Location of Repository

Whither poverty in Great Britain and the United States? The determinants of changing poverty and whether work will work

By Richard Dickens and David T. Ellwood

Abstract

We provide a comparison of poverty levels in Britain and the US based on a set of common definitions. We then ask what factors û demographic, economic, or policy û account for the observed changes in poverty in the two nations and what role could policy play in reducing poverty? We find that the forces influencing poverty differ between nations and across absolute and relative poverty measures. Demographic and wage change is a dominant force in both nations. Government benefits reduced relative and absolute poverty considerably in Britain over this period but had little impact in the US. However, policy changes may have significantly increased work in the US, particularly among single parents, whereas in Britain they may have had the reverse effect. The UK government has committed itself to reducing child poverty by half over the next 10 years and to its abolition within 20 years. We conclude that any purely work-based strategy, which doesn''t tackle demographics and wage dispersion, may not have a dramatic effect on relative poverty

Topics: HD Industries. Land use. Labor, HV Social pathology. Social and public welfare. Criminology
Publisher: Centre for Economic Performance, London School of Economics and Political Science
Year: 2001
OAI identifier: oai:eprints.lse.ac.uk:20109
Provided by: LSE Research Online

Suggested articles

Preview

Citations

  1. (2000). Caught in a Trap? Wage Mobility doi
  2. (1994). Disability Insurance Rejection Rates and the Labour Supply of Older Workers’, doi
  3. (1991). Disability Transfers and the Work Decision of Older Men’, doi
  4. (1992). Disability Transfers, Self-reported Health, and the Labour Force Attachment of Older Men: Evidence from the Historical Record’, doi
  5. (2000). Does Inequality in Skills Explain Inequality in Earnings Across Countries', doi
  6. (2000). Early Labour Market Experience: Dead-end Jobs or Stepping-stones for Less-skilled Workers?’,
  7. (1999). Economic Inactivity’, doi
  8. (1999). Entering Work and the British Tax and Benefit System’, Institute for Fiscal Studies,
  9. (1977). Equivalence Scales for Children’, doi
  10. (1999). Evaluating In-Work Benefit Reform: The Working Families Tax Credit in the UK’,
  11. (1999). Family Credit and the Working Families Tax Credit’,
  12. (2000). Financial Incentives for Increasing Work and Income Among Low-Income Families’, doi
  13. (1998). Gender and Income Inequality in the UK 1968-1990: The Feminization of Earnings or of Poverty?’, doi
  14. (2000). How Effective is the British Government's Attempt to Reduce Child Poverty?’,
  15. (1992). Incentive Effects of the US Welfare System: A Review’,
  16. (1997). Interactions in Family Supply and their Implications for the Impact of the EITC’,
  17. (1996). Labour Supply Response to the Earned Income Tax Credit’, doi
  18. (1999). Low Pay in Britain’,
  19. (1986). Macroeconomics, Income Distribution, and Poverty’, doi
  20. (2000). Making Single Mothers Work: Recent Tax and Welfare Policy and its Effects’, doi
  21. (1995). Measuring Poverty: A New Approach, National Academy Press:
  22. (1996). New Inequalities: The Changing Distribution of Income and Wealth doi
  23. (2000). of the Census doi
  24. (1993). Poverty, Income Distribution, and Growth: Are They Still Connected?’, doi
  25. (1999). The Earned Income Tax Credit and the Labour Supply of Married Couples’, doi
  26. (1986). The Econometrics of Piecewise-Linear Budget Constraints: A Survey and Exposition of the Maximum Likelihood Method’, doi
  27. The Employment Experiences and Potential Earnings of Welfare Recipients’, doi
  28. (2000). The Impact of the Earned Income Tax Credit and Social Policy Reforms On Work,
  29. (2000). The Labour Market Impact of the Working Families' doi
  30. (1997). The Labour Supply, Unemployment and Participation of Lone Mothers in In-Work Transfer Programs’, doi
  31. (1986). Unemployment and the Size Distribution of Income’, doi
  32. (1999). Wage Inequality in the 70s, 80s and 90s’,
  33. (1999). Welfare, the Earned Income Tax Credit, and the Labour Supply of Single Mothers’, doi
  34. (2000). Work Incentives and In-Work Benefit Reforms: A Review’, doi

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.