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.     

Disposable income differences between immigrants and natives in Sweden

This paper investigates whether there are differences in Sweden between immigrants and natives in disposable income and in the probability of having a low disposable income. By investigating disposable income and the probability of having a low disposable income, our study illuminates to what extent taxes and transfers in the Swedish welfare state manage to compensate for differences in income from work between immigrants and natives. The study shows that there are differences between different groups both in disposable income and in the probability of having a low disposable income and that these differences remain when we control for factors such as age, gender, education and civil status. Early immigrants from the Nordic countries have a higher disposable income than does the native population whereas recent immigrants have a substantially lower disposable income and a higher probability of remaining poor than both earlier immigrants and the native population. In summary, our study shows that the differences in disposable income between immigrants and natives are indeed smaller than the differences in income from work but that the differences are not completely counterbalanced through the tax and transfer system.     

Regional differences in inequality and income distribution in the United States

The Consumer Expenditure Survey makes it possible to disaggregate the income distribution of the whole country into four regional groups. This paper fits models over the regional summary tables of consuming units between income levels. The regional measures of central tendency are compared, and the mode, not normally published by the Census, is added. It also examines how the fulfillment of a federal government policy to pass on income to the poorer segments of the society could be financed if the cost of the subsidy is extracted by taxing a wealthy segment of the society.     

Varieties of liberalism: A comparative analysis of family policy and poverty outcomes across the 50 United States

The United States is generally recognised as an exemplar of liberal policy regime types. However, given evidence of state-level divergence in social policy, this article investigates to what extent such variation is present and relevant in state-level family policy. To this end, we pose a primary and secondary research question. Our primary question is whether varieties of liberalism exist across the 50 states in the United States. Our secondary question is whether these varieties of liberalism correspond to variety in social indicators of families' economic well-being. To answer our primary question, we first construct a family policy index that scores the relative generosity and coverage of state-administered social programmes that contribute to the (de)commodification and (de)familialisation of households with children. We then perform a cluster analysis to group states by shared decommodifying and defamilialising features. To answer our secondary question, we investigate how our family-policy clusters are associated with social indicators of families' financial security. Our findings suggest that varieties of liberalism do, indeed, exist within the United States. With the exception of Vermont, which stands out with respect to its comparatively generous family policies, we classify states into two groups: those with ‘soft’ liberal family policy in states featuring relatively generous and accessible policies and ‘hard’ liberal family policy in states achieving little of either. We find that these differences help explain state-level heterogeneity in levels of economic security among households with children, particularly single-mother households.     

Labour Market Policy in the United States, Canada and Sweden: Addressing the Issue of Convergence

'Convergence theorists' suggest that domestic and/or global challenges and pressures are rendering welfare states broadly similar across national boundaries. 'Resilience theorists', in contrast, argue that a range of socio-political factors have allowed states to respond differentially to these pressures and maintain their distinct national social policy approaches. However, both research streams have addressed the 'welfare state' writ large in a multitude of nations and typically relied upon narrow, quantitative budgetary indicators. This study examines qualitative changes to key income security and social service programmes in one central social policy domain – labour market policy – in three nations, the United States, Canada and Sweden. It suggests that there is evidence of some degree of 'convergence' in the broadest sense of the term across these three nations. However, while both the USA and Canada have readily embraced genuinely neo-liberal restructuring, and become increasingly similar over the past two decades in this policy area, Sweden has managed to retain its distinctive social policy approach so far, despite notable changes, developments and trends. It also suggests that the character and direction of change may vary across and within policy domains in a single nation. The conclusion provides a discussion of universality, equality and solidarity, concepts that are commonly employed in accounts of welfare state change.     

The Changing Conception of Pension Rights in Canada, Mexico and the United States

Relying on four conceptualizations of the welfare state (universalism, redistribution, state capacity, and intergenerational equity), this article presents an overview of recent pension reforms in Canada, Mexico and the United States. Each country has introduced important reforms in the past 25 years and is currently engaged in debates to make other adjustments. The state is reducing its financial and programmatic commitment towards current and future retirees and is promulgating reforms tightening the link between contributions and benefits. In Canada, the government raised contribution rates substantially to maintain the same level of benefits while it sought to alter its universal flat-rate benefit. In the USA, changes to Social Security have resulted in a higher retirement age and lower replacement rates. In the case of Mexico, the most important public schemes have actually been privatized.     

Work, welfare and the attack on the welfare state: the mixing of politics and policy

This article considers the current ideological and political attack against the floor of benefits for poor families in the United States. It examines a number of punitive approaches to the treatment of families on welfare that were developed in the United States in the late 1980s and the 1990s and contends that such policies will not effectively deter the dysfunctional behavior of some of the poor. Rather these policy developments reflect an attack on current national policies of developing an income maintenance floor that seeks to economically sustain poor families, albeit often inadequately. The article contends that current welfare proposals by conservatives and social liberals are not satisfactory for dealing with the problems of the welfare poor and offers suggestions for dealing with these deficits. It also notes that criticisms of welfare state protection for the poor raised in the United States are much more categorical than those raised in Sweden.     

