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Putting Poverty in Political Context: A Multi-Level Analysis of Working-Aged Poverty Across 18 Affluent Democracies

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  • David Brady
  • Jennifer Moren Cross
  • Andrew Fullerton

Abstract

Our study analyzes how political context, embodied by the welfare state and Leftist political actors, shapes individual poverty. Using the Luxembourg Income Study, we conduct a multilevel analysis of working-aged adult poverty across 18 affluent Western democracies. Our index of welfare generosity has a negative effect on poverty net of individual characteristics and structural context. For each standard deviation increase in welfare generosity, the odds of poverty decline by a factor of 2.3. The odds of poverty in the U.S. (the least generous welfare state) are greater by a factor of 16.6 than a person with identical characteristics in Denmark (the most generous welfare state). Significant interaction effects suggest that welfare generosity reduces the extent to which low education and the number of children increase poverty. Also, welfare generosity reduces poverty among those with low education, single mother households, and young households. We show that Leftist parties and union density reduce the odds of poverty, however their effects channel through the welfare state. Ultimately, poverty is shaped both by individual characteristics and the political context in which that individual resides.

Suggested Citation

  • David Brady & Jennifer Moren Cross & Andrew Fullerton, 2008. "Putting Poverty in Political Context: A Multi-Level Analysis of Working-Aged Poverty Across 18 Affluent Democracies," LIS Working papers 487, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:487
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    1. Mead, Lawrence M., 1997. "It Takes a Nation: A New Agenda for Fighting Poverty. By Rebecca M. Blank. New York: Russell Sage Foundation; Princeton, NJ: Princeton University Press, 1997. 340p. $29.95," American Political Science Review, Cambridge University Press, vol. 91(4), pages 960-961, December.
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    3. Joakim Palme & Walter Korpi, 1998. "The Paradox of Redistribution and Strategies of Equality: Welfare State Institutions, Inequality and Poverty in the Western Countries," LIS Working papers 174, LIS Cross-National Data Center in Luxembourg.
    4. Esping-Andersen, Gosta, 1999. "Social Foundations of Postindustrial Economies," OUP Catalogue, Oxford University Press, number 9780198742005, Decembrie.
    5. Lars Osberg, 2000. "Poverty in Canada and the United States: measurement, trends, and implications," Canadian Journal of Economics, Canadian Economics Association, vol. 33(4), pages 847-877, November.
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    Cited by:

    1. Gornick, Janet C. & Jäntti, Markus, 2012. "Child poverty in cross-national perspective: Lessons from the Luxembourg Income Study," Children and Youth Services Review, Elsevier, vol. 34(3), pages 558-568.
    2. Markus Jäntti & Janet Gornick, 2009. "Child Poverty in Upper-Income Countries: Lessons from the Luxembourg Income Study," LIS Working papers 509, LIS Cross-National Data Center in Luxembourg.
    3. E. Bárcena-Martín & B. Lacomba & A. I. Moro-Egido & S. Pérez-Moreno, 2014. "Country Differences in Material Deprivation in Europe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 802-820, December.
    4. Markus Jäntti & Janet Gornick, 2011. "Child Poverty in Comparative Perspective: Assessing the Role of Family Structure and Parental Education and Employment," LIS Working papers 570, LIS Cross-National Data Center in Luxembourg.

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