Poverty and deprivation among children in Eastern Europe and Central Asia

Although there is now a large body of literature on poverty in the countries of Eastern Europe and Central Asia, there remains a dearth of comparative analysis of child poverty and wellbeing. This article uses household survey microdata for the period 2001–2003 to compare absolute poverty, relative poverty, material deprivation and participation in schooling among children in five countries: Albania, Bulgaria, Moldova, Russia and Tajikistan. The analysis shows that low absolute levels of household consumption are associated with other deprivation indicators and with children's participation in schooling. The article also highlights the usefulness of relative poverty measures that effectively identify children at risk of exclusion in even the poorest countries in the region. The article concludes by arguing that household consumption is a good indicator of child poverty and deprivation in the region, and that relative poverty measures should be more widely used in monitoring global targets for poverty reduction.     

The impact of child benefits on single mother poverty: Exploring the role of targeting in 15 European countries

Single mothers are vulnerable to living in poverty. The question of how to safeguard the economic status of single mothers in a context of increasing dual earnership is a crucial one. In the present study we addressed this issue by investigating the impact of child benefits on the poverty risk of single mothers in 15 European countries. We focused in particular on the design of child benefits and investigated whether targeting towards single mothers was associated with better poverty reduction. In doing so, we combined information on statutory child benefit entitlement with an empirical analysis of poverty reduction using survey data. We found that: (i) both spending effort and targeting are important to explain the effectiveness of child benefits in reducing single mother poverty; (ii) targeting is related to higher levels of poverty reduction independent of spending effort; yet (iii) it matters how targeting is done.     

Children in Poverty: Do State Policies Matter?

Objective . Variations in childhood poverty are primarily responsive to changes in family structure and economic conditions. Some research also suggests that federal and state programs may help alleviate poverty among children. This research incorporates measures of family characteristics, economic conditions, and policy variables in estimating changes in childhood poverty among the U.S. states. Methods . The research design is a pooled time series for all 50 states for the years 1987–1996. Results . Economic and family circumstances indeed are the major forces affecting children in poverty among the states. The unemployment rate for females, the percentage births to unmarried mothers, and the percentage of single-parent families are especially useful estimators. Public policies are important as well: the state or federal minimum wage, Aid to Families with Dependent Children/food stamp payments, the Earned Income Tax Credit, and two measures of state child support effort. Conclusions . Although at times controversial, actions by the states and federal government can help reduce childhood poverty among U.S. states.     

Poverty,Government Policy and Public Opinion in Britain and Israel: A Comparative Analysis

What are the effects of public opinion on social welfare policies? To what extent is increased financial strain associated with stronger support for anti‐poverty policies? This article tests welfare state theory by comparing poverty, government policy and public opinion on poverty in the UK and Israel, based on rich and detailed comparable survey data on the conditions of the poor in both countries. The results show that, despite similar levels of income poverty and inequality, the poor have a considerably lower standard of living in Israel than the UK. There is considerably greater public support for the poor in Israel but limited government action to end poverty, whereas in the UK there is more limited public support for the poor but significant government action on poverty and exclusion. In both countries there appears to be only a limited connection between social solidarity with the poor and the political elite's rhetoric and action.     

Structural pressures, social policy and poverty

The purpose of this article is twofold. The first aim is to examine 15 OECD countries from the point of view of the so-called third-generation studies, analysing if the development of poverty and income transfers has been uniform in countries classified under the same welfare state models. This has been done to test how appropriate it is to use welfare state models as an analytical tool in comparative welfare state research. The second aim is to examine the effect of different structural factors on poverty and income transfers. Obtained results indicate that two demographic variables studied behave somewhat differently. The share of older people in the population is – not very surprisingly – connected to an increase in income transfers. In the case of younger population groups, the results are the opposite. The results show that the greater the proportion of older people in the population, the lower the poverty rates. Social policy has in many countries consisted primarily of pension policy, and investments in the elderly population are now beginning to bear fruit. Good pension schemes diminish the immediate poverty risk of older people. As a consequence of their increased well-being, the overall poverty rate will fall. In addition to demographic factors, the results indicate that the unemployment rate is connected, on the one hand, to growth in income transfers and, on the other hand, also to increases in poverty. However, unemployment's effect on poverty is not straightforward. The direct effect is indeed an increase in poverty but, if income transfers are taken into account, the indirect effect is a decrease in poverty, since unemployment increases income transfers (unemployment benefits), which on their side alleviate poverty.     

