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Child Poverty in Sweden and the United States: The Effect of Social Transfers and Parental Labor Force Participation

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  • Markus Jäntti
  • Sheldon Danziger

Abstract

The authors compare the incidence and some of the causes of child poverty in Sweden and the United States in selected years using data from the Luxembourg Income Study. The U.S. sample is restricted to white non-hispanic children to present the most favorable comparison with Sweden's more homogeneous population. When parents' labor force participation and demographic characteristics are taken into account, the proportion of children in families whose income prior to social transfers and taxes was below the poverty line (defined as 40% of median disposable income adjusted for family size) is very similar in the two countries. Because all poor children in Sweden received transfers and many in the United States did not, however, and because transfers were more generous in Sweden, a much lower percentage of children in Sweden than in the United States were poor after social transfers and taxes, regardless of parents' work effort or other characteristics.

Suggested Citation

  • Markus Jäntti & Sheldon Danziger, 1994. "Child Poverty in Sweden and the United States: The Effect of Social Transfers and Parental Labor Force Participation," ILR Review, Cornell University, ILR School, vol. 48(1), pages 48-64, October.
  • Handle: RePEc:sae:ilrrev:v:48:y:1994:i:1:p:48-64
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    Cited by:

    1. Marina Kolosnitsyna & Anna Philippova, 2017. "Family Benefits and Poverty: The Case of Russia," HSE Working papers WP BRP 03/PSP/2017, National Research University Higher School of Economics.
    2. Philippova, Anna & Kolosnitsyna, Marina, 2018. "Child benefits’ impact on poverty: Multivariate probit estimates," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 52, pages 62-90.
    3. Kolosnitsyna, Marina G. (Колосницына, Марина) & Philippova, Anna V. (Филиппова, Анна), 2017. "Child Benefits and Poverty: The Case of Russia [Детские Пособия И Бедность В России]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 4, pages 118-153, August.
    4. Matthew Lindquist & Gabriella Sjögren Lindquist, 2012. "The dynamics of child poverty in Sweden," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1423-1450, October.

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