How to Design a "Liberal" Welfare State: A Comparison of Canada and the United States

My aim in this paper is to show how differences in the programmatic design of two otherwise "liberal" welfare regimes have generated substantially different patterns of welfare state retrenchment and distributive outcomes since the 1970s. Welfare regimes are distinguished by the principles and rules that regulate transactions between the three institutional nuclei from which individuals derive their "welfare" in modern capitalist societies—the state, the market, and the family. Liberal regimes are characterized by a preference for market solutions to welfare problems. While Canada and the United States both represent paradigmatic instances of the liberal regime type, there are long-standing differences in methods both of financing and distributing benefits. Differences in programme design led to substantially different retrenchment strategies from the end of the 1970s, which in turn produced dramatically different distributive outcomes: rising inequality and poverty rates in the United States compared to relative stability in the distribution of income among Canadian families.     

Child welfare services in the United States and Sweden: different assumptions, laws and outcomes

The child welfare systems in Sweden and the United States were dramatically reformed beginning in the early 1980s. After 10 years, the different results of these reforms are quite striking. These child welfare systems have different methods for preserving families in crisis; different assumptions about the roles of birth parents, foster parents, and adoptive parents; and different goals for children who will not go home. Each of these areas is explored and recommendations made for re-examining child welfare services in both countries.     

The case for the privatization of social welfare: three decades of public opinion evidence from Great Britain and the United States

In the last two decades, the conservative critique of the welfare state has been very strong. This study examines the claim of neoconservatives that there is a mass repudiation of the welfare state in the advanced industrial countries. Empirical opinion survey findings from Great Britain and the United States between 1960 and 1990 are examined. Contrary to the radical right rhetoric, there is popular support for social programs in both countries. Evidence also points to sizeable support for a mixed economy of welfare. Three explanations are put forward to account for enduring public support for social programs: the prevalence of social rights, support from the poor and middle class and the limitations of markets.     

Aging and social welfare in transition: the case of the United States

In the United States at the end of the twentieth century, government policies regarding elderly people appear to be in transition. In part this reflects the traditional American ambivalence between radical individualism and collective assistance - especially in the form of tax-supported public welfare provided through government agencies - for those unable to earn or save for their own support. But in part this reflects new concerns about the growth of welfare "entitlements" for elderly people and the presumed "generational inequity" of public support for the aged at the expense of funds for children and young families. We review 1) the changing demography of the United States elderly population, 2) the complex and ambivalent history of welfare policy in the United States and 3) the evidence for tensions and conflicts between older and younger Americans in the context of politicized "generational inequity" debates, with special attention to changing government health care policies. We conclude that in American society, particularly in terms of federal assistance to the aged, there is considerable public support for current policy measures, and - contrary to the predictions of many - it is not likely that there will be dramatic policy changes in the near future.     

Child Welfare in the United States: Policy, Practice and Innovations in Service Delivery

Child welfare in the United States is characterized by numerous and complex problems. By reviewing child welfare policy and trends in the United States, this article aims to stimulate discussion about innovative approaches that could allow child welfare professionals, both in the US and internationally, to better meet the needs of children and families.     

Care earnings in the United States and 24 European countries: The role of social policy and labour market institutions

Care occupations are gendered and remain relatively poorly paid, particularly in the United States. Prior research on the ‘care penalty’ primarily points to individual, relational, and market-valuation factors in explaining the relative earnings of care workers. This study integrates these explanations with a comparative institutional perspective. Using higher-quality data and methods than previous comparative research in the field—that is, harmonized micro-data from the Current Population Survey and EU-SILC from 2005 to 2016, country and year fixed effects models, and a counterfactual analysis—we find that national variance in labour market and welfare state institutions explains most of the difference in the relative earnings of reproductive care workers between the United States and European countries. Higher rates of collective bargaining coverage, stronger employment protection and welfare state spending contribute to higher relative earnings for reproductive care occupations, and lower relative earnings for high-status nurturant care occupations. Differences in the relative earnings of care workers appear to be mostly a construct of social policy and labour market institutions rather than individual, relational, and market-valuation factors.     

