Reducing poverty and inequality through tax-benefit reform and the minimum wage: the UK as a case-study

Atkinson’s book Inequality: What Can Be Done? (Harvard University Press, 2015) sets out a range of concrete proposals aimed at reducing income inequality, which cover a very broad span but include major changes to the income tax and social transfers system and the minimum wage. These are framed with specific reference to the UK but have much broader relevance in demonstrating how substantial the impact on inequality of such measures could be. This paper assesses the first-round effects of these tax, transfer and minimum wage reforms on income inequality and poverty based on a microsimulation approach using EUROMOD. The reforms involve a significantly more progressive income tax structure, a major increase in the minimum wage to the level which is estimated to represent the ‘Living Wage’, and alternative routes to reforming social transfers – either to strengthen the social insurance element or to restructure the entire system as a Participation Income (a variant of Basic/Citizen’s Income). The results show how the first-round effects of either set of tax and transfer proposals would be to substantially reduce the extent of income inequality and relative income poverty and the paper draws out how the two approaches differ in their effects. The additional impact of raising the minimum wage to the Living Wage is modest, reflecting in particular the position of beneficiaries in the household income distribution and the offsetting effects on household income of the withdrawal of means-tested cash transfers.     

Perceptions of physical activity among elderly residents and professionals in assisted living facilities

Background

Physical activity is often described as being important for people of all ages, but what different people mean when they talk about physical activity is unclear.

Method

A phenomenographic method was used to analyze how 13 older people and 17 professionals answer the question, “If I say physical activity, what does the concept mean to you?” as part of semi-structured interviews conducted in four assisted living facilities in two different municipalities.

Results

We identified a number of different perceptions of physical activity, with the older people and professionals having different responses. Elderly and professionals alike, define physical activity as a requirement for life and as an opportunity to maintain the body although they define the concepts in different ways. Elderly define the concept as a way to create meaning and the professionals have the attitude that the concept means everyday activities.

Conclusion

The concept of physical activity may be defined in many different ways. This study has shown that elderly and professionals do not define physical activity in the same way. Therefore, professionals need to be aware of these differences when talking with elderly about individual needs in everyday life.

     

Capital mobility and spatial inequalities in income and industrial location

This paper considers how imperfect capital mobility affects spatial inequalities in income and industrial location. The framework of Takahashi et al. (2013) is applied to investigate the effects of integrating the capital market. Several new findings are obtained. First, the inequality in nominal income displays a bell-shaped relationship with falling trade costs if capital mobility is not too low. Second, keeping the trade costs fixed, the inequalities in nominal income and industrial location behave differently when the capital market is integrated. Finally, integration of the product market and integration of the capital market have different impacts on inequality in real income. This explains why empirical findings on spatial inequalities are mixed.     

Sticky floors and glass ceilings in Latin America

We employ unconditional quantile-decomposition methods to analyze the gender wage gap (gwg) in the urban region of twelve Latin American countries. Using data from harmonized household surveys we decompose the gwg into an explained component (differences in human capital) and an unexplained component (different rates of return to human capital). We find evidence of sticky floors (larger gwg at the tenth percentile than at the median) and glass ceilings (larger gwg at the ninetieth percentile than at the median). The former are more frequent and their magnitude is generally larger. Working women are more educated than working men all along the wage distribution, which partially hides the ‘unexplained’ pay difference. Finally, we find that poorer countries and countries with more income inequality have higher gwg at the tenth percentile of the wage distribution. Richer countries and countries with lower inequality present larger gwg at the ninetieth percent of the wage distribution.     

Dynastic inequality,mobility and equality of opportunity

One often heard counter to the concern about rising income and wealth inequality is that it is wrong to focus on inequality of outcomes in a “snapshot”. Intergenerational mobility and “equality of opportunity”, so the argument goes, is what matters for normative evaluation. In response to this counter, we ask what pattern of intergenerational mobility leads to lower inequality not between individuals but between the dynasties to which they belong? And how does this pattern in turn relate to commonly held views on what constitutes equality of opportunity? We revive and revisit here our earlier contributions which were in the form of working papers (Kanbur and Stiglitz 1982, 1986) in order to engage with the current debate. Focusing on bistochastic transition matrices in order to hold constant the steady state snapshot income distribution, we develop an explicit partial ordering which ranks matrices on the criterion of inequality between infinitely lived dynasties. A general interpretation of our result is that when comparing two transition matrices, if one matrix is “further away” from the identity matrix then it will lead to lower dynastic inequality. More specifically, the result presents a computational procedure to check if one matrix dominates another on dynastic inequality. We can also assess “equality of opportunity”, defined as identical prospects irrespective of starting position. We find that this is not necessarily the mobility pattern which minimizes dynastic inequality.     

