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Journal ArticleDOI

For the Poor, but Not Only the Poor: On Optimal Pro-Poorness in Redistributive Policies

01 Sep 2016-Social Forces (Oxford University Press)-Vol. 95, Iss: 1, pp 1-24
TL;DR: In this paper, a detailed disaggregated analysis reveals that most redistributive systems do contain subsystems that are strongly targeted to the poor by intent and by design, and they also show that a disaggregation over the function of social transfers is very relevant: old-age benefits are an important driver of the weak overall association.
Abstract: The optimal design of redistributive systems continues to be a matter of considerable academic and public debate, with the optimal extent and intensity of pro-poor targeting remaining a key issue of contention. This article shows, first, that the overall relationship between pro-poor targeting and income inequality reduction is very weak. Although occasionally the association is positive, it is not robust, very weak, and effectively zero with various reasonable methodological decisions. Second, and more importantly, a detailed disaggregated analysis reveals that the most redistributive systems do contain subsystems that are strongly targeted to the poor by intent and by design. Third, we also show that a disaggregation over the function of social transfers is very relevant: old-age benefits are an important driver of the weak overall association, while for family benefits we find a positive relationship. Absolutely key, however, is our finding that means-tested systems play a crucial role in bringing about redistributive effectiveness, even if their relative size is small. We thus shed new light on the politics of targeting. While it remains important that broad sections of the electorate benefit from social transfers, strong pro-poor targeting within such a context is possible and indeed essential for real redistributive impact. Benefits for the poor need not be poor benefits if and when these are embedded in benefit systems that meet wider redistributive needs and rationales.
Citations
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Journal ArticleDOI
TL;DR: In this paper, a redistribuição governamental através do sistema de benefícios fiscais afecta estas tendências.
Abstract: Será que a desigualdade de rendimentos aumentou durante os últimos tempos? Quem ganhou e quem perdeu neste processo? Este processo afectou todos os países da OCDE uniformemente? Em que medida é que maiores desigualdades de rendimentos são a consequência de maiores diferenças nos rendimentos dos trabalhadores e até que ponto são afectados por outros factores? Finalmente, como é que a redistribuição governamental através do sistema de benefícios fiscais afecta estas tendências?

635 citations

Book
02 Oct 2019
TL;DR: Lane Kenworthy as mentioned in this paper argues that the U.S. is likely to move toward social democratic capitalism in coming decades, despite formidable political obstacles, and lays out a detailed policy agenda that could alleviate many of America's problems.
Abstract: What configuration of institutions and policies is most conducive to human flourishing? The historical and comparative evidence suggests that the answer is social democratic capitalism — a democratic political system, a capitalist economy, good elementary and secondary schooling, a big welfare state, pro-employment public services, and moderate regulation of product and labor markets. Lane Kenworthy shows that this system improves living standards for the least well-off, enhances economic security, and boosts equality of opportunity. And it does so without sacrificing other things we want in a good society, from liberty to economic growth to health and happiness. Its chief practitioners have been the Nordic nations. The Nordics have gone farther than other rich democratic countries in coupling a big welfare state with public services that promote high employment and modest product- and labor-market regulations. Many believe this system isn’t transferable beyond Scandinavia, but Kenworthy shows that social democratic capitalism and its successes can be replicated in other affluent nations, including the United States. Today, the U.S. lags behind other countries in economic security, opportunity, and shared prosperity. If the U.S. expanded existing social programs and added some additional ones, many Americans would have better lives. Kenworthy argues that, despite formidable political obstacles, the U.S. is likely to move toward social democratic capitalism in coming decades. As a country gets richer, he explains, it becomes more willing to spend more in order to safeguard against risk and enhance fairness. He lays out a detailed policy agenda that could alleviate many of America’s problems.

40 citations

Journal ArticleDOI
TL;DR: Analysis of data from the Belgian National Election Study by means of structural equation modelling confirms that the five deservingness principles are distinct dimensions that are differently related to social structural variables and have divergent consequences for policy preferences, and corroborates that the measurement instrument is capable of tapping into the essence of these criteria.

37 citations

Journal ArticleDOI
TL;DR: In this article, the authors analyse the sharp rise in poverty among working-age singles and single parents in Sweden and show that the return of mass unemployment in a dual-earner society like Sweden leads to a large increase in poverty.
Abstract: In this study, we analyse the sharp rise in poverty among working-age singles and single parents in Sweden. In a dual-earner society like Sweden, we show that the return of mass unemployment in com ...

25 citations

Posted Content
TL;DR: In this article, the authors assess the redistributive impact of tax and transfer cofigurations across 22 OECD countries for the period 1999-2013 using observational micro data from the Luxembourg Income Study (LIS).
Abstract: Using observational micro data from the Luxembourg Income Study (LIS) we assess the redistributive impact of tax and transfer cofigurations across 22 OECD countries for the period 1999-2013. After imputing missing tax data (employer social security contributions), we measure the reduction of income inequality due to four key levers of tax and transfer systems: the average tax rate, tax progressivity, the average transfer rate, and transfer targeting. Our methodological improvements provide the following results: First, tax redistribution dominates transfer redistribution (excluding pensions) in most countries. Second, targeting explains very little of the cross-country variation in inequality reduction. In contrast, both progressivity of taxes and the average tax rate have large impacts on redistribution. Third, we observe the trace of political trade-offs. High average tax rates do not appear in conjunction with highly progressive tax systems.

