Social protection and poverty in Azerbaijan, a low-income country in transition: Implications of a household survey

Using a nationally representative survey, this study examines the performance of social protection in Azerbaijan from the perspective of poverty reduction. Empirical evidence presented suggests that social protection programmes have an important impact on poverty alleviation. However, poverty is still widespread. The findings demonstrate that the current system of social protection has several important limitations. First, a significant proportion of the poor population is not covered by the social protection system. Second, the poor typically receive a smaller share of total benefits than the non-poor. Finally, most social transfers are too small to lift households out of poverty. The current system of social protection in Azerbaijan requires further strengthening. In particular, the government should develop and implement new social assistance programmes specifically directed towards poverty reduction.     

The effects of income transfers on poverty reduction in people with disabilities in South Korea

Using a nationally representative sample dataset from the 2016 Korean Welfare Panel Study, we examined the anti‐poverty effects of income transfers in people with disabilities. Our findings indicate that in households with a person with a disability, income transfers decreased by 55.9% and 84.8% of the pre‐transfer poverty rate and poverty gap, respectively. Before income transfers, households with a person with a disability were 1.94 times more likely to be poor compared to those without a person with a disability. When income transfers were offered, the chance of being poor in the disability group was only 1.11 times higher than that in the non‐disability group. Findings from the aggregated data suggest that means‐tested income transfers were more effective in reducing poverty levels than social insurance or private income transfers. At the individual level, the provision of means‐tested programs was also more likely to decrease the likelihood of experiencing poverty than social insurance and private income transfers.     

Can the minimum living standard guarantee scheme enable the poor to escape the poverty trap in rural China?

The rural Minimum Living Standard Guarantee (Dibao) Scheme is the most important social assistance programme in rural China. However, how the rural Dibao programme affects household expenditures and whether it can enable the poor to escape the poverty trap are questions that remain largely unexplored. This study used data from the 2012 Rural Household Survey in China to investigate the impact of the rural Dibao programme on household expenditures. We found that the programme significantly improved the well‐being of low‐income households. Particularly, the programme significantly increased household expenditures on housing, education and health; furthermore, the impact was greater for households with educated household heads. However, the programme did not significantly affect household expenditures on food, transportation or farming inputs. The results imply that participation in the rural Dibao programme induces household investment in human capital, which could help to break the inter‐generational transmission of poverty and raise long‐run welfare.     

Little cash to large households: Cash transfers and children's care in disadvantaged families in Ghana

Social protection is widely considered to have a positive effect on children, including supporting improvements in nutritional, educational and health outcomes. Much less is known, however, about the impact of interventions on children's care. This article considers the impact of a social cash transfer targeted at poor households – Ghana's Livelihood Empowerment Against Poverty (LEAP) programme – on child well‐being, quality of care and preventing children's separation from their parents as perceived by programme and non‐programme beneficiaries in a context of vulnerability, large households and widespread informal kinship care. Findings suggest that cash transfers can improve both material and non‐material aspects of well‐being and contribute to the quality of care and have the potential to prevent children's separation from their parents. At the same time, not all children appear to benefit equally, with non‐biological children being disadvantaged. The combination of large household sizes with programme design and implementation challenges, including low transfer amounts, a cap on the maximum number of eligible household members and poor sensitization and follow‐up, undermine the positive role that cash transfers can play.     

The Poverty Situation in Indonesia: Challenges and Progress of the Marginalized Group

This paper focuses on Indonesian poverty alleviation programs. It examines the national poverty reduction programs of cash‐based support projects for the poorest of the poor and highly marginalized groups. Indonesia was the country hardest hit by the East Asian financial crisis of the late 1990s. In 2005, Indonesia began unconditional cash transfers (UCT) for the first time – giving cash money to the poorest, poor and near‐poor targeted households. As a result, the income of the poorest households receiving UCT increased by 1.3 times compared to that of non‐recipients. The UCT can be seen as a new benchmark for Indonesia as a mechanism of a “shockbreaker” for the poor affected by the crisis. In 2007, the government of Indonesia began a trial of the conditional cash transfer (CCT) program known as the Hopeful Family Program (Program Keluarga Harapan or PKH). The CCT program was provided to poor families with an allowance conditional on their attention to their children’s education and health. With this program, women in the community gained access to new resources, in the form of the additional cash. CCT is planned to be the basis of the development of a future social security system.     