Pathologising the victim: law and the construction of people with disabilities as victims of crime in Ireland

Victimologists have for many years explored the construction of identities associated with the ‘victim of crime’, and how certain groups in society are understood as more ‘deserving’ of victim status than others. This paper considers the victim subjectivities ascribed to people with disabilities¹¹ In Ireland, ‘people with disabilities’ is the preferred term to ‘disabled people’.View all notes as victims of crime in Ireland by exploring the legal frameworks that shape their encounters with the criminal justice system. The legislative bricolage that exists is shaped by disjuncture, whereby anti-discrimination measures grounded in people with disabilities’ equal rights to access the justice system sit alongside those that construct them in terms of incapacity. Criminal law overwhelmingly pathologises people with disabilities as crime victims, with impairment dominating their victim status. The paper suggests that notions of victimhood that associate people with disabilities with dependency and passivity will do little to raise awareness of the disabling barriers that characterise their encounters with the criminal justice system.     

The Philanthropic Poor: In Search of Explanations for the Relative Generosity of Lower Income Households

In this study we investigate the relationship between income and charitable giving. Previous research shows inconsistent findings regarding both the effect of income on the probability of giving and the proportion of income spent on charitable giving. We test hypotheses with the Giving in The Netherlands Panel Study 2003 (N = 1,316). We do not find an effect of income on the probability of giving, but a consistent negative effect of income on both total and religious donations as a proportion of income. This effect cannot be explained by stronger religious affiliation of lower income groups, or by other differences such as age, and price of giving. We find evidence in favor of a giving standard: Norms concerning the level of donations in specific situations that people in different income groups share, leading lower income groups to donate a higher proportion of their income.

Acceptability of an Aboriginal Wellbeing Intervention for Supporters of People Using Methamphetamines

Families and workers often suffer significant stress while supporting people who are experiencing problems related to methamphetamine use yet there is little evidence on how best to help. Small pilot studies can provide valuable information about potential ways to intervene. This paper presents a pilot study of an Aboriginal family wellbeing intervention with workers in an Aboriginal health service. The pilot indicated that participation in the intervention improved the psychosocial empowerment and wellbeing of workers, that these workers perceived the program as relevant to families, and that this was an intervention they felt they could deliver to clients themselves.

IMPLICATIONS

• An Aboriginal family wellbeing intervention was piloted and found to improve the empowerment and wellbeing of workers. Participants regarded it as highly relevant for families supporting people using methamphetamines and other drugs.

• This research has added to our knowledge about how to assist those supporting Aboriginal people using methamphetamines and other drugs.

     

Older People's “Voices”—On Paper: Obstacles to Influence in Welfare States—A Case Study of Sweden

The official rhetoric of welfare states unconditionally pays tribute to older people's right to express dissatisfaction. In practice, users of older services in welfare states may be deprived of their “exit” options and face considerable constraints when it comes to raising their “voices.” For example, when older people in nursing homes would like to lodge a complaint, they may well be referred to the very staff members they depend on in their everyday lives. This article analyzes a national case study in which these contradictory tendencies are especially explicit: formal influence channels for older people in Sweden. Using data from structured interviews with 100 representatives of Swedish municipalities and drawing on Hirschman's (1970) Hirschman, A. 1970. Exit, voice, and loyalty: Responses to decline in firms, organisations, and states, Cambridge, MA: Harvard University Press.  [Google Scholar] theory on exit and voice, the article analyzes obstacles to older service users' influence in Sweden and develops explanations for these obstacles in terms of social contexts.     

Anticipating Nollywood: Lagos circa 1996

This essay discusses the Nigerian film Owo Blow (1996 Owo Blow. 1996. Film. Directed by T. Ogidan, Nigeria: First Call Production and Support.  [Google Scholar]), as a way to examine an aesthetic tendency that is largely missing in Nollywood, and to explore the relationship between media and the city, particularly in regard to Lagos. I use this film to propose three issues that are worth highlighting for a productive engagement with the relationship between media and urbanity. First, I argue that the current global interest in Nollywood is highly mediated, isolating the English‐language‐accented, popular genre‐formatted sub‐genre as the Nollywood film. Secondly, this process of mediation has tended to a kind of totalisation because it emphasises the commercial as the primary identity of the cinematic practice. Thirdly, I argue that the possible globalisation of Nollywood is undercut by limitations on how well the generic type can travel. Although recent and longstanding bureaucratic exhortations of Nigerian filmmakers to promote positive images of the country are often derided, Nollywood already fulfils this expectation by default because a systemic, ideologically explicit critique of Lagos as an urban city, for instance, is hard to come by in the films. I contrast this with Owo Blow, which attempts one such critique, a multi‐layered analysis of Lagos as a case study of the postcolonial incredible.     

