Poverty regulation effectiveness varies by government level in Spain
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Poverty regulation effectiveness varies by government level in Spain

A Banque de France working paper analyzes the effectiveness of poverty-related regulations implemented in Spain between 2007 and 2021. The study finds that the impact of these regulatory measures on regional risk-of-poverty rates depends significantly on the level of government responsible for their enactment.

Mapping Spain's poverty regulations

Researchers systematically classified and quantified 175,204 regulations issued by Spain's Central Administration and Autonomous Regions from 2007 to 2021.

Using textual analysis, the study identified over 7,800 regulatory texts specifically aimed at addressing poverty.

These measures were categorized into targeted interventions, such as those addressing energy poverty or child poverty, and broader poverty-related regulations, including those focused on precariousness, social assistance, or social exclusion.

This comprehensive database provides a novel foundation for assessing regulatory impact on poverty dynamics across the country.

Divergent impacts by government tier

The study employed multivariate regression analysis to evaluate the impact of these regulatory frameworks on regional at-risk-of-poverty rates.

A key finding is that the effectiveness of both targeted and general regulatory measures depends on the implementing government level.

Targeted interventions, such as those for child or energy poverty, effectively reduce poverty risk when enacted regionally, but not centrally.

In contrast, broader regulatory measures, like social protection frameworks, are effective at the national level, but not when adopted by regional authorities.

The analysis examined year-to-year changes in regulation intensity and poverty rates.

Tailoring policy for impact

This study provides crucial evidence for decentralized governance systems, highlighting that effective poverty alleviation requires aligning regulatory design with the appropriate institutional level.

The findings underscore the importance of local adaptation for targeted interventions and national coherence for broad frameworks.

Policymakers must consider these nuances to enhance social impact and public sector accountability.