IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Reducing Poverty while Increasing Employment: A Primer on Alternative Strategies, and a Blueprint

Listed author(s):
  • Robert Haveman

Policy to reduce poverty has often foundered on the issue of work incentives. The issue is a manifestation of the traditional conflict between equity and efficiency; the redistribution of income from higher to lower income people typically leads to reduced incentives for both groups to supply labor to the market, or to exercise initiative. This conflict is also known as the "poverty trap"--with income transfer (welfare) programs in place, those with low earned income have a reduced incentive to seek and accept employment, and as a result appear trapped in poverty. This paper discusses the primary policy strategies for reducing poverty while maintaining work incentives that have been analyzed in the literature. These strategies have been presented in a context in which a structure of income support policies and labor market constraints already exists. Existing policies typically have two characteristics: they are categorical and piecemeal in their coverage, and they contain serious ... Réduire la pauvreté et accroître l'emploi : Considérations de base et projets sur les stratégies alternatives Les politiques visant à reduire la pauvreté ont souvent échouées à cause du besoin de ne pas diminuer les incitations à travailler. Il s’agit d’une illustration de la tension classique entre l’équité et l’efficience car la redistribution des revenus à partir des plus aisés en faveur de ceux plus modestes réduit les incitations aux deux groupes d’offrir leur main d’oeuvre ou de prendre des initiatives. Cette situation est souvent identifiée par le terme de "piège de la pauvreté" car la mise en place de mesures de transfert des revenues réduit les incitations à ceux dont les gains salariaux sont peu importants de rechercher un emploi et d’y rester avec la conséquence qu’ils paraissent figés dans la misère. L’étude considère les differentes strategies de base mise en avant dans la litterature visant à reduire la pauvreté tout en préservant les incitations au travail. Ces strategies sont présentées dans le cadre d’un système de soutien des revenues accompané des contraintes du marché ...

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:
Download Restriction: no

Paper provided by OECD Publishing in its series OECD Jobs Study Working Papers with number 7.

in new window

Date of creation: 01 Jan 1995
Handle: RePEc:oec:elsaac:7-en
Contact details of provider: Postal:
2 rue Andre Pascal, 75775 Paris Cedex 16

Phone: 33-(0)-1-45 24 82 00
Fax: 33-(0)-1-45 24 85 00
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

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:oec:elsaac:7-en. 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: ()

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.