Social policy and embedded evaluation: Assessing the impact of a food insecurity project in the United Kingdom

Social policy making needs to involve robust evaluation to assess its impact. In this article, a social policy intervention focused on tackling food insecurity amongst vulnerable people is examined and the benefits and challenges of using an embedded approach to evaluation are considered. Food insecurity is defined as not always having the economic, social, and physical resources to ensure a sufficient supply of nutritionally appropriate food. Evidence suggests that food insecurity in the United Kingdom is increasing in the context of long-term poverty, austerity, insecure employment, rising living costs, low pay, and cuts to welfare and public services. An embedded evaluation was conducted involving interviews with the intervention participants and observations of a series of cooking and food budgeting classes. The findings suggest that the classes had a positive impact on many of the participants, who felt more confident about cooking and valued the shared experience. However, given the acute problems facing many of the participants including long-term poverty, policies aimed at tackling food insecurity need to go beyond cooking and food budgeting skills. The embedded evaluation approach contributed towards the overall impact of the intervention by providing insights that led to changes as part of an iterative process during the intervention rather than in the form of a final report after its completion. An embedded evaluation-based approach can be resource intensive, and the role of the evaluators can present challenges, but it can help to bridge the gap between intervention design, delivery, and social change.     

Solidarity and tension between age-groups in the United States: challenge for an aging America in the 21st century

In this article, we argue that intergenerational tensions in the United States reflect a strategy for serving the aged that stresses the underlying values of individualism and self-reliance. Using national survey data, we examine the extent to which Americans' view of public responsibility for the aged has shifted between the mid-1980s and late-1990s, a period characterized by the intensification of "generational" politics, as well as a growing hostility toward "big government." We consider four factors that may be responsible for the escalation of intergenerational tensions as they are manifest in the erosion of public support for programs and policies serving the elderly: (1) Declining intergenerational solidarity with the aged ; (2) Increasing concerns over age-inequity in public programs ; (3) Increasing concerns over resource-inequity in public programs; and (4) Increasing opposition to big government . Results indicate that the public has generally grown more apprehensive about the value and costs of government programs serving both the elderly and the poor. Yet, the fact that Social Security enjoys far more support than social programs serving the poor suggests that the elderly are perceived as more deserving of their benefits than other dependent groups in society. The public also appears increasingly reluctant to redistribute old age benefits according to need. Age-group contrasts revealed little evidence of direct tension between the generations. The results suggest that growing distrust of government and reluctance to help the poor has indirectly fueled opposition to public spending on the older population. Proposed changes to programs and policies affecting the elderly will need to take into account the ambivalence felt by many Americans toward a government they expect to make good on its promise to care for all older citizens, but to use fewer resources in doing so.     

Poverty reduction effectiveness of public income transfers in South Korea in the wake of the global financial crises: a panel-data analysis

By using a longitudinal data-set from the Korean Labor and Income Panel Study, the present study examines the poverty reduction effectiveness of public income transfers in South Korea from 1998 to 2011. Findings indicate that the average poverty rate fell from over 20% between 1998 and 2000, to 14% from 2001 to 2006, rose to 17% by 2008, and declined to 15% in 2011. However, the poverty-rate reduction effectiveness continuously increased from 5.5% in 1998 to 32.8% in 2011. The poverty-gap reduction effectiveness also improved sixfold from 6.8 to 39.6% over the same period.     

Nonresidential fathers with children in foster care: A descriptive study in the United States

This study used the data from 64 nonresidential fathers who had their children placed in foster care to describe their characteristics. The survey included questions about demographic background and personal challenges, the father's involvement with his child in foster care, the father's relationship with the mother, barriers to the father's involvement, and the relationship with child welfare agencies and workers. The average age of the participants was about 39 years, and the majority of them were African American. About 70% of the fathers reported low levels of education. Almost 69% of fathers reported frequent face‐to‐face contact with their children. On average, the participants were arrested 2.6 times, and it ranged from 0 to 34. More research is necessary to learn more about these fathers, develop programs to help them become a viable source for permanency option, and become more involved in their children's lives.     

Betwixt and between the market and the state: Israeli students' welfare attitudes in comparative perspective

Analysing comparable samples of students from the Cross-Cultural Variations in Distributive Justice Perception (CVDJP) project, we explore the multidimensionality of attitudes towards the welfare state in Israel compared with countries from liberal and social-democratic welfare regimes (the USA, Canada-Ontario, Sweden, Norway and The Netherlands). We derive six different attitudinal dimensions that constitute two distinct sets of opposing welfare ideological frames. The first set, market-based ideology, entails three coexisting criteria: individualism, internal attribution of inequality, and work ethic. The second set, welfare-statist ideology, entails three additional coexisting criteria: egalitarian redistribution, external attribution of inequality, and broad scope of welfare. Along with structural similarities, we find considerable variation in levels of aggregate attitudes across the different types of welfare regimes. Israeli respondents stand out because of their strongly ambivalent welfare attitudes. While scoring higher than respondents from the liberal regimes on market-based measures, they paradoxically record similarly high scores (comparable to social-democratic regimes) on state-based measures. On one criterion – attribution of inequality to external causes – Israeli respondents even score higher than respondents from both liberal and social-democratic regimes. We consider potential explanations for this ambivalence and suggest possible directions for further research.