Linking taxation and social protection: Evidence on redistribution and poverty reduction in Ethiopia

Although redistribution results from the simultaneous effects of taxes and transfers, analyses of their distributional effects in low‐income countries have largely been undertaken from singular perspectives. This article jointly assesses the distributional effect of taxes and transfers (through social protection) using Ethiopia as a case study. We find that Ethiopia's flagship social protection programme is more effective than income taxation in achieving poverty reduction, while neither policy achieves a sizeable reduction in overall inequality. We also find that Ethiopia does not currently have the capacity to close the poverty gap or to fully fund its main safety net programme using domestic income sources alone.     

Low‐Income Students and College Attendance: An Exploration of Income Expectations*

Objectives. Some have hypothesized that unrealistic expectations regarding their futures may explain the weak link between expectations and realizations among low‐income (particularly minority) youth. Unfortunately, there is little evidence characterizing students' expectations around the time that they make college decisions that would allow one to study this hypothesis. Methods. In this exploratory article, I analyze data on income expectations from a small sample of low‐income minority high school seniors in Baltimore City, MD; and use data from Dominitz and Manski's sample of higher‐income white students in Madison, WI, and the NELS88 for comparisons. Results. I find little evidence that the income expectations of lower‐income minority students are so different from those of higher‐income students. Rather, the expected returns to postsecondary education appear similar between the two samples of high school seniors. Analysis of a nationally representative sample of high school seniors suggests that lower‐income students do not place less weight on expected economic returns to college when making their plans than do more advantaged students, although low‐income students are less able to translate their college plans into actual college attendance. Conclusions. These results suggest that differing income expectations do not explain the weaker relationship between expectations and educational attainment among low‐income students.     

On Inter‐ and Intra‐Individual Redistribution of the Welfare State*

Objective. The redistributive effect of the welfare state is traditionally measured by comparing the gross and net distribution of annual income among adults. This standard approach does not account for the fact that a large share of the taxes paid by adults are paid back to the very same individuals later in life. The objective of this article is to examine the factors that determine the difference between redistribution according to the standard approach and redistribution of lifetime incomes. I also discuss under what circumstances intra‐individual redistribution is beneficial for low‐income earners. Methods. A formal model of a simple welfare state in a society with low‐ and high‐income earners is used to describe inequality of gross and net income among adults and for complete lifetime incomes. The model is calibrated with data describing the Swedish welfare state. Results. Theoretically, the redistribution of lifetime income can be bigger or smaller than the redistribution indicated by the standard approach. Swedish data suggest that most welfare states are more redistributive when a lifetime perspective is used compared to the standard approach. Conclusions. Most of the redistribution carried out by modern welfare states is so‐called intra‐individual redistribution. Compared to the situation that would arise without the welfare state, intra‐individual redistribution is likely to be favorable for low‐income earners because it compensates for inequalities in the distribution of assets and access to capital markets.     

Income redistribution in 20 countries over time

In most OECD countries, the gap between rich and poor has widened over the past decades. The present study analysed whether and to what extent direct taxes and social transfers contribute to this trend. The study contributes to the literature by disentangling several parts of fiscal redistribution in a comparative setting. We used micro‐data from the Luxembourg Income Study to examine household market inequality and redistribution from transfers and taxes for 20 countries from the mid‐1980s to the mid‐2000s. The contribution of each programme was estimated using a sequential accounting budget incidence decomposition technique. We observed a sizeable increase in primary household inequality, but tax‐benefit systems have offset two thirds of the average increase in primary income inequality. The public old‐age pensions attributed 60 per cent to the increase in redistribution, while social assistance accounted for 20 per cent. Direct taxes slowed down redistribution by 16 per cent.     

