Does Social Policy Matter? Poverty Cycles in Oecd Countries

Abstract

Traditionally, poverty was linked to an individual's family phase. This article examines to what extent poverty cycles are still apparent in OECD countries. By combining data on social policy programs and data on income distribution, the authors compare trends between nations. The main question is, how successful have various sociopolitical solutions been in eliminating poverty? Here the focus is on family policy and pensions. Improvements in social policies have impacts on poverty cycles in all countries. In most countries poverty among the elderly has declined, and the young have replaced the old as the lowest income group. In many countries the poverty cycles have flattened out, and life phase is no longer as important as it used to be. Some differences between nations remain, however. High poverty rates among families continue to be an Anglo-American problem, and improvements in this area have been only marginal. Social policy provisions are important for explaining both cross-national variation in poverty and changes over time. The impact is clearest among pensioners. Family-related poverty is lowest in countries that have combined cash benefits with public child-care services that facilitate parents' participation in the labor market.