Poverty in the Kingdom of Saudi Arabia: An Exploratory Study of Poverty and Female‐headed Households in Jeddah City

This article reports an exploratory study in Jeddah City, Saudi Arabia, which assembled data and information from government and non‐governmental organizations about poverty and poverty alleviation policies. A list of poor families which were receiving benefits from the Social Security Department and charitable associations in Jeddah City was constructed, from which female‐headed households were identified and classified depending on the circumstances of the female head. The article describes the social, cultural and demographic characteristics of poor female‐headed households in Jeddah. The article also uses the results of interviews with 13 poor female heads of households to analyse aspects of their everyday lives. This evidence is used to discuss the ability of the Saudi state's income support system to address poverty as the country undergoes economic and social modernization.     

The prevalence and composition of asset poverty in Canada: 1999, 2005, and 2012

A household is considered asset poor if its assets (financial assets or net worth, taken separately) are insufficient to maintain well‐being at a low‐income threshold for 3 months. We provide the first national‐level estimates of asset poverty for Canada, using the 1999, 2005, and 2012 cycles of the Survey of Financial Security, and juxtapose these estimates with income poverty. The analysis provides new insight into economic insecurity by showing that asset poverty rates are consistently two to three times higher than income poverty rates. In addition to the prevalence of asset poverty across socio‐demographic groups, we analyzed how the composition of the poor change over time. Age and geography shape the risk for asset poverty in distinct ways. We found that while education appears to play a comparable role in shaping both income poverty and asset poverty, immigration places Canadians at a relatively higher risk of income poverty but not asset poverty. Key Practitioner Message: ? Practitioners ought to consider assets as well as income in assessing economic vulnerability; ? Asset poverty levels are 2–3 times higher than income poverty levels; ? Certain groups (e.g., immigrants) may be income poor but maintain sufficient assets.     

Poverty, Social Exclusion and Social Policy in the Czech Republic

This article analyses the pattern of poverty and social exclusion in the Czech Republic and the impact of social policy on this pattern. The analysis is mostly based on data from the Czech Survey on Social Conditions of Households (2001; 27,000 respondents); Eurostat data provide a benchmark for making international comparisons. The poverty rate in the Czech Republic is among the lowest in Europe. On the other hand, material deprivation, as well as concentration of poverty within specific population groups, is high, with the unemployed facing the highest risk of poverty. Social policy measures in effect reinforce this pattern: while the benefit system is highly redistributive and effectively eliminates income poverty among households of employed persons and among pensioners, incomes of persons outside paid employment are protected less effectively. Labour market policy measures are insufficient in scope and inadequate in targeting groups which are facing the highest risk of labour market exclusion and poverty. We argue that although this practice is effective at present, it is not sustainable in the long term.     

Who Benefits the Most? The Unequal Allocation of Transfers in the Israeli Welfare State

Objective . This article critically examines contradictions within the Israeli welfare system, and asks how welfare transfers affect poverty for different social groups. Methods . Using data from Israel's 1996 Income Survey conducted by the Central Bureau of Statistics, the analysis focuses on households with working-age heads, and compares poverty rates, before and after transfers among three groups: (1) recent immigrants; (2) Arabs; and (3) ultra-orthodox Jews ( Haredim ), distinguishing between couple- and female-headed households. Results . The results show that social welfare policy is more effective in aiding recent immigrants, who are entitled to special benefits, than aiding Arabs. The findings also show that transfers have a stronger effect in reducing poverty among female-headed families than among couple-headed families, thus reducing the gap between these two types of households. Conclusions . Israeli welfare policy reduces poverty, but this effect differs substantially by social group. While formally Israel is considered a universalistic welfare state, for historical and ideological reasons certain social groups, such as Jewish immigrants, have been favored and granted extra benefits, while others, such as Arabs, were neglected.     

Does Hospitalization Make Elderly Households Poor? An Examination of the Case of Kerala,India

Physical and health risks are very high among aged persons. The precise implications of population ageing for future levels of health and healthcare utilization depend on whether the increases in life expectancy experienced in general are accompanied by an increase or a decrease in health problems in later life. The health risks of the presence of an aged person in a household can result in a catastrophic shock for the family and render such households more exposed to poverty. The increased cost of medical bills means that large numbers of the elderly in the developing world are deprived of access to health and to better health treatment. This article examines this question empirically, using the largest national survey in the Indian state of Kerala, comparing elderly with non‐elderly households. We also attempt to find the impact of unhealthy lifestyles on the financial status of these households, due to hospitalization as a result of an aged person's illness.     