Family Transitions,Economic Status,and Voter Turnout Among African‐American Inner‐City Women*

Objectives. We examine voter turnout of inner‐city African‐American mothers, many of whom are single parents and endure long‐term, economic hardship. Previous research suggests that income is a more important factor among these groups than in the general population. We seek to understand the interplay of family structure, income, and voter turnout. Methods. We explore these ideas using panel data on 754 mothers living in Chicago and interviewed as part of the 1967–1976 Woodlawn Community Study. Results. We find that marital status has no effect when women are younger but over time single parents' turnout falls behind that of married parents. This is primarily due to factors related to income and income change. Conclusions. Single mothers have lower rates of participation and, given the high rates of single parenthood in segregated inner‐city neighborhoods, this substantially diminishes the political voice of the nation's poor, contributing to class bias in the electorate.     

Who Lives on the Wrong Side of the Environmental Tracks? Evidence from the EPA's Risk‐Screening Environmental Indicators Model*

Objective. We analyze the social and economic correlates of air pollution exposure in U.S. cities. Methods. We combine 1990 Census block group data for urbanized areas with 1998 data on toxicity‐adjusted exposure to air pollution. Using a unique data set created as a byproduct of the EPA's Risk‐Screening Environmental Indicators Model, we improve on previous studies of environmental inequality in three ways. First, where previous studies focus on the proximity to point sources and the total mass of pollutants released, our measure of toxic exposure reflects atmospheric dispersion and chemical toxicity. Second, we analyze the data at a fine level of geographic resolution. Third, we control for substantial regional variations in pollution, allowing us to identify exposure differences both within cities and between cities. Results. We find that African Americans tend to live both in more polluted cities in the United States and in more polluted neighborhoods within cities. Hispanics live in less polluted cities on average, but they live in more polluted areas within cities. We find an extremely consistent income‐pollution gradient, with lower‐income people significantly more exposed to pollution. Conclusions. Communities with higher concentrations of lower‐income people and people of color experience disproportionate exposure to environmental hazards. Our findings highlight the importance of controlling for interregional variation in pollution levels in studies of the demographic correlates of pollution.     

The Racial Structure of Economic Inequality in the United States: Understanding Change and Continuity in an Era of “Great Divergence”*

The “great divergence” of America's rich from its middle class and poor has led some observers to see a country increasingly stratified by income and wealth, more so than by race. In this article, the first in a two‐part series, we argue that this conclusion overlooks the persistent importance of the racial “structure” of inequality. A decomposition of income inequality between 1980 and 2010 using the Theil Index shows that inequality between racial groups accounts for a rising share of total income inequality over this period nationally and in most states. We also demonstrate that within‐state trends in the between‐race component of inequality are not fully accounted for by trends in income inequality and racial diversity per se. These findings lay the groundwork for a forthcoming companion piece in Social Science Quarterly that shows that between‐race inequality is strongly linked to welfare policy outcomes in the United States.     

Parental emotion regulation strategies and parenting quality predict child internalizing symptoms in families experiencing homelessness

Adaptive emotion regulation (ER) in parents has been linked to better parenting quality and social–emotional adjustment in children from middle‐income families. In particular, early childhood may represent a sensitive period in which parenting behaviors and functioning have large effects on child social–emotional adjustment. However, little is known about how parent ER and parenting are related to child adjustment in high‐risk families. In the context of adversity, parents may struggle to maintain positive parenting behaviors and adaptive self‐regulation strategies which could jeopardize their children's adjustment. The current study investigated parents' own cognitive ER strategies and observed parenting quality in relation to young children's internalizing and externalizing problems among families experiencing homelessness. Participants included 108 primary caregivers and their 4–6‐year‐old children residing in emergency shelters. Using multiple methods, parenting and parent ER were assessed during a shelter stay and teachers subsequently provided ratings of children's internalizing and externalizing difficulties in the classroom. Parenting quality was expected to predict fewer classroom internalizing and externalizing behaviors as well as moderate the association between parent ER strategies and child outcomes. Results suggest that parenting quality buffered the effects of parent maladaptive ER strategies on child internalizing symptoms. The mediating role of parenting quality on that association was also investigated to build on prior empirical work in low‐risk samples. Parenting quality did not show expected mediating effects. Findings suggest that parents experiencing homelessness who use fewer maladaptive cognitive ER strategies and more positive parenting behaviors may protect their children against internalizing problems.     

