Effectiveness and Equity in Social Spending - The Case of Spain

Author/Editor:

Svetlana Vtyurina

Publication Date:

January 30, 2020

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

Spain is experiencing sustained economic and social disparities in several areas. Social spending policies have a heightened responsibility to respond but are challenged by high public debt and pressures from an aging society. This study takes stock of the level and effectiveness of public social expenditure from a cross-country and macroeconomic view, complementing recent targeted spending reviews. The results suggest that social protection spending should aim to improve redistribution through better targeting the most vulnerable while more effective education and active labor market policies should aim to create more equal opportunities and income prospects. In some areas more fiscal resources are needed. But social spending alone cannot reduce inequality, and efforts also should be directed toward making the labor market more inclusive.

Series:

Working Paper No. 20/16

Subject:

English

Publication Date:

January 30, 2020

ISBN/ISSN:

9781513526003/1018-5941

Stock No:

WPIEA2020016

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

27

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