IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper

The Welfare State and Anti-Poverty Policy in Rich Countries

  • Ive Marx
  • Brian Nolan
  • Javier Olivera

This paper is prepared as a chapter for the Handbook of Income Distribution, Volume 2 (edited by A. B. Atkinson and F. Bourguignon, Elsevier-North Holland, forthcoming). Like the other chapters in the volume (and its predecessor), the aim is to provide a comprehensive review of a particular area of research. The aim of this chapter is to highlight some key aspects of recent economic research on the welfare state and anti-poverty policy in rich countries, and explore their implications. We begin with the conceptualisation and measurement of poverty, before sketching out some core features and approaches to the welfare state and anti-poverty policies. We then focus on the central plank of the modern welfare state's efforts to address poverty, namely social protection, discussing in turn the inactive working-age population, child income support, in-work poverty, and retirement and old-age pensions. After that we discuss social spending on other than cash transfers: the labour market, education, training and activation, and finally intergenerational transmission, childhood and neighbourhoods. We also discuss the welfare state and anti-poverty policy in the context of the economic crisis which began in 2007-8, and the implications for strategies aimed at combining economic growth and employment with making serious inroads into poverty. We conclude with highlighting directions for future research.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.centrumvoorsociaalbeleid.be/sites/default/files/CSB%20Working%20Paper%2014%2003_April2014.pdf
Download Restriction: no

Paper provided by Herman Deleeck Centre for Social Policy, University of Antwerp in its series Working Papers with number 1403.

as
in new window

Length:
Date of creation: Apr 2014
Date of revision:
Handle: RePEc:hdl:wpaper:1403
Contact details of provider: Web page: http://www.centreforsocialpolicy.eu
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Lane, Philip R. & Milesi-Ferretti, Gian Maria, 2012. "External adjustment and the global crisis," Journal of International Economics, Elsevier, vol. 88(2), pages 252-265.
  2. Eric A. Hanushek & Ludger Wößmann, 2005. "Does Education Tracking Affect Performance and Inequality? Differences-In-Differences Evidence Across Countries," Discussion Papers 04-027, Stanford Institute for Economic Policy Research.
  3. Koen Caminada & Kees Goudswaard & Olaf Van Vliet, 2010. "Patterns of Welfare State Indicators in the EU: Is there Convergence?," Journal of Common Market Studies, Wiley Blackwell, vol. 48, pages 529-556, 06.
  4. Dolls, Mathias & Fuest, Clemens & Peichl, Andreas, 2010. "Automatic stabilisers and economic crisis: US vs Europe," EUROMOD Working Papers EM2/10, EUROMOD at the Institute for Social and Economic Research.
  5. V. Joseph Hotz, 2003. "The Earned Income Tax Credit," NBER Chapters, in: Means-Tested Transfer Programs in the United States, pages 141-198 National Bureau of Economic Research, Inc.
  6. Paul Gregg & Rosanna Scutella & Jonathan Wadsworth, 2010. "Reconciling workless measures at the individual and household level. Theory and evidence from the United States, Britain, Germany, Spain and Australia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(1), pages 139-167, January.
  7. Raj Chetty & John N. Friedman & Emmanuel Saez, 2012. "Using Differences in Knowledge Across Neighborhoods to Uncover the Impacts of the EITC on Earnings," NBER Working Papers 18232, National Bureau of Economic Research, Inc.
  8. Heining, Jörg & Card, David & Kline, Patrick, 2013. "Workplace Heterogeneity and the Rise of West German Wage Inequality," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80034, Verein für Socialpolitik / German Economic Association.
  9. James J. Heckman & Sergio Urzua, 2009. "Comparing IV With Structural Models: What Simple IV Can and Cannot Identify," NBER Working Papers 14706, National Bureau of Economic Research, Inc.
  10. Atkinson, Tony & Cantillon, Bea & Marlier, Eric & Nolan, Brian, 2002. "Social Indicators: The EU and Social Inclusion," OUP Catalogue, Oxford University Press, number 9780199253494, May.
  11. Dolls, Mathias & Fuest, Clemens & Peichl, Andreas, 2010. "Automatic Stabilizers, Economic Crisis and Income Distribution in Europe," IZA Discussion Papers 4917, Institute for the Study of Labor (IZA).
  12. Dang, Thai-Thanh & Immervoll, Herwig & Mantovani, Daniela & Orsini, Kristian & Sutherland, Holly, 2006. "An Age Perspective on Economic Well-Being and Social Protection in Nine OECD Countries," IZA Discussion Papers 2173, Institute for the Study of Labor (IZA).
  13. Hilary W. Hoynes & Marianne E. Page & Ann Huff Stevens, 2006. "Poverty in America: Trends and Explanations," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 47-68, Winter.