Has the redistributive effect of social transfers and taxes changed over time across countries?

In most Member countries of the Organisation for Economic Co‐operation Development (OECD), the income gap between rich and poor has widened over the past decades. This article analyses whether and to what extent income taxes and social transfers have contributed to this trend. Has the redistributive impact of different social programmes changed over time? We use microdata from the LIS Cross National Data Center in Luxembourg for the period 1982–2014 and study both the total population and the working‐age population. In contrast to the results of some other studies, especially by the OECD, we do not find that redistribution has declined. Tax‐benefit systems around 2013 are more effective at reducing income inequality compared to the mid‐1980s and the mid‐1990s, especially among the total population. Changes in social programmes are not a driver of greater income inequality across the countries included in this study.     

Why do the poor oppose income redistribution? An empirical test on the impacts of nationalism and fatalism

We study the poor’s psychological motivations to oppose income redistribution, relying on social identity and system justification theories. We find that national identification reduces differences between the poor and the rich in terms of attitudes toward income redistribution and self-esteem, by discouraging the poor from supporting redistribution but encouraging them to acquire greater self-esteem. Next, fatalism reduces and increases differences between the poor and the rich in terms of attitudes toward income redistribution and self-esteem, respectively. Yet, a closer look reveals that the responding patterns of the poor and the rich to fatalism are consistent only with the mechanism behind the prediction that concerns self-esteem. That is, fatalism increases support for income redistribution in both groups, whereas it reduces self-esteem only among the poor.     

Three measures of non‐resident fathers' involvement,maternal parenting and child development in low‐income single‐mother families

This study examined the relationships among non‐resident fathers' involvement, mothers' parenting and parenting stress, and children's behavioural and cognitive development in low‐income single‐mother families. Based on the theoretical concepts of father involvement in terms of accessibility, responsibility and interaction, this study operationalizes fathers' involvement with three different measures: (i) fathers' frequency of contact with their children; (ii) fathers' amount of child support payment; and (iii) fathers' quality of parenting. Analyses used the first three waves of longitudinal data from a subsample of single and non‐cohabiting mothers with low income in the Fragile Families and Child Wellbeing Study. Results suggest that non‐resident fathers' child support payment is indirectly associated with both children's behaviour problems and cognitive development. Fathers' parenting is also found to be indirectly associated with children's behaviour problems. The findings further suggest that those estimated associations are transmitted through mothers' parenting. The expected associations between fathers' contact and child outcomes are not found in this sample. The study also discusses the policy and practice implications of its findings.     

Teachers' Perceptions of Conflict with Young Students: Looking beyond Problem Behaviors

Teachers' judgments of relational conflict are unique indicators of children's academic and social adjustment. Using a large, hierarchically nested sample of preschoolers (N = 2282) and teachers (N = 597) this study examines the individual and classroom factors associated with teachers' ratings of conflict, both before and after adjusting for problem behaviors ratings. Over half of the variance in teachers' reports of conflict with children was explained by ratings of children's problem behaviors. However, many children had more (or less) conflict than predicted based on teacher‐rated problem behavior. Older children were more likely to have conflictual relationships with teachers than expected based on their level of problem behavior. Furthermore, teachers who reported more depression and lower self‐efficacy and teachers who were observed to provide less emotional support in the classroom tended to report more conflict with students in their classroom than expected based on levels of problem behaviors.     