Conflict Versus Consensus Strategic Orientations Among Environmental NGOs: An Empirical Evaluation

Israeli environmental non-government organizations (ENGOs) are assessed in light of Resource Mobilization Theory, introducing a new method for dividing ENGOs according to strategic orientation. Based on a national survey, 85 groups are categorized as consensus ENGOs that seek understanding aim at finding common grounds, or as conflict ENGOs working “outside the system.” Results show that conflict ENGOs are more grassroots in orientation and consensus ENGOs are more professionalized. Conflict ENGOs operate primarily in local arenas. Consensus ENGOs appear more stable, with larger annual budgets and paid staff, but with fewer registered members. Consensus ENGOs enjoy a wider variety of income sources; receive more funding from government, foreign, and private donations; and have a broader range of self-generated income sources. Conflict ENGOs depend more on membership fees. Both groups are highly dependent on foundation grants. In general, greater resources are associated with consensus activity than among organizations utilizing conflict tactics.     

Social support and children affected by parental HIV

While HIV and AIDS continue to decimate the population of sub-Saharan Africa, HIV remains an issue of major concern for those working with children and families throughout Europe. The combined impact of intravenous drug use by young adults and heterosexual transmission means that increasing numbers of children and young people in many countries in Europe are growing up in families where one or both parents is HIV positive (EuroHIV Report 2001 EuroHIV Report December 2001 www.eurohiv.org/AidsSurv/comments.htm  [Google Scholar]). This paper draws on findings of a recently completed qualitative study of children and young people in Scotland with a parent or carer with HIV. It is argued that social support is especially necessary and yet highly problematic for children and young people with a parent or carer with HIV.     

Measuring and implementing equality of opportunity for income

Departing from the welfarist tradition, recent theories of justice focus on individual opportunities as the appropriate standard for distributive judgments. To explore how this philosophical conception can be translated into concrete public policy, we select the income as relevant outcome and the income tax as the relevant redistributive policy, and we address the following questions: (i) what is the degree of opportunity inequality in an income distribution? (ii) how to design an opportunity egalitarian income tax policy? Several criteria for ranking income distributions on the basis of equality of opportunities are derived. Moreover, we characterize an opportunity egalitarian income tax and we formulate criteria for choosing among alternative tax schedules. I would like to thank Peter Lambert for his encouragement and guidance, and Walter Bossert, Maurice Salles, and partecipants at the 1998 Social Choice and Welfare Conference, Vancouver, and at the Conference on Non–Welfaristic Issues in Normative Economics in Caen for their helpful comments and suggestions. Financial support of the Ministero dellIstruzione, Università e Ricerca (Italy) is gratefully acknowledged. Responsibility for any remaining deficiency is mine.     

Ethnic Identities under the Tourist Gaze

This paper examines the construction of Bai ethnicity and Bai identity on the tourist market in Dali, Dali Bai Autonomous Prefecture, Yunnan, China. Focusing on how the social landscape of Dali has changed in response to the development of tourism, this paper explores how Bai ethnicity is advocated as a product loaded with potential economic values. The author discovers that ‘commerce of authenticity’ (T. Oakes, Tourism and modernity in China. London, Routledge, 1998 Oakes, T. 1998. Tourism and modernity in China, London: Routledge.  [Google Scholar]), and different forms of ethnicity and artefacts promoted in the tourist market have not drowned out the sense of being ethnically Bai. Instead, the tourist industry has become a daily reminder of ethnicity to both insiders and outsiders by making people more self-conscious and reflexive about the ‘cultural stuff’ that they may have previously taken for granted, or may have left unattended. This paper demonstrates how locals actively appropriate state-defined categories and reshape them into the repertoire they desire.     

Barriers and facilitators to adherence to group exercise in institutionalized older people living with dementia: a systematic review

Objectives

Research suggests targeted exercise is important for people living with dementia, especially those living in residential care. The aim of this review was to collect and synthesize evidence on the known barriers and facilitators to adherence to group exercise of institutionalized older people living with dementia.

Methods

We searched all available electronic databases. Additionally, we searched trial registries (clinicaltrial.gov, and WHO ICTRP) for ongoing studies. We searched for and included papers from January 1990 until September 2017 in any language. We included randomized, non-randomized trials. Studies were not eligible if participants were either healthy older people or people suffering from dementia but not living in an institution. Studies were also excluded if they were not focused on barriers and facilitators to adherence to group exercise.