  14. Nolan, Brian & Russell, Helen, 2001. "Non-Cash Benefits and Poverty in Ireland," Research Series, Economic and Social Research Institute (ESRI), number PRS39.
  15. Aaberge, Rolf & Bhuller, Manudeep & Langørgen, Audun & Mogstad, Magne, 2010. "The Distributional Impact of Public Services When Needs Differ," IZA Discussion Papers 4826, Institute for the Study of Labor (IZA).
  16. Callan, Tim & Keane, Claire, 2009. "Non-cash Benefits and the Distribution of Economic Welfare," The Economic and Social Review, Economic and Social Studies, vol. 40(1), pages 49-71.
  17. Bea Cantillon, 2011. "The Paradox of the Social Investment State. Growth, Employment and Poverty in the Lisbon Era," Working Papers 1103, Herman Deleeck Centre for Social Policy, University of Antwerp.
  18. Mary Benedict & Kathryn Shaw, 1995. "The impact of pension benefits on the distribution of earned income," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(4), pages 740-757, July.
  19. Kenworthy, Lane, 2008. "Jobs with Equality," OUP Catalogue, Oxford University Press, number 9780199550609, May.
  20. David E. Card & Jochen Kluve & Andrea Weber, 2009. "Active Labor Market Policy Evaluations: A Meta-analysis," NRN working papers 2009-02, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  21. Miles Corak, 2001. "Are the Kids All Right? Intergenerational Mobility and Child Well-being in Canada," The Review of Economic Performance and Social Progress, in: Andrew Sharpe, Executive Director & France St-Hilaire, Vice-President , Research & Keith Banting, Di (ed.), The Review of Economic Performance and Social Progress 2001: The Longest Decade: Canada in the 1990s, volume 1 Centre for the Study of Living Standards;The Institutute for Research on Public Policy.
  22. Nolan, Brian & Whelan, Christopher T., 2011. "Poverty and Deprivation in Europe," OUP Catalogue, Oxford University Press, number 9780199588435, May.
  23. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
  24. Esping-Andersen, Gosta, 1999. "Social Foundations of Postindustrial Economies," OUP Catalogue, Oxford University Press, number 9780198742005, May.
  25. Tim Callan & Tim Smeeding & Panos Tsakloglou, 2008. "Short-run distributional effects of public education transfers to tertiary education students in seven European countries," Education Economics, Taylor & Francis Journals, vol. 16(3), pages 275-288.
  26. repec:pri:rpdevs:deaton_instruments_randomization_learning_all_04april_2010 is not listed on IDEAS
  27. Georgia Kaplanoglou & Vassilis T. Rapanos & Ioanna C. Bardakas, 2015. "Does Fairness Matter for the Success of Fiscal Consolidation?," Kyklos, Wiley Blackwell, vol. 68(2), pages 197-219, 05.
  28. Andrew Jones & Owen O'Donnell, . "Equivalence Scales and the Costs of Disability," Discussion Papers 94/12, Department of Economics, University of York.
  29. Sonja Bekker & Ton Wilthagen & Per Kongshøj Madsen & Jianping Zhou & Ralf Rogowski & Maarten Keune & Andranik Tangian, 2008. "Flexicurity – a European Approach to Labour Market Policy," Intereconomics- Review of European Economic Policy, Springer;German National Library of Economics;Centre for European Policy Studies (CEPS), vol. 43(2), pages 68-111, March.
  30. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," Journal of Economic Inequality, Springer, vol. 1(1), pages 25-49, April.
  31. Philippe Robert-Demontrond & R. Ringoot, 2004. "Introduction," Post-Print halshs-00081823, HAL.
  32. Marx, Ive & Vanhille, Josefine & Verbist, Gerlinde, 2011. "Combating In-Work Poverty in Continental Europe: An Investigation Using the Belgian Case," IZA Discussion Papers 6067, Institute for the Study of Labor (IZA).
  33. Bargain, Olivier & Orsini, Kristian, 2004. "In-Work Policies in Europe: Killing Two Birds with One Stone?," IZA Discussion Papers 1445, Institute for the Study of Labor (IZA).
  34. Aaberge, Rolf & Peluso, Eugenio, 2012. "A Counting Approach for Measuring Multidimensional Deprivation," IZA Discussion Papers 6589, Institute for the Study of Labor (IZA).
  35. Randolph L. Bruno & Riccardo Rovelli, 2010. "Labour Market Policies and Outcomes in the Enlarged EU," Journal of Common Market Studies, Wiley Blackwell, vol. 48, pages 661-685, 06.
  36. Margit Kraus, 2004. "Social Security Strategies and Redistributive Effects in European Social Transfer Systems," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 50(3), pages 431-457, 09.