Household empowerment as the key to eradicate poverty incidence

The current study aimed to investigate how the household empowerment can potentially reduce the rural poverty incidence. The data were collected through multistage random sampling from the rural households of 24 villages in Southern Punjab, Pakistan. A total of 600 households were selected as sample pool. Face‐to‐face interviews with the household heads were conducted. The household empowerment was measured through an index that was adopted from Abrar‐ul‐haq (“An assessment of the role of household empowerment in alleviating poverty in Southern Punjab, Pakistan” (Ph.D. Dissertation), School of Economics, Finance and Banking, Universiti Utara Malaysia, 2017). The binary logit model was used to analyze the impact of household empowerment with other control variables on poverty incidence. The results of the current study confirm the negative nexus between household empowerment and poverty incidence of rural households as the study reported that the probabilities (odds ratio: 0.877) of being poor are reduced by increasing the empowerment (in every aspect, economically, politically, and socially) of the households, and the results are statistically significant at the 1% level of significance. Based on empirical results, this study suggests that household empowerment has significant potential to reduce poverty incidence in the rural areas of Southern Punjab, Pakistan.     

Comparing income poverty gap and deprivation on social acceptance: A mediation model with interpersonal communication and social support

In many developed countries or regions, wide income disparities increase the difficulty in reducing poverty. In their day‐to‐day lives, poor people often feel less accepted by the society. The failures in communicating with social groups and receiving social support lead to negative consequences on individual well‐being and higher level of social exclusion. Based on the debate upon alternative approaches to conceptualizing and operationalizing poverty, this study attempts to verify a mediation model with data from a household survey (N = 1,202) in Hong Kong. The results of structural equation modelling reveal that deprivation is a more powerful indicator than income poverty for specifying the negative relations of poverty with interpersonal communication, social support, and social acceptance; the negative impact of deprivation on social acceptance can be reduced by two significant mediators of interpersonal communication and social support. The results are discussed in terms of directions for future research and policy and welfare intervention.     

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.     

Material hardship and depression among low‐income households in South Korea: Differences by household type

With the recent trend of growing poverty in South Korea, low‐income households, particularly elderly‐ and single‐headed households, are at high risk of experiencing material hardship and depression. However, less is known about the association between material hardship and depression by household type in Korea. Using data (N = 2,913) from the Korean Welfare Panel Study and employing several methodological approaches to address the omitted variables bias, this study examined: (i) the association between material hardship and depression among low‐income households, and (ii) whether the association differed by household type. We found that experiencing material hardship was associated with a higher likelihood of being depressed. In addition, we also found that the association between material hardship and depression differed by household type. The magnitude of the association was most pronounced in single‐ and elderly‐headed households. Policy implications to improve well‐being among low‐income households were discussed.     

The End of the Rollercoaster? Growth,Inequality and Poverty in Central Asia and the Caucasus

This paper examines the impact of a decade of transition on living standards and welfare in Central Asia and the Caucasus. Following independence in 1991 all countries suffered a sharp decline in GDP per capita, with levels in some countries falling to below a quarter of the pre‐transition level. Since then, all countries have experienced positive economic growth. The key questions are whether this growth has been accompanied by declines in inequality and poverty and, if so, how sustainable are these improvements. There is some evidence that recent growth has benefited the poor. However, at the start of the new century, an estimated 39 million people in Central Asia and the Caucasus were living in poverty, of whom over 14 million were living in extreme poverty. Moreover, there is evidence of growing inequalities in terms of access to health and education services, with implications for future human development. Continuing poor governance within the region represents a major barrier to future poverty reduction.     

Reverse Mortgage as an Income Stabilizer for the Elderly in Korea

This paper examines the features of reverse mortgages in Korea, comparing beneficiary and non‐beneficiary groups in relation to income security for elderly homeowners without sufficient income. In addition, this study estimates how much poverty rates would decrease if all elderly single and couple households joined the program. A reverse mortgage was implemented in 2007 in Korea as a government guaranteed scheme for elderly homeowners. Notwithstanding the contribution of the reverse mortgage program, many elderly homeowners do not utilize the system as a useful means to earn additional income. Given the high elderly poverty rate and incomplete social safety net in Korea, the program should be extended to supplement the insufficient income of elderly “house‐rich but cash‐poor” households. The paper first reviews reverse mortgage policy details. We then investigate key characteristics of the beneficiaries and compare beneficiaries and non‐beneficiaries based on nationwide survey data. Finally, we estimate the potential income‐raising effects of the program and draw implications of the income security policy in Korea and reconfiguration of the welfare state in a broader context.     

