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Poverty reduction and social security: Cracks in a policy paradigm

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  • Bea Cantillon
  • Natascha Van Mechelen

Abstract

Poverty reduction rests on the mechanisms of horizontal and vertical solidarity and on prevention and repair of social risks. In this contribution, we argue that in contemporary welfare states the poverty-reducing capacity of existing social security systems perceive inherent limitations. Focusing on Belgium, we present and discuss empirical indications of a persistent (over a period of at least 30 years) decline in poverty reduction through social transfers, particularly among households who are highly dependent on such transfers. Firstly, we show that prevention and repair have failed to contribute to a reduction in the proportion of work-poor households who are highly dependent upon social security and face a high (rising even) poverty risk. Secondly, we find that that given the fragmentation of social risks - in terms of both ex-post poverty outcomes and ex-ante social stratification - horizontal redistributive mechanisms through risk pooling have become less obvious, especially in respect of unemployment. Thirdly, it appears that the mechanisms of vertical solidarity also face inherent limitations. In a final section we summarize some important research questions for the future and potentially worthwhile policy avenues to resolve the question of how social policymaking might succeed in the future where it has failed in the past.

Suggested Citation

  • Bea Cantillon & Natascha Van Mechelen, 2013. "Poverty reduction and social security: Cracks in a policy paradigm," Working Papers 1304, Herman Deleeck Centre for Social Policy, University of Antwerp.
    • Handle: RePEc:hdl:wpaper:1304
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    References listed on IDEAS

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    1. Bea Cantillon & Wim Van Lancker, 2011. "Solidarity and reciprocity in the social investment state: what can be learned from the case of Flemish school allowances and truancy?," Working Papers 1109, Herman Deleeck Centre for Social Policy, University of Antwerp.
    2. Joakim Palme & Walter Korpi, 1998. "The Paradox of Redistribution and Strategies of Equality: Welfare State Institutions, Inequality and Poverty in the Western Countries," LIS Working papers 174, LIS Cross-National Data Center in Luxembourg.
    3. Kenworthy, Lane, 2013. "Progress for the Poor," OUP Catalogue, Oxford University Press, number 9780199676927.
    4. Bea Cantillon, 2011. "The Paradox of the Social Investment State. Growth, Employment and Poverty in the Lisbon Era," Working Papers 1103, Herman Deleeck Centre for Social Policy, University of Antwerp.
    5. Marx, Ive & Salanauskaite, Lina & Verbist, Gerlinde, 2013. "The Paradox of Redistribution Revisited: And That It May Rest in Peace?," IZA Discussion Papers 7414, Institute of Labor Economics (IZA).
    6. Bea Cantillon & Natascha Van Mechelen & Olivier Pintelon & Aaron Van den Heede, 2012. "Household Work Intensity and the Adequacy of Social Protection in the EU," Working Papers 1204, Herman Deleeck Centre for Social Policy, University of Antwerp.
    7. Hemerijck, Anton, 2012. "Changing Welfare States," OUP Catalogue, Oxford University Press, number 9780199607600.
    8. Stijn Oosterlynck & Yuri Kazepov & Andreas Novy & Pieter Cools & Eduardo Barberis & Florian Wukovitsch & Tatiana Saruis & Bernhard Leubolt, 2013. "The butterfly and the elephant: local social innovation, the welfare state and new poverty dynamics," ImPRovE Working Papers 13/03, Herman Deleeck Centre for Social Policy, University of Antwerp.
    9. Ive Marx & Lina Salanauskaite & Gerlinde Verbist, 2013. "The paradox of redistribution revisited: and that it may rest in peace?," LIS Working papers 593, LIS Cross-National Data Center in Luxembourg.
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    Cited by:

    1. Thomas Leoni, 2016. "Social investment: A guiding principle for welfare state adjustment after the crisis?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 43(4), pages 831-858, November.
    2. Thomas Leoni, 2015. "Welfare State Adjustment to New Social Risks in the Post-crisis Scenario. A Review with Focus on the Social Investment Perspective. WWWforEurope Working Paper No. 89," WIFO Studies, WIFO, number 57899.

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