Perspectives on Inequality and Social Protection

Abstract

The dissertation consists of an introductory chapter and four separate articles. Two of the articles investigate the links between income inequality and two increasingly salient development problems, particularly in Latin America and Africa: violent crime and HIV. These two articles connect to a broad literature on how income inequality is related to various social and political outcomes. Previous econometric findings are reviewed, replicated and in some cases questioned. Alternative theories on mechanisms that constitute the link from inequality to these social outcomes are formulated and some preliminary steps are taken to test them against each other. The last two articles focus on specific issues related to the provision of social protection in the form of social transfers: the impact of social pensions on fertility in sub-Saharan Africa and the potential use of external financing to relax the affordability constraint for introducing social transfers in low-income countries. Findings are presented in support of the assumption that the introduction of social pensions would tend to reduce fertility, also in sub-Saharan Africa. The last article discusses and problematizes the use of external financing for social transfers. It points out risks as well as opportunities and suggests innovative aid modalities.