This study indicates that the strength of the rule of law affects social security expenditure and its financial resources. However, legal origins affect the strength of the rule of law. We use data from 36 member countries of the Organisation for Economic Cooperation and Development. The legal origins affect the rule of law and have different marginal effects on public financial resources. Further, social security expenditures have a correction effect on economic inequality. However, the marginal effect of the social security expenditure on economic inequality differs based on its legal origins. Increasing social security expenditure affects correcting economic inequality to elaborate concerning all legal origins. Particularly in countries that adopted French legal origins, high social security expenditure further improves economic inequality. In contrast, increases in social security expenditures of countries with English legal origins do not improve economic inequality to a large extent. The results of this study suggest that differences in legal origins result in various types of capitalism.

Differences in legal origins result in varieties of capitalism, and this may influence the impact of property rights on entrepreneurship and the relationship between entrepreneurship and economic growth. Therefore, we explored the relationship between entrepreneurship, property rights, and economic growth by examining macro data from 51 countries from 2001 to 2020 and classifying the countries based on their legal origins (English, French, German, and Scandinavian). We obtained data on entrepreneurship from the Global Entrepreneurship Monitor, a research consortium developed by Babson College and the London Business School. The results indicated that entrepreneurship is associated with economic growth in civil law countries rather than in common law countries. In addition, the form of the function between entrepreneurship and property rights differs depending on the legal origin. We observed a rising trend in the association between entrepreneurship and property rights for countries with English and German legal origins, while we noted a gradual quadratic function in the bell curve trend for countries with French legal origin. As for countries with Scandinavian legal origin, we found a negative linear relationship between property rights and entrepreneurial activity. JEL: L26, M13, P14, K15, O47