Abstract: To reduce inequality in income distribution and reduce the poverty social welfare spending in Thailand particularly on education and health services is regarded as one of the effective instruments. Policy makers agree that public subsidies on education and health produce positive externalities and have spill over effect in the society. This research is designed to analyse the effects of public spending of education and health on income distribution which examine the pre-expenditure and post-expenditure income distribution in Thailand. It follows the benefit incidence analysis (BIA) that is a method of computing the distribution of public expenditure across different demographic groups, such as women and men. The procedure involves allocating per unit public subsidies (for example, expenditure per student for the education sector) according to individual utilization rates of public services. This paper aims at examine who are the real beneficiaries from the government expenditure. The study uses the quantitative method where data are used of 2010. From the benefit incidence analysis on the public expenditure on education it seems that education system is pro-poor and health care system are not pro-poor rather pro-rich. The poor people can be benefited more from the primary and secondary education and less benefited from the tertiary education. However, overall expenditure on education is favourable to the poor which proves from the income share of household. In this perspective, The Thai government should emphasize on higher education for poor by providing special loan created only for them and universities should also be adopted the policy so that poor income class people can access the opportunity. Government can increase the charge and fees for private higher education where normally rich households send their children. By doing so, government can earn more and spend for poor people. Regarding the healthcare system, Thai government should emphasize on preventive care than curative from which the whole nation will be benefitted. The programmes should be continued and more expenditure should be added to this. Government should charge tax on private healthcare system that will help collect more money and invest for the poor people. Since rich tends to go to the private hospitals, government will take money from the rich and spend for poor people. This process will minimize the income inequality.
Table of Contents
1. Introduction
2. Objective of the Study
3. Significance of the Research
4. An Overview of Education System and Health Care Service in Thailand and Public Spending
4.1 Education System in Thailand
4.2 Education Spending in Thailand
4.3 Health Care System in Thailand
4.4 Healthcare Spending in Thailand
5. Research Methodology Used
6. Data Collection
7. Limitations of the Study
8. Benefit Assumption of Public Expenditure on Education
9. Benefit Assumption of Public Expenditure on Health
10. Empirical Result: Thailand Perspective
10.1 The distributional effects of public education expenditure
10.2 The Distributional Effects of Public Health Spending
11. Methods of Calculating Public Expenditure Incidence (Benefit)
11.1 Education Expenditure
11.2 Health Expenditure in Thailand
12. Income distribution before and after expenditure
13. Gini coefficient and Income distribution before and after public expenditure
14. Lowrenz Curve to Measure Income Inequality in Thailand
15. Policy Recommendation
15.1 Recommendations for Education
15.2 Recommendations for healthcare
16. Conclusion
Research Objectives and Themes
The research paper aims to examine the distributional effects of public spending on education and health services in Thailand, specifically investigating whether these expenditures effectively reduce income inequality or benefit specific socio-economic groups disproportionately.
- Analysis of public expenditure distribution across different income quintiles.
- Evaluation of pre- and post-expenditure income distribution using Gini coefficients.
- Assessment of the progressive or regressive nature of primary, secondary, and tertiary education spending.
- Investigation into the distributional impact of public health care spending on various income classes.
- Formulation of policy recommendations to improve the pro-poor impact of social welfare spending.
Excerpt from the Book
Education System in Thailand
Thai government emphasizes on education and has adopted policies particularly after the enactment of the National Education Act of 1999 which shows the way of taking reform initiatives. Following the reform activities, there are various types and methods of learning offered to learners regardless to their economic, social and cultural backgrounds. Education approaches provided in Thailand are classified as formal, non-formal, and informal. All types of education can be provided by educational institutions as well as learning centres organized by individuals, families, communities, professional bodies, religious institutions, welfare institutes; and other social institutions (OEC 2007). However, formal institutions create a significant change in the society for which government establishes institutions and spend more. Since the proportion of poor and middle income class is quite noticeable, Thai government tries to minimize the gap between rich and poor by taking measures for initiatives.