  37. Holly Sutherland & Miles Corak & Christine Lietz, 2005. "The Impact of Tax and Transfer Systems on Children in the European Union," Papers inwopa05/30, Innocenti Working Papers.
  38. Freeman, Richard B., 1998. "War of the models: Which labour market institutions for the 21st century?1," Labour Economics, Elsevier, vol. 5(1), pages 1-24, March.
  39. Raj Chetty, 2009. "Sufficient Statistics for Welfare Analysis: A Bridge Between Structural and Reduced-Form Methods," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 451-488, 05.
  40. Janet Currie & Firouz Gahvari, 2008. "Transfers in Cash and In-Kind: Theory Meets the Data," Journal of Economic Literature, American Economic Association, vol. 46(2), pages 333-83, June.
  41. Duncan, Greg J, et al, 1993. "Poverty Dynamics in Eight Countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 6(3), pages 215-34.
  42. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281.
  43. Kenworthy, Lane, 2011. "Progress for the Poor," OUP Catalogue, Oxford University Press, number 9780199591527, May.
  44. Holly Sutherland & Francesco Figari, 2013. "EUROMOD: the European Union tax-benefit microsimulation model," International Journal of Microsimulation, International Microsimulation Association, vol. 1(6), pages 4-26.
  45. Jean-Yves Duclos & Paul Makdissi, 2005. "Sequential Stochastic Dominance And The Robustness Of Poverty Orderings," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(1), pages 63-87, 03.
  46. Romina Boarini & Marco Mira d'Ercole, 2006. "Measures of Material Deprivation in OECD Countries," OECD Social, Employment and Migration Working Papers 37, OECD Publishing.
  47. Hills John, 2002. "Comprehensibility and Balance: The Case for Putting Indicators in Baskets," Politica economica, Società editrice il Mulino, issue 1, pages 95-98.
  48. Matsaganis, Manos & O'Donoghue, Cathal & Levy, Horacio & Coromaldi, Manuela & Mercader-Prats, M. & Rodrigues, Carlos Farinha & Toso, Stefano & Tsakloglou, Panos, 2004. "Child poverty and family transfers in Southern Europe," EUROMOD Working Papers EM2/04, EUROMOD at the Institute for Social and Economic Research.
  49. Figari, Francesco & Salvatori, Andrea & Sutherland, Holly, 2010. "Economic downturn and stress testing European welfare systems," ISER Working Paper Series 2010-18, Institute for Social and Economic Research.
  50. A. Atkinson, 2003. "Multidimensional Deprivation: Contrasting Social Welfare and Counting Approaches," Journal of Economic Inequality, Springer, vol. 1(1), pages 51-65, April.
  51. Michael Förster & Mark Pearson, 2002. "Income Distribution and Poverty in the OECD Area: Trends and Driving Forces," OECD Economic Studies, OECD Publishing, vol. 2002(1), pages 7-38.
  52. Rothe, Thomas & Giannelli, Gianna C. & Jaenichen, Ursula, 2013. "Doing well in reforming the labour market? Recent trends in job stability and wages in Germany," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79932, Verein für Socialpolitik / German Economic Association.
  53. François Bourguignon & Halsey F. Rogers, 2007. "Distributional effects of educational improvements: Are we using the wrog model?," Post-Print halshs-00754187, HAL.
  54. Rolf Aaberge & Magne Mogstad, 2015. "Inequality in current and lifetime income," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(2), pages 217-230, February.
  55. Richard Dickens & David T Ellwood, 2003. "Child Poverty in Britain and the United States," Economic Journal, Royal Economic Society, vol. 113(488), pages F219-F239, 06.
  56. Mayer, Susan E. & Lopoo, Leonard M., 2008. "Government spending and intergenerational mobility," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 139-158, February.
  57. Herwig Immervoll & Linda Richardson, 2011. "Redistribution Policy and Inequality Reduction in OECD Countries: What Has Changed in Two Decades?," OECD Social, Employment and Migration Working Papers 122, OECD Publishing.
  58. Carneiro, Pedro & Heckman, James J., 2003. "Human Capital Policy," IZA Discussion Papers 821, Institute for the Study of Labor (IZA).
  59. Erling Barth & Karl O. Moene, 2009. "The Equality Multiplier," NBER Working Papers 15076, National Bureau of Economic Research, Inc.
  60. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June.
  61. Marx, Ive & Salanauskaite, Lina & Verbist, Gerlinde, 2013. "The Paradox of Redistribution Revisited: And That It May Rest in Peace?," IZA Discussion Papers 7414, Institute for the Study of Labor (IZA).
  62. Eichhorst, Werner & Grienberger-Zingerle, Maria & Konle-Seidl, Regina, 2006. "Activation Policies in Germany: From Status Protection to Basic Income Support," IZA Discussion Papers 2514, Institute for the Study of Labor (IZA).