Causal dynamics of poverty reproduction in EU countries

This study investigated causal mechanisms of poverty reproduction in EU countries by placing emphasis on the parental background effect on sons’ poverty risk after having controlled for endogeneity among observable and non‐observable effects of the involved mechanisms. The countries under investigation were old EU member states representing the four welfare regimes in the EU. Having employed path models and utilised EU‐SILC 2005 data, the analysis yielded no statistically significant direct effect of parental background on sons’ poverty risk in Denmark. Greece, however, exhibited a statistically significant and quite strong direct effect. Germany and the United Kingdom stood in‐between. Moreover, the analysis found indirect channels through which the parental background affects sons’ poverty risk. These findings are expected to enrich the academic discourse and inform the policy‐making process on poverty reproduction and social protection in the EU.     

Poverty and family structure effects on children's mathematics achievement: Estimates from random and fixed effects models

As children grow up, they may encounter changing family structures and poverty status. Any attempt to measure the effects of these statuses on children's school achievement runs the risk of spurious effects due to child- and family-heterogeneity. An analytic strategy for avoiding these spurious effects is to use longitudinal data on families, children, and their academic achievement to estimate random coefficient growth-curve models in which a large number of causally prior control variables are allowed to impact both the intercept and slope of the child's achievement trajectory, while poverty and family structure at each point in time enter the model as time-varying covariates. An even more powerful strategy is to use Allison's [Allison, P. D. (2005). Fixed effects regression methods for longitudinal data using SAS. Cary, NC: SAS Institute, Inc.] “hybrid” version of this model, in which a fixed-effects specification differences away all unchanging child and family characteristics. We use CNLSY79 data to estimate both types of models for the effects of poverty status and family structure on children's mathematics achievement between ages 5 and 14. We find that poverty status exerts a modest, statistically significant negative effect on math achievement, but only among younger children. The correlation between family structure and children's mathematics achievement is largely spurious, due instead to child- and family-heterogeneity on causally prior variables.     

The Population's Confidence in the Child Protection System – A Survey Study of England,Finland, Norway and the United States (California)

This article examines the confidence the population (N = 4,003) has in the child welfare system in four countries – England, Finland, Norway and the USA (California). We find that about half or less of the population reports having confidence in the system, which is slightly higher than the confidence in the civil servants in the same countries. The Nordic countries display more confidence in the child welfare system than the Anglo‐American countries. The similarity between the countries is, however, greater than anticipated. As for independent variables that can shed light on differences in confidence levels, we find three variables to be related to a higher confidence level, and these are a left wing political orientation, lower age, and higher education. This study contributes in filling a knowledge gap on studies about trust in the child welfare system, but we emphasize that we have studied an aspect of trust that rests on the population's impressions of a system, and not their substantial knowledge about, or identification with, this system.     

Does the twin deficit hypothesis hold in the OECD countries under different real interest rate regimes?

This paper explores the validity of the twin deficit hypothesis in selected 25 OECD countries with annual data for 2005–2016 by considering different real interest rate regimes. A non-dynamic panel threshold model, introduced by Hansen (1999), is employed. The novelty of the empirical findings from the present study is that there exists a non-linear relationship between the budget deficit and the trade balance, which is driven by a critical threshold level in the real interest rates. The findings suggest that twin deficit hypothesis holds only under the low real interest rate regime, that is, rises in budget deficits lead to deteriorations in the trade balance when the real interest rate is below the threshold level. When the high real interest rate (i.e. above-the-threshold) regime is concerned, increasing budget deficits give rise to improvements in the trade balance, a finding consistent with the twin divergence hypothesis. Thus, the effect on the trade balance of an expansionary fiscal policy that worsens the budget balance reverses substantially depending on the threshold level of the real interest rates. The major policy implication of this paper is that the policy makers in the selected OECD countries should pay a greater attention to fiscal discipline in order to prevent the trade balance from worsening, because the majority of the countries fall into the low real interest rate regime over the recent years of the sample period (i.e. between 2010 and 2016).     

Remittances,financial development and poverty reduction in Sub-Saharan Africa: Implications for post-COVID-19 macroeconomic policies

To design and implement effective post-COVID-19 macroeconomics policies to tackle poverty in sub-Saharan Africa (SSA), policymakers need to understand the factors shaping poverty in the region. This paper investigates the effect of international remittances and financial development on poverty alleviation in 44 sub-Saharan African SSA countries from 2010 to 2019. The instrumental variable generalised method of moment technique results indicated that while remittances increase poverty, financial development contributes significantly to poverty reduction. The results consistently revealed that remittances increase both male and female poverty rates, while financial development significantly reduces male and female poverty rates. Other factors such as economic growth, foreign direct investment, and trade openness contributed significantly to reducing poverty. In contrast, government expenditure and foreign aid were found to increase poverty rate in SSA. These results are robust to the Lewbel two-stage least squares estimator. The practical implications of these findings for post-COVID-19 macroeconomic policies in SSA are discussed.     

