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  When the High-Income Country Context Dissolves: Social Policy Preferences in Low- and Middle-Income Democracies

Berens, S. (2013). When the High-Income Country Context Dissolves: Social Policy Preferences in Low- and Middle-Income Democracies. PhD Thesis, University of Cologne, Cologne.

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Berens, Sarah1, Author           
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1International Max Planck Research School on the Social and Political Constitution of the Economy, MPI for the Study of Societies, Max Planck Society, ou_1214550              

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 Abstract: The provision of welfare services can be understood as an iterated public goods game in simplified terms. Individuals contribute via taxation while the state cooperates by the provision of welfare services as return for paid contributions. Focusing on welfare provision in low- and middle-income democracies, where we find decisive variation in state capacity and considerable inefficiencies such as high rates of income inequality, corruption, and a prosperous informal economy, the efficiency of the public goods game becomes uncertain. If the state is perceived as weak and untrustworthy because of lacking capacity to extract revenue and to deliver social services, why should individuals turn towards this low-capacity entity for provision of welfare services? Drawing upon the current debate on redistributive preferences in the political economy literature, the overall research question that this dissertation is concerned with therefore asks: what happens to individual social policy preferences when the context of high-income states dissolves? The dissertation analyses social policy preference formation in the context of increased uncertainty that is reflected by weaknesses in the distributive and extractive capacities of the state and inefficiency – that is, the informal economy. Based on cross-country survey data for a large set of less developed democracies, the study illustrates with the use of hierarchical modeling techniques how context characteristics influence individual preferences, next to micro level factors such as income, education, and labor market status. The analyses reveal a considerable impact of these key features of the public goods game for social policy preferences in low- and middle-income democracies. The dissertation builds a micro-foundation for social policy in low- and middle-income democracies that takes into account the institutional and structural framework of the state and the particularities of a stratified labor market.

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Language(s): eng - English
 Dates: 2013-12-172013
 Publication Status: Issued
 Pages: XLIX, 170, 4
 Publishing info: Cologne : University of Cologne
 Table of Contents: Introduction
The Argument
State of the Art
Contribution
Case Selection
A Brief Note on Data
Overview
Acknowledgments
1 Social Policy Preferences from a Comparative Perspective
1.1 Introduction
1.2 Social Policy Preferences and the Welfare State
1.3 Theoretical Framework
1.3.1 Social Policy Preferences and Context
1.3.2 The Dysfunctional Equivalent: The Size of the Informal Sector and
Corruption
1.4 Empirical Strategy
1.4.1 Dependent Variables: Welfare Demand and Redistribution
1.4.2 Independent Variables
1.4.3 Controls
1.4.4 Case Selection
1.4.5 Model: Hierarchical Random-Intercept Model
1.5 Result
1.6 Robustness Tests
1.6.1 Stepwise Inclusion
1.6.2 Logistic Hierarchical Model
1.7 Conclusion
1.8 Appendix
2 Public versus Private Welfare Provision
2.1 Introduction
2.2 Theoretical Framework: Social Policy Preferences in a Stratified Labor
Market
2.2.1 The Informal Sector
2.2.2 The Exclusion Hypothesis
2.2.3 The Solidarity Hypothesis
2.3 Social Policy in Latin America
2.4 Statistical Strategy, Data, and Variables
2.4.1 Dependent Variable
2.4.2 Explanatory Variables: Size of the Informal Sector and Income
Group
2.4.3 Controls
2.4.4 Model
2.5 Results
2.5.1 Average Impact of the Informal Sector
2.5.2 Cross-Level Interactions
2.5.3 Cross-Level Interactions for the Full Sample
2.6 Conclusion
2.7 Appendix
2.8 Supplementary Material
3 Labour Market Stratification and Social Policy in Latin America
3.1 Introduction
3.2 Theoretical framework
3.2.1 Informal workers
3.2.2 The welfare system in Latin America and the Caribbean
3.2.3 Economic self-interest and economic uncertainty
3.2.4 Socio-economic differences and similarities
3.2.5 The formal–informal preference differential
3.3 Empirical strategy – variable description and model specification
3.3.1 Explanatory variables
3.3.2 Control variables
3.3.3 Model specification
3.4 Results
3.4.1 Economic insecurity: Who is at risk?
3.4.2 The influence of labour market status on social policy preferences
3.4.3 Social policy preferences of formal and informal sector workers
3.4.4 Social policy preferences and the context of uncertainty
3.5 Conclusion
3.6 Appendix
3.7 Supplementary Material
4 Social Policy and the Informal Sector
4.1 Introduction
4.2 Who are the Informals?
4.3 The Latin American Welfare State
4.4 The Argument: Motives for Informalization
4.4.1 Individual Factors
4.4.2 Public Transfers, Institutional Quality, and Informalization
4.4.3 Government Perception and Society
4.5 Empirical Setup
4.5.1 Estimation Model and Variable Description
4.6 Results
4.6.1 Education and Family Background
4.6.2 The Exit Seekers: Perception of the Government
4.6.3 The Exit Seekers: Public Transfers and Institutional Quality
4.6.4 Sensitivity Tests
4.7 Conclusion
4.8 Appendix
4.9 Supplementary Material
5 Conclusion
Bibliography
 Rev. Type: -
 Degree: PhD

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