  63. James J. Heckman, 2010. "Building Bridges between Structural and Program Evaluation Approaches to Evaluating Policy," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 356-98, June.
  64. Brian Nolan & Christopher T. Whelan, 2010. "Using non-monetary deprivation indicators to analyze poverty and social exclusion: Lessons from Europe?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 305-325.
  65. Ruth Lupton, 2003. "Neighbourhood Effects: Can we measure them and does it matter?," CASE Papers case73, Centre for Analysis of Social Exclusion, LSE.
  66. L. Randall Wray & Stephanie Bell, 2004. "Introduction," Chapters, in: Credit and State Theories of Money, chapter 1 Edward Elgar Publishing.
  67. Kluve, Jochen, 2010. "The effectiveness of European active labor market programs," Labour Economics, Elsevier, vol. 17(6), pages 904-918, December.
  68. Willem Adema & Pauline Fron & Maxime Ladaique, 2011. "Is the European Welfare State Really More Expensive?: Indicators on Social Spending, 1980-2012; and a Manual to the OECD Social Expenditure Database (SOCX)," OECD Social, Employment and Migration Working Papers 124, OECD Publishing.
  69. Marx, Ive & Marchal, Sarah & Nolan, Brian, 2012. "Mind the Gap: Net Incomes of Minimum Wage Workers in the EU and the US," IZA Discussion Papers 6510, Institute for the Study of Labor (IZA).
  70. Jantti, Markus & Danziger, Sheldon, 2000. "Income poverty in advanced countries," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 6, pages 309-378 Elsevier.
  71. Lans Bovenberg & Casper van Ewijk, 2012. "The Future of Multi-Pillar Pension Systems," CESifo DICE Report, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 10(4), pages 16-20, December.
  72. Wang, Chen & Caminada, Koen, 2011. "Disentangling income inequality and the redistributive effect of social transfers and taxes in 36 LIS countries," MPRA Paper 32821, University Library of Munich, Germany.
  73. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, vol. 102(414), pages 1067-82, September.
  74. Mary Ellen Benedict & Kathryn Shaw, 1995. "The Impact of Pension Benefits on the Distribution of Earned Income," ILR Review, Cornell University, ILR School, vol. 48(4), pages 740-757, July.
  75. Ruth Lupton, 2003. "'Neighbourhood effects': can we measure them and does it matter?," LSE Research Online Documents on Economics 6327, London School of Economics and Political Science, LSE Library.
  76. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  77. Aaberge, Rolf & Björklund, Anders & Jäntti, Markus & Palme, Mårten & Pedersen, Peder & Smith, Nina & Wennemo, Tom, 1996. "Income Inequality and Income Mobility in the Scandinavian Countries Compared to the United States," SSE/EFI Working Paper Series in Economics and Finance 98, Stockholm School of Economics, revised Aug 2002.
  78. Moffitt, Robert, 1989. "Estimating the Value of an In-Kind Transfer: The Case of Food Stamps," Econometrica, Econometric Society, vol. 57(2), pages 385-409, March.
  79. Leigh Andrew, 2010. "Who Benefits from the Earned Income Tax Credit? Incidence among Recipients, Coworkers and Firms," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-43, May.
  80. Henning Lohmann, 2008. "Welfare States, Labour Market Institutions and the Working Poor: A Comparative Analysis of 20 European Countries," Discussion Papers of DIW Berlin 776, DIW Berlin, German Institute for Economic Research.
  81. Herwig Immervoll & Mark Pearson, 2009. "A Good Time for Making Work Pay? Taking Stock of In-Work Benefits and Related Measures across the OECD," OECD Social, Employment and Migration Working Papers 81, OECD Publishing.
  82. Rolf Aaberge & Audun Langørgen, 2003. "Measuring the Benefits from Public Services The Effects of Local Government Spending on the Distribution of Income in Norway," Discussion Papers 339, Statistics Norway, Research Department.
  83. Jean-Marc Burniaux & Thai-Thanh Dang & Douglas Fore & Michael F. Förster & Marco Mira d'Ercole & Howard Oxley, 1998. "Income Distribution and Poverty in Selected OECD Countries," OECD Economics Department Working Papers 189, OECD Publishing.
  84. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July.
  85. Caminada, Koen & Goudswaard, Kees & Wang, Chen, 2012. "Disentangling income inequality and the redistributive effect of taxes and transfers in 20 LIS countries over time," MPRA Paper 42350, University Library of Munich, Germany.
  86. Eissa, Nada & Hoynes, Hilary Williamson, 2004. "Taxes and the labor market participation of married couples: the earned income tax credit," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1931-1958, August.
  87. Angus Deaton, 2010. "Instruments, randomization, and learning about development," Working Papers 1224, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:hdl:wpaper:1403. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wim Van Lancker)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.