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The effects of social welfare on
Do social-welfare policies reduce poverty? A cross-national assessment
''Social Forces, 77''(3), 1119–39. Empirical evidence suggests that taxes and transfers considerably reduce poverty in most countries whose welfare states commonly constitute at least a fifth of GDP.Zachary A. Goldfarb (9 December 2013)
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America's Social Democratic Future
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Timothy Smeeding used data from the
Poor People in Rich Nations: The United States in Comparative Perspective
Table 4, "The Antipoverty Effect of Government Spending: Percent of All Persons Poor". ''Journal of Economic Perspectives—Volume 20, Number 1—Winter 2006 —Pp. 69 –90''.
Two studies compare countries internationally before and after implementing social welfare programs. Using data from the Luxembourg Income Study, Bradley et al. and Lane Kenworthy measure the poverty rates both in relative terms (poverty defined by the respective governments) and absolute terms (poverty defined by 40% of United States median income), respectively. Kenworthy's study also adjusts for economic performance and shows that the economy made no significant difference in uplifting people out of poverty.
The studies look at the different countries from 1960 to 1991 (Kenworthy) and from 1970 to 1997 (Bradley et al.). Both these periods are roughly when major welfare programs were implemented such as the
The effects of social welfare on poverty
Poverty is the state of having few material possessions or little income. Poverty can have diverse social, economic, and political causes and effects. When evaluating poverty in ...
have been the subject of various studies.
Studies have shown that in welfare states
A welfare state is a form of government in which the state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal opportunity, equitabl ...
, poverty decreases after countries adopt welfare programs. Kenworthy, L. (1999)Do social-welfare policies reduce poverty? A cross-national assessment
''Social Forces, 77''(3), 1119–39. Empirical evidence suggests that taxes and transfers considerably reduce poverty in most countries whose welfare states commonly constitute at least a fifth of GDP.Zachary A. Goldfarb (9 December 2013)
''
The Washington Post
''The Washington Post'' (also known as the ''Post'' and, informally, ''WaPo'') is an American daily newspaper published in Washington, D.C. It is the most widely circulated newspaper within the Washington metropolitan area and has a large nati ...
.'' Retrieved 15 January 2015. Kenworthy, Lane (February 2014)America's Social Democratic Future
''
Foreign Affairs
''Foreign Affairs'' is an American magazine of international relations and U.S. foreign policy published by the Council on Foreign Relations, a nonprofit, nonpartisan, membership organization and think tank specializing in U.S. foreign policy and ...
.'' Retrieved 8 February 2014. See also: Kenworthy, Lane (2014). ''Social Democratic America.'' Oxford University Press
Oxford University Press (OUP) is the university press of the University of Oxford. It is the largest university press in the world, and its printing history dates back to the 1480s. Having been officially granted the legal right to print books ...
. In 2013, the Organisation for Economic Co-operation and Development
The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organization, intergovernmental organisation with 38 member countries ...
asserted that welfare spending is vital in reducing the ever-expanding global wealth gap.Wealth Gap Widens In Rich Countries As Austerity Threatens To Worsen Inequality: OECD''
The Huffington Post
''HuffPost'' (formerly ''The Huffington Post'' until 2017 and sometimes abbreviated ''HuffPo'') is an American progressive news website, with localized and international editions. The site offers news, satire, blogs, and original content, and ...
.'' Retrieved 26 July 2013.
Table of effect
Timothy Smeeding used data from the Luxembourg Income Study
LIS Cross-National Data Center, formerly known as the Luxembourg Income Study (LIS), is a non-profit organization registered in Luxembourg which produces a cross-national database of micro-economic income data for social science research. The proj ...
to determine the effectiveness of anti-poverty and welfare programs on poverty reduction. The data for all the countries was from the year 2000 with the exception of the United Kingdom and the Netherlands for which the data was from 1999.Smeeding, Timothy (2006)Poor People in Rich Nations: The United States in Comparative Perspective
Table 4, "The Antipoverty Effect of Government Spending: Percent of All Persons Poor". ''Journal of Economic Perspectives—Volume 20, Number 1—Winter 2006 —Pp. 69 –90''.
Table of poverty levels pre- and post-welfare
Two studies compare countries internationally before and after implementing social welfare programs. Using data from the Luxembourg Income Study, Bradley et al. and Lane Kenworthy measure the poverty rates both in relative terms (poverty defined by the respective governments) and absolute terms (poverty defined by 40% of United States median income), respectively. Kenworthy's study also adjusts for economic performance and shows that the economy made no significant difference in uplifting people out of poverty.
The studies look at the different countries from 1960 to 1991 (Kenworthy) and from 1970 to 1997 (Bradley et al.). Both these periods are roughly when major welfare programs were implemented such as the War on Poverty
The war on poverty is the unofficial name for legislation first introduced by United States President Lyndon B. Johnson during his State of the Union address on January 8, 1964. This legislation was proposed by Johnson in response to a national p ...
in the United States. The results of both studies show that poverty has been significantly reduced during the periods when major welfare programs were created.
See also
*Basic income
Universal basic income (UBI) is a social welfare proposal in which all citizens of a given population regularly receive an unconditional transfer payment, that is, without a means test or need to work. It would be received independently of a ...
* Criticisms of welfare
The modern welfare state has been criticized on economic and moral grounds from all ends of the political spectrum. Many have argued that the provision of Taxation, tax-funded Service (economics), services or transfer payments reduces the incent ...
* Involuntary unemployment
Involuntary unemployment occurs when a person is unemployed despite being willing to work at the prevailing wage. It is distinguished from voluntary unemployment, where a person refuses to work because their reservation wage is higher than the prev ...
* Welfare economics
* Welfare trap
The welfare trap (or unemployment trap or poverty trap in British English) theory asserts that taxation and welfare systems can jointly contribute to keep people on social insurance because the withdrawal of means-tested benefits that comes with ...
Notes
References
{{DEFAULTSORT:Welfare's Effect On Poverty Research on poverty International development Welfare