Abstract
Abstract This paper studies the effect of constitutional commitment to social security (CCSS) on different categories of social expenditure. For this purpose, we use a pooled cross sectional database for 17 EU-countries from 1990 till 2012. We run OLS models, 2SLS regression models and the Heckman two step model, using the rigidity of the constitution as instrumental variable to correct for possible endogeneity. A positive effect of constitutional commitment to social security is found on total social expenditure and on all four categories of social security spending: old age and survivor, incapacity, unemployment and active labor market policies (ALMPs). The largest effect sizes, expressed as a percentage of average spending, are found for expenditure on unemployment and ALMPs. This shows that constitutional commitment to social security has the largest effect on social expenditure schemes targeted at people who are perceived as less deserving by the public opinion.
Highlights
In recent decades, politicians and academics have emphasized the role of social rights for social and economic development (Townsend, 2007; ILO, 2014)
We find some evidence that more right-wing cabinet seats translate in lower total social expenditure but that the interaction between right-wing cabinet seats and constitutional commitment to social security (CCSS) has a positive effect on total social expenditure
We studied the effect of constitutional commitment to social security (CCSS) on different kinds of social expenditure
Summary
Politicians and academics have emphasized the role of social rights for social and economic development (Townsend, 2007; ILO, 2014). The main argument for a rights-based approach to development is that it gives an entitlement that can be enforced in court. Without such a right, people depend on the government for proper education, health care and social security. The constitution can provide universal rights for everyone, or protect minorities against the majority. This study provides insights in the character of constitutional commitment to social security (CCSS).. Does CCSS have the largest effects on social expenditure schemes with a universal character, being complementary to the median voter, or does CCSS have mostly an effect on expenditure categories targeted at minorities, being a substitute for the median voter This study provides insights in the character of constitutional commitment to social security (CCSS). Does CCSS have the largest effects on social expenditure schemes with a universal character, being complementary to the median voter, or does CCSS have mostly an effect on expenditure categories targeted at minorities, being a substitute for the median voter
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