Evaluating social assistance reforms under programme heterogeneity and alternative measures of success

This article presents an assessment of welfare reforms under a framework of programme heterogeneity and alternative measures of success. The study focused on a specific programme – Madrid's Ingreso Madrileño de Integración (Madrid Regional Government's Welfare Programme) – which comprises heterogeneous sub‐programmes. We tested whether work‐related sub‐programmes performed better than general activities aimed at improving life skills by analysing the effects on different types of outcomes. We also tried to identify which work‐related sub‐programme worked best. Our results show that intensive employment activities yield remarkably better results than general work‐related schemes or life‐skills activities. However, increasing work participation does not automatically lift participants out of material hardship. Key Practitioner Message: ● Strategies to reduce the dependence of low‐income households on government support by improving employment opportunities; ● Evaluation of alternative work‐related sub‐programmes in welfare policies; ● New evidence on approaches that consider heterogeneous sub‐programmes and different types of outcomes might inform and partially shape the future public policy agenda in the welfare reform debate.     

Socioeconomic status and the dynamics of preferences for income inequality in the United States, 1978–2016

Although considerable evidence indicates that public preferences for income inequality and redistribution vary across socioeconomic groups (i.e., occupation and income), much less is known about the temporal dynamics of these preferences. The purpose of this study is (a) to examine whether the attitudinal distance between managerial/professional workers and unskilled manual workers has changed (converged or diverged) over time and to (b) explore the reasons for and implications of the dynamics of preferences in the past several decades. Using data from the General Social Survey 1978–2016 (23 time‐points; N = 27,211), this study finds that the influence of occupational class has lost some of its significance in shaping public preferences for income inequality and that the declining effect of occupation can be explained in part by the attitudinal convergence between better‐ and less‐educated citizens. Findings suggest that proequality coalitions across educational boundaries play a remedial role in bridging the occupational divide over government redistribution in the United States.     

The effectiveness of Luxembourg's minimum guaranteed income

Using micro‐data for the year 2007, this article analyzes the effectiveness of Luxembourg's minimum guaranteed income (revenu minimum garanti — RMG) social assistance programme. First, we examine the effectiveness of the RMG by comparing the proportion of eligible households based on the different criteria for the years 2007 and 1986, and find that, in 2007, 5.5 per cent of households were eligible versus 3.75 per cent in 1986. A relaxation of the RMG's eligibility criteria implies that more low‐income households should have access to the RMG. As a second measure of programme effectiveness, the article estimates the extent of non‐takeup behaviour among those eligible for the RMG in 2007. It is found that just over 65 per cent of all households potentially entitled to the RMG do not claim. Regression analysis of the potential determinants of non‐takeup behaviour confirms the hypotheses derived from theoretical models in the literature, i.e. that rational motivation, such as the expected net utility from claiming, and stigma, play a major role in explaining levels of non‐takeup.     

‘Pushing buttons‘: an evaluation of the effect of Aboriginal income management on commercial gambling expenditure

The Northern Territory National Emergency Response Act 2007 was a radical intervention into the lives of Aboriginal residents of the Northern Territory, Australia. One of the intervention's key measures was income management – a scheme designed to limit the range of goods and services that may be purchased with social security payments. The aim of income management was to curb 'anti‐social behaviours' such as excessive gambling and alcohol consumption. In this paper, we specifically test the efficacy of income management in reducing the amount spent on commercial gambling. To achieve this we conduct an interrupted time series analysis with deflated monthly electronic gaming machine (EGM) expenditure data from July 2002 to July 2010 for hotels and clubs in the towns of Alice Springs and Katherine. We find a negative association between income management and EGM revenues for only one gambling venue in each town. However, local complexity in the form of segregated markets along temporal, spatial and racial lines, along with other policy confounders, may obscure the effects of the macro‐policy intervention. We conclude by making suggestions for locally‐based responses to problematic forms of risky consumption that may be more sensitive to local geographies.     

