Reconfigurations of Distributive Social Policies and their Effects on Household Living Conditions (2023-2024)

Abstract

After the new government took office in December 2023, there was a reorientation not only of the economic regime but also in the ‘social policy’ regime. This article analyzes how the adjustment in social investment and its change in composition affected household incomes and living conditions. Public budget execution data and microdata from the Permanent Household Survey are used. The article finds evidence of procyclical behavior in social policy incomes during the worst phase of the economic shock in the first half of 2024, a reduction in the impact of social spending on poverty, and increasing reliance on assistance programs, with a focus on extreme poverty.