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How Effective is the British Governments Attempt to Reduce Child Poverty?

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Author Info

  • David Piachaud
  • Holly Sutherland

Abstract

The new Labour Government in Britain has made the reduction of child poverty one of its central objectives. This paper describes the specific initiatives involved in Labour's approach and weighs them up in terms of their potential impact. After setting out the extent of the problem of child poverty, the causes are discussed and Britain's problem is set in international perspective. The impact on child poverty of policies designed to raise incomes directly is analysed using micro-simulation modelling. A major emphasis of current policy is on the promotion of paid work, and we explore the potential for poverty reduction of increasing the employment of parents. We find that at its maximum, increasing paid work could roughly double the reduction in child poverty achieved by tax and benefit policies alone - a combined decrease of 1.85 million children in poverty. However, a more realistic forecast of increases in parental employment suggests that the number of children in poverty may be reduced by 1 million by 2002. The policies that address long-term disadvantage are also discussed and finally the whole programme is assessed and future strategy is considered.

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File URL: http://sticerd.lse.ac.uk/dps/case/cp/CASEpaper38.pdf
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Bibliographic Info

Paper provided by Centre for Analysis of Social Exclusion, LSE in its series CASE Papers with number case38.

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Date of creation: Mar 2000
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Handle: RePEc:cep:sticas:case38

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Web page: http://sticerd.lse.ac.uk/case/_new/publications/default.asp

Related research

Keywords: Child poverty; tax and benefit policy; welfare-to-work;

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References

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  1. Immervoll H & Mitton L & O'donoghue C & Sutherland H, 1999. "Budgeting for fairness? The distributional effects of three Labour Budgets," Microsimulation Unit Research Notes MU/RN/32, Microsimulation Unit at the Institute for Social and Economic Research.
  2. Bruce Bradbury & Markus Jantti, 1999. "Child Poverty across Industrialized Nations," Innocenti Occasional Papers, Economic Policy Series iopeps99/70, UNICEF Innocenti Research Centre.
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Citations

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Cited by:
  1. Levy, Horacio & Lietz, Christine & Sutherland, Holly, 2006. "Alternative Tax-Benefit Strategies to Support Children in the European Union. Recent Reforms in Austria, Spain and the UK," Economics Series 185, Institute for Advanced Studies.
  2. Sutherland, Holly, 2001. "Reducing child poverty in Europe: what can static microsimulation models tell us?," EUROMOD Working Papers EM5/01, EUROMOD at the Institute for Social and Economic Research.
  3. Herwig Immervoll & Horacio Levy & José Ricardo Nogueira & Cathal O´Donoghue & Rozane Bezerra de Siqueira, 2005. "The Impact of Brazil´s Tax-Benefit System on Inequality and Poverty," Ibero America Institute for Econ. Research (IAI) Discussion Papers 117, Ibero-America Institute for Economic Research.
  4. Sutherland, H., 2001. "The National Minimum Wage and In-work Poverty," Cambridge Working Papers in Economics 0111, Faculty of Economics, University of Cambridge.
  5. Hélène Périvier-Timbeau, 2003. "Les mesures fiscales d’incitation au travail des personnes non qualifiées," Sciences Po publications info:hdl:2441/3464, Sciences Po.
  6. Richard Dickens & David T. Ellwood, 2001. "Whither Poverty in Great Britain and the United States? The Determinants of Changing Poverty and Whether Work Will Work," NBER Working Papers 8253, National Bureau of Economic Research, Inc.
  7. Richard Dickens & David T. Ellwood, 2001. "Whither poverty in Great Britain and the United States? The determinants of changing poverty and whether work will work," LSE Research Online Documents on Economics 20109, London School of Economics and Political Science, LSE Library.
  8. Herwig Immervoll & Cathal O'Donoghue, 2003. "Towards A Multi-Purpose Framework For Tax-Benefit Microsimulation," Computational Economics 0302002, EconWPA.
  9. Micklewright, John, 2004. "Child Poverty in English-Speaking Countries," IZA Discussion Papers 1113, Institute for the Study of Labor (IZA).
  10. repec:ese:iserwp:2001-16 is not listed on IDEAS
  11. repec:spo:wpecon:info:hdl:2441/3861 is not listed on IDEAS
  12. John Hills, 2000. "Taxation for the Enabling State," CASE Papers case41, Centre for Analysis of Social Exclusion, LSE.
  13. Herwig Immervoll & Cathal O'Donoghue, 2009. "Towards a multi-purpose framework for tax-benefit microsimulation: lessons from EUROMOD," International Journal of Microsimulation, Interational Microsimulation Association, vol. 2(2), pages 43-54.
  14. Holly Sutherland & Christine Lietz & Horacio Levy, 2005. "Alternative Tax-benefit Strategies to Support Children in the European Union. Recent Reforms in Austria, Spain and the United Kingdom," Innocenti Working Papers inwopa05/33, UNICEF Innocenti Research Centre.
  15. Mike Brewer & Paul Gregg, 2002. "Eradicating Child Poverty in Britain: Welfare Reform and Children Since 1997," The Centre for Market and Public Organisation 02/052, Department of Economics, University of Bristol, UK.
  16. repec:spo:wpecon:info:hdl:2441/3464 is not listed on IDEAS

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