Exploring public social expenditure trends in the globalization era

Abstract

Triggered by the phenomenon of globalisation, during recent years there has been a process of State policy rationalisation in the social expenditure domain; hence the debate over the present role and dimension of welfare state has intensified. Following on the extensive multidisciplinary literature on this issue, the purpose of this paper is two-fold 1) to apply a traditional analysis of convergence (sigma and beta convergence) in public social expenditures and 2) to analyse public social expenditure allocation expressed as a % of GDP and derive a possible classification of the countries by means of a multivariate approach. Our results, revealing that some convergence in the expenditure domain occurred for certain Southern and Northern European countries, can be interpreted as a further contribution to the literature on contemporary public policy evaluation in the welfare domain.