The Role of Constitutions on Poverty: A Cross-National Investigation

53 Pages Posted: 7 Mar 2015

See all articles by Alanson Minkler

Alanson Minkler

University of Connecticut - Department of Economics

Nishith Prakash

University of Connecticut; Institute for the Study of Labor

Abstract

In this paper we use novel historical data on economics and social rights from the constitutions of 201 countries and an instrument variable strategy to answer two important questions. First, do economic and social rights provisions in constitutions reduce poverty? Second, does the strength of constitutional language of the economic and social rights matter? Constitutional provisions can be framed either more weakly as directive principles or more strongly as enforceable law. We find three important results. First, we do not find an association between constitutional rights generally framed and poverty. Second, we do not find an association between economic and social rights framed as directive principles and poverty. Third, we do find a strong negative association between economic and social rights framed as enforceable law and poverty. When we use legal origins as our IV, we find evidence that this result is causal. Our results survive a variety of robustness checks. The policy implication is that constitutional provisions framed as enforceable law provide effective meta-rules with incentives for policymakers to initiate, fund, monitor and enforce poverty reduction policies.

Keywords: economic and social rights, constitutions, enforceable law, directive principles, poverty, instrumental variables, legal origin

JEL Classification: I24, I32, I38, O1, O38

Suggested Citation

Minkler, Alanson and Prakash, Nishith, The Role of Constitutions on Poverty: A Cross-National Investigation. IZA Discussion Paper No. 8877, Available at SSRN: https://ssrn.com/abstract=2575057 or http://dx.doi.org/10.2139/ssrn.2575057

Alanson Minkler (Contact Author)

University of Connecticut - Department of Economics ( email )

365 Fairfield Way, U-1063
Storrs, CT 06269-1063
United States

Nishith Prakash

University of Connecticut ( email )

365 Fairfield Way, U-1063
Storrs, CT 06269-1063
United States

HOME PAGE: http://https://sites.google.com/site/nishithprakash1978/

Institute for the Study of Labor ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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