Summary of Chapters
Introduction: Provides the context of social welfare spending in Thailand and introduces the methodology of Benefit Incidence Analysis (BIA).
Objective of the Study: Defines the research focus on examining the distribution of public benefits in education and health sectors across different income groups.
Significance of the Research: Highlights the practical and theoretical importance of analyzing public spending for policy makers and administrative students.
An Overview of Education System and Health Care Service in Thailand and Public Spending: Details the evolution of Thailand's education and health policies, including major reforms and public expenditure trends.
Research Methodology Used: Explains the BIA process and the classification of beneficiaries based on income levels.
Data Collection: Outlines the secondary sources used, including government statistics and academic reports.
Limitations of the Study: Acknowledges the scope restrictions, such as the exclusion of private sector education and health quality assessments.
Benefit Assumption of Public Expenditure on Education: Describes the assumption that education benefits are distributed proportionally to student enrollment across income classes.
Benefit Assumption of Public Expenditure on Health: Explains the distribution of health benefits based on patient utilization of public facilities.
Empirical Result: Thailand Perspective: Presents the primary findings on how education and health spending impact different income groups.
Methods of Calculating Public Expenditure Incidence (Benefit): Outlines the mathematical approach for allocating budgets across basic/higher education and primary/secondary health programs.
Income distribution before and after expenditure: Compares household income metrics before and after the inclusion of public expenditure benefits.
Gini coefficient and Income distribution before and after public expenditure: Analyzes the change in inequality levels using Gini index values.
Lowrenz Curve to Measure Income Inequality in Thailand: Utilizes Lorenz curves to visually represent the impact of public spending on wealth distribution equality.
Policy Recommendation: Offers targeted suggestions for improving the equity of education and health spending.
Conclusion: Synthesizes the findings, concluding that while some areas are pro-poor, overall spending impacts need refinement to better address income inequality.
Keywords
Benefit Incidence Analysis, Thailand, Public Expenditure, Income Inequality, Gini Coefficient, Lorenz Curve, Education Spending, Health Care Spending, Social Welfare, Redistribution, Pro-poor, Household Income, Public Policy, Economic Reform, Quintiles
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on evaluating whether public expenditure on education and health services in Thailand effectively reduces income inequality among different socio-economic groups.
What are the primary themes addressed?
The study examines the distributional effects of government spending, the Gini coefficient before and after public expenditure, and the effectiveness of current social policies in Thailand.
What is the main research objective?
The primary goal is to determine if public benefits are equitably distributed or if they favor richer segments of the population, thereby providing a basis for future policy recommendations.
Which methodology does the author employ?
The author uses Benefit Incidence Analysis (BIA), a standard economic method that computes how public expenditure is shared across different demographic groups based on utilization rates.
What topics are discussed in the main body?
The body covers historical education and health reforms, empirical analysis of spending data, income distribution calculations, and the application of Gini coefficients and Lorenz curves.
Which keywords best characterize the study?
Key terms include Benefit Incidence Analysis, Income Inequality, Gini Coefficient, Education and Health Spending, and Social Welfare policy.
How does the author define the difference between progressive and regressive spending in this context?
Progressive spending refers to programs that benefit lower-income groups more than higher-income groups, whereas regressive spending disproportionately benefits the wealthy, often seen here in tertiary education.
What specific finding does the author mention regarding higher education?
The research finds that tertiary education spending is regressive, as a significant majority of benefits are captured by the highest income earners, exacerbating the gap between rich and poor.
How is the Gini coefficient used in this study?
The Gini coefficient is calculated to measure income inequality before and after the inclusion of public expenditure benefits, serving as a quantitative indicator of whether government spending is pro-poor or pro-rich.
What are the key policy recommendations for the health sector?
The author recommends prioritizing preventive care, introducing differentiated charges for urban and rural residents, and taxing private healthcare to subsidize services for lower-income households.
- Quote paper
- Mohammad Rezaul Karim (Author), 2013, Benefit Incidence Analysis on Thailand, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/213197
