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Social Protection for Poverty Reduction in Times of Crisis

Author

Listed:
  • Kossi Assimaidou

    (IMF - IMF - IMF)

  • Youssouf Kiendrebeogo

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Abdoulaye Tall

    (IMF - IMF - IMF)

Abstract
The recent global crisis has highlighted the need to protect the poor and people vulnerable to adverse shocks. Many countries have implemented various programmes to protect social spending and help poor people during periods of financial crisis. This paper uses the most comprehensive database on social spending compiled thus far, and the unique cross-country database on poverty to explore the poverty-reducing role of social protection during financial crises. Using advanced panel data techniques to deal with endogeneity issues, we find that financial crises are associated with slower reductions in the poverty headcount and the poverty gap. Crises lead to 526,400-555,000 additional poor people and to an increase of 4.7-10.6 percentage points in the poverty gap in the medium to long term. These devastating effects of crises on poverty are relatively lower--by 11 and 20 percentage points for each percentage point increase in social spending for the poverty headcount and the poverty gap, respectively--in countries with higher social spending, suggesting the importance of social protection for poverty reduction in times of crisis and potential gains from policy intervention.

Suggested Citation

  • Kossi Assimaidou & Youssouf Kiendrebeogo & Abdoulaye Tall, 2013. "Social Protection for Poverty Reduction in Times of Crisis," CERDI Working papers halshs-00843010, HAL.
    • Handle: RePEc:hal:cdiwps:halshs-00843010
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00843010v2
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    References listed on IDEAS

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    Cited by:

    1. Thanh Cong Nguyen, 2022. "The effects of financial crisis on income inequality," Development Policy Review, Overseas Development Institute, vol. 40(6), November.
    2. Tudorache, Maria-Daniela, 2021. "Development in Romania during the post-crisis period: A human, economic and social perspective," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 28(3(628)), pages 15-32.
    3. Haojian Dou & Llibang Ma & Shichun Liu & Fang Fang, 2022. "Identification of rural regional poverty type based on spatial multi-criteria decision-making—taking Gansu Province, an underdeveloped area in China, as an example," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 3439-3460, March.
    4. repec:agr:journl:v:4(621):y:2019:i:4(621):p:163-180 is not listed on IDEAS
    5. Anderson, Edward & d'Orey, Maria Ana Jalles & Duvendack, Maren & Esposito, Lucio, 2018. "Does Government Spending Affect Income Poverty? A Meta-regression Analysis," World Development, Elsevier, vol. 103(C), pages 60-71.
    6. Nugroho, Anda & Amir, Hidayat & Maududy, Irsyan & Marlina, Irma, 2021. "Poverty eradication programs in Indonesia: Progress, challenges and reforms," Journal of Policy Modeling, Elsevier, vol. 43(6), pages 1204-1224.
    7. Maria-Daniela TUDORACHE, 2019. "Poverty rate determinants in the Central and Eastern Europe member states," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(621), W), pages 163-180, Winter.
    8. Maria-Daniela TUDORACHE, 2021. "Development in Romania during the post-crisis period: A human, economic and social perspective," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(628), A), pages 15-32, Autumn.
    9. Bamanga Umar & Sabri Nayan, 2018. "Poverty Reduction and Stock Market Development:Evidence from Africa," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 6(3), pages :338-356, September.

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    More about this item

    Keywords

    Poverty; Social Spending;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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