The Impact of the Great Recession on Social Spending in Romania

Revista de Cercetare si Interventie Sociala, Volumul: 47/2014/Decembrie, pg. 32-43, 2014, ISSN (electronic): 1584-5397

13 Pages Posted: 5 Jan 2018

See all articles by Emilia Titan

Emilia Titan

Bucharest University of Economic Studies

Adrian Otoiu

Bucharest University of Economic Studies

Daniela Manea

Bucharest Academy of Economic Studies

Date Written: 2014

Abstract

The paper attempts to do a comprehensive analysis on how spending patterns were affected by the most severe economic crisis since the oil shocks in the 70’s. We have attempted to see which services have been significantly affected by the crisis, and whether social spending has risen and managed to counter the effects of the crisis. We have found that, despite generalized increase in social spending, the crisis had no major impact for some important social spending categories. Social protection revenue has increased and matched to a good extent social protection spending, which was also affected by a strong increase in the cohorts reaching retirement age. We also found that, contrary to other literature findings, spending on social services was countercyclical, increasing in the first years of the crisis, and declined afterwards. There is evidence that social spending managed to sustain a decrease in poverty and inequality during the crisis.

Keywords: crisis, social services, Romania, social protection expenditures

JEL Classification: E32, E62, H53, H55

Suggested Citation

Titan, Emilia and Otoiu, Adrian and Manea, Daniela, The Impact of the Great Recession on Social Spending in Romania (2014). Revista de Cercetare si Interventie Sociala, Volumul: 47/2014/Decembrie, pg. 32-43, 2014, ISSN (electronic): 1584-5397, Available at SSRN: https://ssrn.com/abstract=3095047

Emilia Titan

Bucharest University of Economic Studies ( email )

Tache Ionescu street, no. 11, sector 1
Bucharest
Romania

Adrian Otoiu (Contact Author)

Bucharest University of Economic Studies ( email )

Romania

Daniela Manea

Bucharest Academy of Economic Studies

6, Romana Square, District 1
Bucharest, 010374
Romania

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