Does social protection crowd out social investment?

Yun Young Kim, Young Jun Choi

Research output: Contribution to journalArticlepeer-review

Abstract

In this era of austerity, while there are significant fiscal pressures on social protection programs particularly on cash benefits, there is increasing rhetoric concerning the ‘social investment turn.’ Yet, some scholars question whether social investment policies are actually expanding. The evidence is not sufficiently apparent, and others question whether social protection policies have actually crowded out social investment policies. So far, few systematic studies have examined this issue. This research aims to explore the effect of traditional social protection on social investment policies in 18 OECD countries from 1980 to 2010. To investigate the predictive and causal relationships between the two types of policies, we will use the Granger panel analysis. Then, we will adopt the Beck & Katz panel model to analyze the crowding-out effect that social protection policies have on social investment. We argue that social protection has not crowded out social investment policies in general but, rather, that the positive link between them is increasingly weaker in recent years. In the end, we discuss the theoretical and policy implications of our findings.

Original languageEnglish
Pages (from-to)208-225
Number of pages18
JournalPolicy and Society
Volume39
Issue number2
DOIs
Publication statusPublished - 2020 Apr 2

Bibliographical note

Funding Information:
This work was supported by a grant from the National Research Foundation of Korea [2017S1A2A2041808].

All Science Journal Classification (ASJC) codes

  • Sociology and Political Science
  • Public Administration
  • Political Science and International Relations

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