Principles and Practicalities for Measuring Child Poverty

This paper has three objectives. The first is to discuss the major issues involved in defining and measuring child poverty. The choices that must be made are clarified, and a set of six principles to serve as a guide for public policy are stated. The second objective is to take stock of child poverty and changes in child poverty in the majority of OECD countries since about 1990 when the Convention on the Rights of the Child came into force. Finally, the third objective is to formulate a number of suggestions for the setting of credible targets for the elimination of child poverty in the rich countries. This involves a method for embodying the ideal of children having priority on social resources into a particular set of child poverty reduction targets, it involves the development of appropriate and timely information sources, and finally it involves the clarification of feasible targets that may vary across the OECD.     

Low income and ‘poverty lines’ in Norway: a comparison of three concepts

Borgeraas E, Dahl E. Low income and ‘poverty lines’ in Norway: a comparison of three concepts
Int J Soc Welfare 2010: 19: 73–83 © 2008 The Author(s), Journal compilation © 2009 Blackwell Publishing Ltd and the International Journal of Social Welfare. In this article we address the question of how well three concepts of ‘poverty’ correspond with each other. We have compared three different measures of ‘poverty’ in Norway: income poverty and two measures of a minimum budget standard, one scientifically and one politically defined. The three measures rest on different underlying concepts, serve different purposes and yield significantly different poverty lines. If followed by the municipal social services, the governmental norms for social benefits will, paradoxically, leave the beneficiaries in income poverty as defined by that same government. The most generous poverty line of all three measures is provided by the minimum budget standard developed by the National Institute for Consumer Research in Norway, which rests on the assumption that a household's income has to give a sustainable financial situation in the longer run. Neither of the two other poverty measures have this property. All numbers pertain to the year 2005. Some political and practical implications of the findings are discussed.     

The breadth and depth of multidimensional child poverty in China

This study analysed the multidimensional child poverty status in China between 1989 and 2009, using the China Health and Nutrition survey data. Based on the Alkire–Foster method for measuring poverty, a multidimensional poverty index was calculated and further decomposed into seven deprivation dimensions: nutrition, water, sanitation, health, education, shelter and information. The study has four main findings: (1) The multidimensional child poverty rate in China declined gradually where the sanitation facility was most severely deprived; (2) The poverty gap between rich and poor provinces remained over the years; (3) The urban–rural disparity was reduced in all seven dimensions; (4) The poorest of the poor climbed out of ultra‐poverty and became the moderately poor or even the non‐poor.     

A price worth paying? Accountability,red tape and the regulation of affordable housing

Although it is not a pressing social problem in the same way as, for example, poverty, child abuse, or climate change, red tape causes frustrations for many working in public and private sector organisations, perhaps even more than for the ordinary citizen dealing with large government agencies. This paper will explore some dimensions of this contentious issue. It will consider the positive view of regulation advanced by regulation theorists, and some qualitative researchers associated with this tradition. Drawing on a qualitative research study concerning the regulation of affordable housing in Australia, it examines the nature of administrative burdens. It is suggested that three factors lead to the perception of red tape: whether regulation is seen as making a difference to services beyond accountability; whether the measures used are meaningful; and the resources available for compliance. Qualitative researchers can help those in government seeking to reduce administrative burdens by supplying realistic accounts that address the views and experiences of those subject to regulation.     

Child deprivation in Australia: A child‐focused approach

Income‐based studies of child poverty treat children and young people as effectively invisible and determine the poverty status of families or households on the basis of information that is provided by, and is primarily about, adults. In contrast, the consensual deprivation approach provides a way of developing measures that reflect the views of children about what constitutes poverty and can be applied to data that children themselves provide. This paper extends earlier Australian studies of adult deprivation by applying a similar approach to children aged 11–17 attending a NSW government high school. Focus groups were conducted with children to help identify items regarded as essential for all children, and the results informed the development of a survey that was completed by over 2,600 students. The survey asked about 24 items, 18 of which were retained after statistical testing, and these items form the basis of the deprivation analysis. The findings indicate that a substantial proportion of survey respondents experience either or both of material deprivation and social exclusion. A new Child Deprivation Index (CDI) is developed and used to compare the circumstances of different groups, highlighting some of the factors that are associated with higher levels of deprivation and providing some initial pointers to possible underlying causes.     

