Linking population heterogeneity with poverty

Abstract

Purpose – This paper aims to examine how population heterogeneity contributes to poverty in 17 high-income Organization for Economic Cooperation and Development countries during 1980-2005. Design/methodology/approach – The operational strategy involves linking poverty with heterogeneity directly as well as indirectly through welfare state policies as a latent variable in a structural equation framework. Findings – Findings support the widely held poverty-reducing roles of welfare state policies. Ethno-racial and religious diversities are found to positively contribute to welfare state policies and, through them, lower poverty, whereas immigration assumes opposite roles. Research limitations/implications – Data limitations on population and especially ethno-racial and religious heterogeneity caution against definitiveness. Originality/value – The findings are useful in understanding the heterogeneity connection of welfare state policies and poverty.