Results

Using narrative analysis, we identified the following themes for barriers: bio-medical reasons and mental wellbeing and physical ability, relationships dynamics, and socioeconomic reasons. The facilitators were grouped under the following thematic frames: bio-medical benefits and benefits related to physical ability, feelings and emotions and confidence improvements, therapist and group relationships dynamics and activity related reasons.

Conclusions

We conclude that institutionalized older people living with dementia, even those who are physically frail, incontinent and/or have mild dementia can demonstrate certain level of exercise adherence, and therefore can respond positively to exercise programs. Tailored, individually-adjusted and supported physical activity, led by a knowledgeable, engaging and well communicating therapist/facilitator improves the adherence to group exercise interventions of institutionalized older people living with dementia.

     

Work and Non-Pathological Gambling

Most economists believe that people would value an additional $1,000 in income more if they were poor than if rich, but if so, people should not gamble according to standard expected utility theory. Thus, economists have been challenged to explain the pervasiveness of gambling in human behavior. A recently proposed solution to this theoretical challenge (Nyman 2004; Nyman et al. in Journal of Socio-Economics 37:2492–2504, 2008) suggests that, because having to work for one’s income is a fact of life in market economies, many individuals view the winnings from gambling not only as additional income, but as additional income for which one does not need to work. As a result, individuals, and especially those who are disadvantaged in the labor market, attach a utility premium to gambling winnings and gamble because of that. This utility premium would explain the pervasiveness of gambling in society, especially among the economically disadvantaged. This paper reviews the economic approaches to explaining non-pathological gambling, presents an overview of the new theory, and uses data from the National Epidemiological Survey of Alcohol and Related Conditions from 2001 to test it. The results indicate that the respondent’s work characteristics explain the decision to gamble in a way that is consistent with theory.     

Using ordinal variables to measure multidimensional poverty in Egypt and Jordan

This paper examines the empirical relevance of recent methodological refinements to the “counting approach” to multidimensional poverty measurement. It provides an empirical illustration based on data available in the Demographic and Health Surveys of Egypt and Jordan. The paper relies on the general framework proposed by Silber and Yalonetzky (2013) to compare multidimensional poverty measures, such as the Multidimensional Poverty Index (MPI) and others that are sensitive to the distribution of deprivation counts among individuals. It thus computes the measures introduced by Chakravarty and D’Ambrosio, 2006 and Rippin (2010) as well as indices based on the extension of the Aaberge and Peluso (2012), suggested by Silber and Yalonetzky (2013). It appears that it is useful to consider several multidimensional poverty measures when analyzing national poverty trends and when making a distinction between urban and rural areas.     

Social Networks,Migration, and Care in Tanzania

This paper explores the impacts of the HIV/AIDS epidemic on children and families in northern Tanzania using the concept of social resilience.1 1. This paper is based on a presentation entitled, “Social Networks, Migration and Care in Tanzania: Supporting Women, Children and Young People's Resilience,” prepared for the 2nd African Conference on the Social Aspects of HIV/AIDS Research, International Convention Centre, Cape Town, May 9–12, 2004, organized by the Human Sciences Research Council, South Africa (see: www.sahara.org.za). View all notes The study is based on the findings of child-focused research with street children and children and families from HIV/AIDS-affected households. The paper illustrates the coping strategies that children and young people, and parents and caregivers adopt at the household level. In particular, it examines how the burden of care affects different generations of women and highlights their resilience, together with the importance of social networks and the fluidity of movement between rural and urban areas. The research suggests that migrating to urban areas to seek a living in the informal sector represents a survival strategy adopted by some children and young people orphaned by AIDS when their families and communities are unable or unwilling to support them. The paper concludes by exploring parents’, caregivers’, children's, and young people's views on the forms of social support that would promote their resilience and thereby help to mitigate the impacts of the epidemic at the household level.     

Gender Differences in Charitable Giving in Great Britain

The predominant part of the literature states that women are more likely to donate to charitable causes but men are more generous in terms of the amount given. The last result generally derives from the focus on mean amount given. This article examines gender differences in giving focusing on the distribution of amounts donated and the probability of giving using micro-data on individual giving to charitable causes for Great Britain. Results indicate that women are generally more generous than men also in terms of the amounts donated. Quantile regression analysis shows that this pattern is robust if we take into account gender differences in individual characteristics such as household structure, education, and income. The article also investigates differences in gender preferences for varying charitable causes. Results are presented separately for single and married people, highlighting the very different gender patterns of giving behaviour found in the two groups.