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Wiley InterScience | ||
  Review of Income and WealthVolume 52 Issue 2, Pages 261 - 284 Published Online: 26 May 2006 Journal compilation © 2009 International Association for Research in Income and Wealth Published on behalf of the International Association for Research in Income and Wealth
Abstract | References | Full Text: PDF (Size: 136K) | Related Articles | Citation Tracking  THE INS AND OUTS OF POVERTY IN ADVANCED ECONOMIES: GOVERNMENT POLICY AND POVERTY DYNAMICS IN CANADA, GERMANY, GREAT BRITAIN, AND THE UNITED STATES Note: For their comments, the author thanks Peggy O'Brien-Strain, Mary Daly, and two anonymous referees. This work is based in part on the author's contribution to Chapter 2 of the OECD Employment Outlook June 2001 (in conjunction with Paul Swaim and Agnés Puymoyen); posthumous thanks go to Norman Bowers for initiating the project. Jaclyn Hodges and Geoff MacDonald provided invaluable research support. Special thanks go to Dean Lillard of Cornell University for his help with the CNEF files, various staff at Statistics Canada for their help with the Canadian SLID portion of the CNEF (especially Rolande Laterreur Saumier), and Stephen Jenkins for advice on use of the BHPS portion of the CNEF. None of these individuals are responsible for any errors. The views expressed in this paper are those of the author and should not be attributed to the Federal Reserve Bank of San Francisco or the Federal Reserve System. Copyright © 2006 The Authors; Journal compilation © International Association for Research in Income and Wealth 2006 ABSTRACTComparative analysis of poverty dynamics—transitions and persistence—can yield important insights about the nature of poverty and the effectiveness of alternative policy responses. This manuscript compares poverty dynamics in four advanced industrial countries (Canada, unified Germany, Great Britain, and the United States) for overlapping six-year periods in the 1990s, focusing on the impact of government policies. The data indicate that relative to measured cross-sectional poverty rates, poverty persistence is higher in North America than in Europe. Most poverty transitions, and the prevalence of chronic poverty, are associated with employment instability and family dissolution in all four countries. However, government tax-and-transfer policies are more effective at reducing poverty persistence in Europe than in North America. |