The housing fulcrum: Balancing economic and social factors in housing research and policy

Abstract

We discuss the pivotal role that housing plays for both social and economic outcomes. All people need to be housed, and housing circumstances help determine social outcomes, especially for vulnerable groups. We outline an analytical framework that treats housing as a dynamic system, incorporating the life‐cycles of both individuals/households and houses. Each is long‐lived; decisions impact on housing for decades. This approach is relevant to the development of housing research and housing policy. We illustrate the issues with reference to the relationship between rental yields and measures of deprivation across New Zealand. The surprising nature of this relationship has consequences regarding potential poverty traps and wealth disparities. While highlighting an important housing market issue, any policy response to this issue is complicated by the need to take account of the life‐cycles of both individuals and of houses, and by the long‐lasting impacts of decisions.     

Why Did Poverty Become Less Geographically Concentrated in the 1990s?*

Objective. After increasing sharply in the 1970s and 1980s, the number of high‐poverty neighborhoods in the United States unexpectedly and dramatically declined in the 1990s. This article examines the roles that residential and income mobility played in this decline. Methods. Using geocoded data from the Panel Study of Income Dynamics, this study analyzes changes during the 1990s and early 2000s in: (1) patterns of residential mobility between high‐poverty and lower‐poverty neighborhoods; and (2) patterns of income mobility for residents who remained in high‐poverty neighborhoods. Results. Both patterns of residential and income mobility changed in the 1990s and early 2000s. While patterns of residential migration to high‐poverty neighborhoods were largely unchanged over this period, patterns of residential migration from high‐poverty neighborhoods changed significantly, with poor individuals—especially poor blacks—becoming more likely to relocate from high‐poverty to lower‐poverty neighborhoods. Patterns of income mobility for residents who remained in high‐poverty neighborhoods also changed significantly, with nonpoor residents becoming less likely to become poor and poor residents becoming more likely to exit poverty. Conclusion. Poverty rates in high‐poverty neighborhoods fell primarily because of the net upward income mobility of residents who remained in these neighborhoods.     

GAUGING NEW ZEALAND'S SUCCESS AT POVERTY REDUCTION IN THE NEW MILLENIUM

This paper presents the results of the New Zealand Poverty Measurement Project's analysis of the effects of the 1990s social reforms in New Zealand on the incidence and severity of poverty, and assesses the impact of five social and economic policies introduced by the Labour‐led coalition governments since 1999: New Zealand superannuation, income‐related rents on state houses, active labour market policies for an employment‐rich economy, the Primary Health Care Strategy and the planned income support policy to reduce child poverty. Superannuation is assessed as both adequate and sustainable, rents for state houses are found to be affordable, and GDP growth and employment have increased incrementally as unemployment and benefit numbers have decreased. The Primary Health Care Strategy is an innovative initiative that will increase affordable access to general practitioners, but it and the proposed child assistance initiatives are too new to be adequately assessed. Of the challenges that remain, policy priorities should centre on housing alternatives, including home ownership for low‐income households not in state houses; income support for poor households, particularly those with children; and multi‐sector development of education and training aimed at lifting economic and social capacity.     

Enriching Resources for the Poor: Lessons from the Philippines

The paper provides an overview of the poverty situation in the Philippines, followed by a brief profile and assessment of two anti‐poverty programs: the Kapit‐Bisig Laban sa Kahirapan‐Comprehensive and Integrated Delivery of Social Services (KALAHI‐CIDSS) program and the Pantawid Pamilyang Pilipino Program (4Ps). Official statistics disclose that the global economic crisis in 2008 adversely affected Filipino households, leading to higher levels of poverty especially in rural areas. In response, government introduced an Economic Resiliency Program with social protection as one component. Sixty‐six social protection programs were launched, including the two under review. KALAHI‐CIDSS and the 4Ps apply poverty reduction strategies that focus on the development of human and social capital, rather than economic capital. They involve processes and relationships that aim to improve the other dimensions of poverty, such as lack of access to opportunities or deprivation of basic human necessities. Qualitative and quantitative reports describe generally favorable outcomes from both programs. However, these gains at the household level need to be supported by relevant policy, enhanced public services and badly‐needed infrastructure programs from government, in order to sustain achievements culled from social protection programs and attain broader developmental impacts.