23 citations

References
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Book
01 Nov 1984
TL;DR: In this paper, the authors discuss the incentives to fail and the destruction of status rewards in the context of social policy, focusing on short-term gains and the consequences of failure.
Abstract: * Prologue A Generous Revolution * The Kennedy Transition * The System Is to Blame * Implementing the Elite Wisdom Being Poor, Being Black: 19501980 * Poverty * Employment * Wages and Occupations * Education * Crime * The Family * The View from 1966 Interpreting The Data * The Scoial Scientists and the Great Experiment * Incentives to Fail I: Maximizing Short-Term Gains * The Destruction of Status Rewards Rethinking Social Policy * What do we want to Accomplish? * The Constraints on Helping * Choosing a Future

1,798 citations


"For the Poor, but Not Only the Poor..." refers background in this paper

  • ...Murray (1984), Mead (1986), and others launched strong critiques of this final safety net provision as it was then in place....

    [...]

Journal ArticleDOI
TL;DR: In this article, the authors compare the effects of different institutional types of welfare states on poverty and inequality and find that the more we target benefits at the poor and the more concerned we are with creating equality via equal public transfers to all, the less likely we are to reduce poverty and inequalities.
Abstract: the structure of welfare state institutions. (2) A trade-off exists between the degree of low-income targeting and the size of redistributive budgets. (3) Outcomes of market-based distribution are often more unequal than those of earnings-related social insurance programs. We argue that social insurance institutions are of central importance for redistributive outcomes. Using new data, our comparative analyses of the effects of different institutional types of welfare states on poverty and inequality indicate that institutional differences lead to unexpected outcomes and generate the paradox of redistribution: The more we target benefits at the poor and the more concerned we are with creating equality via equal public transfers to all, the less likely we are to reduce poverty and inequality. Social scientists and social reformers have long debated how the welfare state and social policies should be designed so as to best reduce poverty and inequality. This debate involves two different issues. One question concerns whether social policies should be targeted or universal, that is, should they be organized for the poor only or should the welfare state include all citizens? In the context of nontargeted programs, another question concerns the level of benefits: Should benefits be equal for all, or should they be related to previous earnings and in

1,749 citations

Journal ArticleDOI

1,005 citations


"For the Poor, but Not Only the Poor..." refers methods in this paper

  • ...This is calculated in a similar way as the Gini index (see, e.g., Kakwani 1977; Lambert 2001; OECD 2008)....

    [...]

  • ...Following Kakwani (1977), we apply a factor decomposition analysis of the concentration coefficient of total transfers (CC): it can be decomposed as the sum of the concentration coefficients (Ci) of the different transfer categories i weighted by their share si in total transfers s:...

    [...]

  • ...Following Kakwani (1977), we apply a factor decomposition analysis of the concentration coefficient of total transfers (CC): it can be decomposed as the sum of the concentration coefficients (Ci) of the different transfer categories i weighted by their share si in total transfers s: ∑= = CC s s C…...

    [...]

Book
01 Jan 1989
TL;DR: The 1970s and 1980s brought renewed interest, both theoretic and empirical, in matters of income distribution and redistribution, and as mentioned in this paper evaluated trends in income distribution through time, and differences between countries.
Abstract: The 1970s and 1980s brought renewed interest, both theoretic and empirical, in matters of income distribution and redistribution. How may we evaluate trends in income distribution through time, and differences between countries? Is the income tax ‘a good thing’? What constitutes an improvement in an income tax?

952 citations


"For the Poor, but Not Only the Poor..." refers methods in this paper

  • ...This is calculated in a similar way as the Gini index (see, e.g., Kakwani 1977; Lambert 2001; OECD 2008)....

    [...]

Journal ArticleDOI
TL;DR: The authors examined European public perceptions of the relative deservingness of four needy groups (elderly people, sick and disabled people, unemployed people, and immigrants) using data from the 1999/2000 European Values Study survey.
Abstract: Summary Welfare states treat different groups of needy people differently. Such differential rationing may reflect various considerations of policymakers, who act in economic, political and cultural contexts. This article aims at contributing to a theoretical and empirical understanding of the popular cultural context of welfare rationing. It examines European public perceptions of the relative deservingness of four needy groups (elderly people, sick and disabled people, unemployed people, and immigrants). Hypotheses, deduced from a literature review, are tested against data from the 1999/2000 European Values Study survey. It is found that Europeans share a common and fundamental deservingness culture: across countries and social categories there is a consistent pattern that elderly people are seen as most deserving, closely followed by sick and disabled people; unemployed people are seen as less deserving still, and immigrants as least deserving of all. Conditionality is greater in poorer countries, in countries with lower unemployment, and in countries where people have less trust in fellow citizens and in state institutions. At the national level there is no relation with welfare regime type or welfare spending. Individual differences in conditionality are determined by several socio-demographic and attitudinal characteristics, as well as by certain features of the country people live in.

836 citations


"For the Poor, but Not Only the Poor..." refers background in this paper

  • ...Perceptions regarding whether benefits end up with the “right” people and whether they stimulate or undermine self-reliance also matter (Van Oorschot 2006) It is in this respect noteworthy that major changes have happened to meanstested benefits over recent decades....

    [...]