using two different econometric techniques (time and fixed effects that allows to take into account the presence of heterogeneity of countries in the model and pooling mean group (PMG) estimator providing results about the short and long run relationship between LMRI and youth unemployment)—do not provide evidence in support of the neoclassical hypothesis. In particular, the effect of higher flexibility of the labour market is negative and statistically significant (at 1%) only when a dummy variable for the Eastern country group is included in the model. Vice-versa, the paper shows that higher economic growth and higher investment in active labour market policy represent the key variables to reduce the youth unemployment. In conclusion, the paper raises many doubts that the introduction of flexibility measures in itself can represent a useful tool to counteract the increase of youth unemployment in Europe.

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Section: Empirical Analysismentioning

confidence: 99%

Labour Market Regulation and Youth Unemployment in the EU-28

Liotti

2021

Ital Econ J

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“…Deteriorating macroeconomic conditions and negative fluctuations in output meant that euro area countries had limited capacity to intervene to lift people out of poverty due to lack of resources. In fact, it has occurred that some countries, after using fiscal policy as a stabilization instrument in the aftermath of the crisis, were forced to implement fiscal austerity measures [ 51 ]. The countries worst affected by the crisis faced sharply declining private and public incomes and declining growth rates due to falling foreign capital inflows, domestic credit and remittances, falling commodity prices, and deteriorating trade conditions.…”

Section: Discussionmentioning

confidence: 99%

Assessment of the Development of Poverty in EU Countries

Sompolska-Rzechuła

Kurdyś-Kujawska

2022

IJERPH

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The aim of the article is to assess of development of poverty in EU countries in 2010 and 2019. The study used the model method of the linear ordering of objects—TOPSIS, considering the distance of each object from both the pattern and the non-pattern development. The originality of the work consists in the use of primary data obtained from the Eurostat database and the winsorized data that were created on the basis of outliers. The indicators characterizing the first goal of sustainable development—“No poverty” were used. The results of the research indicate that the inhabitants of western Europe and Scandinavia are less affected by poverty than the population of eastern and southern Europe. The division of countries according to the scale of poverty is reflected in the level of GDP per capita.

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“…Brazil's implementation of "development pole measures" using public policy has also significantly reduced poverty. In contrast, some scholars think that the objective of sound public finance seems to be gained at the expense of a higher number of people living in poverty, and a large part of government spending does not reach poor households, due to imperfect targeting (Easterly & Fischer, 2001;Lindert et al, 2006;Anderson, 2018;Canale et al, 2019). A literature review by Chu et al (2000) covering 55 developing country studies, for example, finds that while public spending in education and health are progressive (i.e., equalizing), they were not sufficiently targeted to the poor especially in sub-Saharan Africa.…”

Section: Introductionmentioning

confidence: 99%

Rural Public Expenditure and Poverty Alleviation in China: A Spatial Econometric Analysis

Li¹,

Li²,

Rong³

2020

JAS

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In China, one of the most important reducing poverty means is continuous and large-scale public financial investment. This paper investigated the structural differences between rural public expenditure (namely, education, health, social security, infrastructure, living environment) and poverty in 27 provinces of China in 2010-2016 from the spatial econometric perspective. The results showed the structural differences in poverty reduction effects of government spending are very obvious, indicating that expenditures on education, health care, social security and infrastructure have all shown good poverty alleviation effects, while living environment spending has no significant effect on poverty reduction. We further find that government spending not only promote poverty reduction in the region, but also reduce poverty in economically and geographically similar areas, which suggests that future work should look more closely at whether and how the effect of government spending on poverty varies by structure. Thus, the findings established in this paper have significant implications for targeted poverty alleviation measures in China through government spending policies.

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Structural public balance adjustment and poverty in Europe

Cited by 11 publications

References 34 publications

Labour Market Regulation and Youth Unemployment in the EU-28

Labour Market Regulation and Youth Unemployment in the EU-28

Assessment of the Development of Poverty in EU Countries

Rural Public Expenditure and Poverty Alleviation in China: A Spatial Econometric Analysis

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