In this paper, there is an attempt to compile evidence on the benefit incidence of public education and health spending in 2005 in Thailand. The 2005 data marks an improvement over Medhi Krongkaew’s 1979 analysis due to changes in the creation of the quintile income groups and marked improvement in the data collected on the whole. This paper is used to ascertain which income groups tend to benefit more from social spending. The paper also explores the relationship between benefit incidence on the one hand and indicators of access to education and health services and social outcomes on the other using simple measures of association. In addition, the paper explores the policy implications of these findings. In general, there is an attempt to enhance the position of the poor as the total (all) post-expenditure saw a major improvement in the Gini coefficient to record 0.2818 from 0.3056 or a rate of improvement of 2.38%. On the basis of these findings, it could be concluded that government’s interventions or subsidies on the two functional areas is pro-poor or progressive as it seeks to favor the poor. This will enhance the position of the poor as to accessing these two facilities in Thailand. We make a number of policy recommendations to enhance government’s efforts in eradicating poverty in the not distant future.
Table of Contents
1. General Overview
2. Research Questions
2.1 Research Objectives
3. Methodology of Benefit Incidence Analysis
4. Empirical Evidence
4.1 Income Distribution by class and household characteristics
4.2 Distributional Effects of Public Spending by Functional Areas
4.3 Post –Expenditure income distribution
5. Policy Recommendation
Research Objectives and Key Topics
This paper aims to examine the distributional impact of public spending on education, health, and social welfare in Thailand using benefit incidence analysis to determine how effectively government interventions support lower-income groups.
- Measurement of benefit incidence across various income quintiles.
- Evaluation of public spending progressivity regarding education and health services.
- Assessment of the post-expenditure income distribution and Gini coefficient changes.
- Analysis of access barriers to public services for the poor.
- Formulation of policy recommendations for more equitable government subsidies.
Excerpt from the Book
3. Methodology of Benefit Incidence Analysis
In the literature, most of benefit incidence analyses divide the population into sub-groups (e.g. quintiles or deciles) based on household per capita income. Since expenditures on health and education are expected to have a redistributive impact, BIA is centered on assessing whether public spending is progressive, that is, whether it improves the distribution of welfare, proxied by household income or expenditure. Likewise, BIA shows how the initial “pre-intervention” position of individuals is altered by public spending or how well public spending serves to redistribute resources to the poor (van de Walle 1995). Put differently, it estimates how much the income of a household would have to be raised if the household would fully pay for the subsidized public services (Sabir 2003).
Benefit incidence thus depends on the household/ individual behavior on the use of the government service and composition of government spending. Benefit incidence studies also assume that the value to consumers of a public service can be identified by the cost of providing it. They then assign benefits to the users of the service ranked by some agreed measure of current welfare. This provides a profile of the distribution of the specific category of public spending across the distribution of the chosen welfare indicator (Rosario et al, 2008).
Chapter Summaries
1. General Overview: This chapter introduces the role of government subsidies in addressing poverty and defines the tool of Benefit Incidence Analysis (BIA) for monitoring social spending.
2. Research Questions: This chapter outlines the core inquiries regarding who benefits from social welfare interventions and how these benefits are measured, supplemented by specific research objectives.
3. Methodology of Benefit Incidence Analysis: This chapter explains the theoretical framework and the four-step process used to calculate how public spending is distributed across different income classes.
4. Empirical Evidence: This chapter provides the data analysis, including income distribution patterns, the effects of public spending on specific functional areas, and the resulting post-expenditure income distribution.
5. Policy Recommendation: This chapter provides strategic suggestions for the government to better target subsidies toward low-income populations and improve equity in education and health service delivery.
Keywords
Benefit Incidence Analysis, BIA, Public Spending, Thailand, Education Spending, Health Spending, Poverty Eradication, Income Distribution, Gini Coefficient, Social Welfare, Government Subsidies, Household Income, Equity, Progressivity, Economic Development.
Frequently Asked Questions
What is the core subject of this research paper?
The paper examines the benefit incidence of public spending on education, health, and social welfare in Thailand using 2005 data.
What are the primary thematic areas covered?
The study focuses on income distribution by class, the distributional effects of public functional spending, and post-expenditure changes in welfare.
What is the primary objective of this study?
The objective is to analyze how government subsidies for public services affect the income distribution of different population quintiles and whether these interventions are truly pro-poor.
Which scientific method is utilized for the analysis?
The author employs Benefit Incidence Analysis (BIA), which involves calculating the unit costs of public services and distributing these benefits across income groups to assess progressivity.
What topics are discussed in the main body?
The main body details the methodology, analyzes expenditure patterns by household characteristics, presents empirical evidence on education and health spending, and evaluates the resulting Gini coefficient shifts.
Which keywords characterize this research?
Key terms include Benefit Incidence Analysis, Public Spending, Thailand, Gini Coefficient, social welfare, and income distribution.
How does tertiary education spending affect inequality according to the findings?
The findings suggest that tertiary education spending tends to be pro-rich, often widening inequality, which contrasts with the more progressive results found in primary and secondary education.
What is the conclusion regarding health care spending?
The study concludes that government intervention in health care is currently pro-rich, with the highest income bracket receiving a significantly larger share of the allocations than the lowest income groups.
- Citation du texte
- Joseph Ato Forson (Auteur), 2013, Benefit Incidence of Public Education, Health and Welfare spending in Thailand, Munich, GRIN Verlag, https://www.grin.com/document/213306
