Impacts of women's political and economic empowerment on social protection expenditures in the EU

Abstract

Purpose – This study investigates the impact of women's political and economic empowerment on social protection expenditures across 27 European Union countries (2006–2023). Design/methodology/approach – Using fixed-effects panel regressions with Driscoll–Kraay standard errors, we explore both linear and conditional (interaction and non-linear) effects of selected dimensions of women's empowerment on shaping total social welfare spending and welfare-chosen functions. Findings – Findings reveal subtle differences in the overall impact. When considering linear effects, greater women's political and managerial empowerment, and narrowing gender pay gap, are associated with increased total welfare spending, and health and elderly functions, while only the gender pay gap significantly explains spending on the family/children function. Uncovered U-shaped relationships suggest that political and economic women's representation must reach a threshold before exerting a positive effect on social spending. Moreover, political empowerment interacts significantly with income inequality, indicating that its effect is stronger in more unequal societies. Originality/value – Overall, the study contributes to a more refined understanding of how political and economic empowerment influences welfare systems in diverse ways, highlighting the importance of considering empowerment as a multidimensional and context-sensitive factor in shaping inclusive and equitable social protection policies.