Social income transfers and poverty: A cross‐country analysis for OECD countries

Caminada K, Goudswaard K, Koster F. Social income transfers and poverty: a cross‐country analysis for OECD countries Poverty alleviation is an important policy objective in developed welfare states. This article reports on a study of the association between social transfer policies and poverty. It has been claimed in several studies that based on a simple bivariate approach, high social effort goes along with low poverty levels. Empirical studies have also found that factors such as demographic and economic conditions may also have an influence on poverty, affecting the relationship between social spending and poverty. In the present study, we empirically analysed the impact of social expenditure on poverty for the period 1985–2005, and in contrast to previous research, demographic and macroeconomic differences across countries were controlled for. Quite a strong negative relationship was still found between the level of social expenditure and poverty. Ageing and unemployment rates were found to have some explanatory power but without affecting the association between social transfers and poverty. Thus, the multivariate approach chosen in this study confirms the results of earlier research.     

Agricultural economic reforms,gender inequality and poverty in Senegal

In Senegal, as in many developing countries, the agricultural sector plays a key role in the economy. In addition to supplying food, agriculture is the most important source of employment, especially for women. Through the Plan for an Emerging Senegal (PES), the Senegalese government is implementing an ambitious financing plan to improve the productivity of the agricultural sector and enhance employment opportunities for women. Our study assesses the impact of two PES measures (investment subsidies and an increase in production subsidies for the agricultural sectors) on economic growth, women's employment, poverty and inequality using a dynamic computable general equilibrium model linked to a microsimulation model. The results show that both policies have generally positive effects in reducing poverty and gender inequalities. However, investment subsidies in the agricultural sectors have stronger impacts in reducing gender inequality and poverty in the long term.     

Beyond Piketty: A new perspective on poverty and inequality in India

The socio-economic literature has focused much on how overall inequality in income distribution (frequently measured by the Gini coefficient) undermines the “trickle down” effect. In other words, the higher the inequality in the income distribution, the lower is the growth elasticity of poverty. However, with the publication of Piketty’s magnum opus (2014), and a subsequent study by Chancel and Piketty (2017) of evolution of income inequality in India since 1922, the focus has shifted to the income disparity between the richest 1% (or 0.01%) and the bottom 50%. Their central argument is that the rapid growth of income at the top end of millionaires and billionaires is a by-product of growth. The present study extends this argument by linking it to poverty indices in India. Based on the India Human Development Survey 2005–12 – a nationwide panel survey-we examine the links between poverty and income inequality, especially in the upper tail relative to the bottom 50%, state affluence (measured in per capita income) and their interaction or their joint effect. Another feature of our research is that we analyse their effects on the FGT class of poverty indices. The results are similar in as much as direction of association is concerned but the elasticities vary with the poverty index. The growth elasticities are negative and significant for all poverty indices. In all three cases, the disparity between the income share of the top 1% and share of the bottom 50% is associated with greater poverty. These elasticities are much higher than the (absolute) income elasticities except in the case of the poverty gap. The largest increase occurs in the poverty gap squared – a 1% greater income disparity is associated with a 1.24% higher value of this index. Thus the consequences of even a small increase in the income disparity are alarming for the poorest.     

Professionals’ decision‐making in cases of physical punishment reported to child welfare authorities: does family poverty matter?

The influence of family poverty on professionals’ decision‐making in cases of physical punishment reported to child welfare agencies was examined. The sample was drawn from the Canadian Incidence Study of Reported Child Abuse and Neglect. The influence of five indicators of poverty on six investigation outcomes was assessed. In addition, a Poverty Index was constructed from these five variables to assess whether the family's overall poverty status influenced investigation outcomes. The outcome variables examined were case substantiation, provision of ongoing child welfare services, referrals to child and family support programmes, out‐of‐home placement, applications to child welfare court and police involvement. Together, the poverty indicators did not account for more than 6% of the explained variation in any of the outcome variables, nor did the magnitude of the Poverty Index affect the likelihood of any of the investigation outcomes. These findings suggest that family poverty does not influence professionals’ decision‐making in cases of physical punishment reported to child welfare agencies in Canada. The findings have implications for the ongoing development of policy aimed at reducing parental use of physical punishment.     

False positives or hidden dimensions: What can monetary and multidimensional measurement tell us about child poverty in Vietnam?

Roelen K, Gassmann F, de Neubourg C. False positives or hidden dimensions: what can monetary and multidimensional measurement tell us about child poverty in Vietnam? A widely used division between poverty measures based on conceptual underpinnings and analytical outcomes is that of monetary versus multidimensional measures. Comparisons of the use and outcomes of the two methods have shown that they predominantly provide different pictures of poverty in terms of size, rank and group. This article contributes to the long‐standing and ongoing debate on poverty measurement by comparing the use of monetary and multidimensional poverty approaches, with a special focus on children in Vietnam and extending the empirical analysis beyond conventional methods. In addition to investigating whether poverty outcomes or groups of identified poor children differ when using the two different poverty measures, we also investigated the drivers underlying these differences. Findings confirm a considerable degree of mismatch: both poverty measures proved to be inadequate proxies for the other and factors underlying the identification by either one or both of the measures differed.