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

Published online by Cambridge University Press:  12 April 2021

Marcelo Santos Open the ORCID record for Marcelo Santos [Opens in a new window]  and
Marta Simões Open the ORCID record for Marta Simões [Opens in a new window]
Marcelo Santos
Affiliation:
University of Coimbra, CeBER, Faculty of Economics, Coimbra, Portugal
Marta Simões*
Affiliation:
University of Coimbra, CeBER, Faculty of Economics, Coimbra, Portugal
*
Email: mcsimoes@fe.uc.pt
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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.

Keywords

Globalisationsocial expenditurewelfare policiesOECDGMM
Type
Research Article
Information
Journal of International and Comparative Social Policy , Volume 37 , Issue 3 , November 2021 , pp. 195 - 210
Copyright
© The Author(s), 2021. Published by Cambridge University Press on behalf of Social Policy Association

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