Indirect effects of the Family Check‐Up on youth extracurricular involvement at school‐age through improvements in maternal positive behavior support in early childhood

Extracurricular involvement in the school‐age years has widespread potential benefits for children's subsequent socioemotional development, especially for low‐income youth. However, there is a dearth of research on interventions aimed at increasing school‐age extracurricular involvement in low‐income youth. Thus, the present study aimed to test the collateral effect of a brief, family‐focused intervention for low‐income families, the Family Check‐Up, on children's school‐age extracurricular involvement via improvements in maternal positive behavior support (PBS) in early childhood. The sample (n = 630, 50% female, 50% White, 28% Black/African American) represented a subsample of families from the Early Steps Multisite Study. At the age of two, families were randomly assigned to the Family Check‐Up or Women, Infants, and Children Nutritional Supplement Services as usual. Mother‐child dyads participated in observed interaction tasks at child ages 2 and 3 that were subsequently coded to assess PBS. Primary caregivers reported on children's school‐age extracurricular involvement at ages 7.5, 8.5, and 9.5. Results indicated that although there was not a direct path between intervention status and children's school‐age extracurricular involvement, a significant indirect path emerged from intervention group to changes in PBS between ages 2 to 3 to children's school‐age extracurricular involvement. The results are discussed in terms of implications for designing preventive interventions in early childhood that promote extracurricular involvement at school‐age, particularly for children at risk for maladaptive outcomes.     

Imaginary Companions and Young Children's Coping and Competence

Imaginary companions (ICs) are purported to bolster children's coping and self‐competence, but few studies address this claim. We expected that having/not having ICs would distinguish children's coping strategies and competence less than type of companion (i.e., personified object or invisible friend) or quality of child–IC relationship (i.e., egalitarian or hierarchical). We interviewed 72 three‐ to six‐year‐olds and their mothers about children's coping strategies and competence; teachers rated competence. Mothers reported ICs. IC presence and type did not differentiate coping strategies, but children with egalitarian relationships chose more constructive/prosocial coping strategies, and teachers rated them more socially competent than children with hierarchical child–IC relationships. Mothers related ICs to cognitive competence. Findings highlight (1) modest relations between imaginary relationships and coping/competence; (2) distinctions between mothers' perceptions and IC functions; and (3) that ICs parallel real relationships in that different dimensions (presence, type/identity, and relationship quality) might be unique contributors to children's socioemotional development.     

What influences the size of child maintenance payments? A register‐based study of maintenance payments in Finland

The aim of this study was to explore how particular economic and demographic factors contribute to the level of the child maintenance payment (CMP) paid by the non‐resident parent. For this study, we used 5‐year longitudinal panel data from years 2009 to 2013 consisting of over 80,000 non‐resident parents from the Finnish Tax Administration and The Finnish Population Register Centre. Results from regression models indicate that the single biggest factor affecting the size of CMPs is the number of dependent children. We found that the non‐resident parent's higher income is associated with higher CMPs and that non‐resident fathers pay on average larger CMPs than non‐resident mothers, even after accounting for differences in income. Unexpectedly, we found that the age of the dependent child did not predict changes in CMPs. This suggests that once formal CMP‐contracts are determined between the parents, they are seldom changed. Our results suggest that some degree of mandatory periodic review for maintenance contracts is worth considering.     

Mother–Child Conversations about Emotions: Linkages to Child Aggression and Prosocial Behavior

We examined associations of maternal and child emotional discourse and child emotion knowledge with children's behavioral competence. Eighty‐five upper middle‐income, mostly White preschoolers and mothers completed a home‐based bookreading task to assess discourse about emotions. Children's anger perception bias and emotion situation knowledge were assessed in a separate interview. Children's prosocial behavior, relational aggression, and physical aggression were observed during a preschool‐based triadic play task. Mothers' emotion explanations were correlated with children's emotion situation knowledge and relational aggression. Both mothers' and children's emotion explanations predicted prosocial behavior whereas mothers' use of positive emotional themes was negatively associated with children's anger perception bias. Physical aggression was predicted by mothers' emotion comments, children's anger perception bias, and lack of emotion situation knowledge. Maternal emotion socialization variables were less strongly related to children's behavioral competence after accounting for demographics and child emotional competence. Implications of these findings for future research on emotion socialization are discussed.