Indicators of Government Social Expenditure and Their Impact on Reducing Income Inequality in a Sample of Countries
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Abstract
The study aimed to analyze the relationship between government social expenditure indicators and income inequality, as well as to estimate the impact of these indicators—namely, spending on education, health, and social protection—as a percentage of GDP on reducing the income inequality gap, measured by the Gini coefficient. The study included a sample of 20 high-income countries To achieve the study’s objective in line with the characteristics of the time series data used, the research adopted the Fixed Effects Model (FEM) methodology based on Panel Data, where cross-sectional observations were measured over unequal time periods, referred to as Unbalanced Panel Data.
The findings revealed that education spending does not contribute to reducing income inequality, whereas health and social protection spending align with economic theory in the study sample.
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