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Holes in the Safety Net? Social Security and the Alleviation of Poverty in a Comparative Perspective

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  • Christina Behrendt

Abstract

Although highly-developed welfare states in the industrialized world spend a large share of their income on social security, poverty and social exclusion have not been eradicated. The persistence of income poverty in industrialized welfare states casts serious doubt on the effectiveness of social security schemes in alleviating poverty. This paper explores the poverty-alleviating power of social security in a comparative perspective on the basis of house-hold micro-data from the Luxembourg Income Study. Do higher levels of social spending necessarily lead to a lower level of poverty, or does the effectiveness of poverty alleviation rather depend on how the money is spent? Special emphasis is placed on minimum income schemes. Which institutional structures have proved to guarantee an effective alleviation of poverty, and which ones are rather ineffective in this respect? What can be learned for future reforms?

Suggested Citation

  • Christina Behrendt, 2000. "Holes in the Safety Net? Social Security and the Alleviation of Poverty in a Comparative Perspective," LIS Working papers 259, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:259
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    1. Timothy Smeeding & Gunther Schmaus & Brigitte Buhmann & Lee Rainwater, 1988. "Equivalence Scales, Well-Being, Inequality and Poverty: Sensitivity Estimates Across Ten Countries Using the LIS Database," LIS Working papers 17, LIS Cross-National Data Center in Luxembourg.
    2. McKinley L. Blackburn, 1998. "The Sensitivity Of International Poverty Comparisons," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(4), pages 449-472, December.
    3. Björn Gustafsson & Hannu Uusitalo, 1990. "THE WELFARE STATE AND POVERTY IN FINLAND AND SWEDEN FROM THE MID‐1960s TO THE MID‐1980s," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 36(3), pages 249-266, September.
    4. Esping-Andersen, Gosta, 1999. "Social Foundations of Postindustrial Economies," OUP Catalogue, Oxford University Press, number 9780198742005.
    5. Jantti, Markus & Danziger, Sheldon, 2000. "Income poverty in advanced countries," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 6, pages 309-378, Elsevier.
    6. repec:bla:revinw:v:36:y:1990:i:3:p:249-66 is not listed on IDEAS
    7. Katherin Ross Phillips & Timothy Smeeding, 1999. "Social Protection for the Poor in the Developed World: The Evidence from LIS," LIS Working papers 204, LIS Cross-National Data Center in Luxembourg.
    8. Brigitte Buhmann & Lee Rainwater & Guenther Schmaus & Timothy M. Smeeding, 1988. "Equivalence Scales, Well‐Being, Inequality, And Poverty: Sensitivity Estimates Across Ten Countries Using The Luxembourg Income Study (Lis) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-142, June.
    9. A. B. Atkinson, 1999. "The Economic Consequences of Rolling Back the Welfare State," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011719, April.
    10. repec:bla:revinw:v:34:y:1988:i:2:p:115-42 is not listed on IDEAS
    11. Hauser, Richard, 1987. "Comparing the influence of social security systems on the relative economic positions of selected groups in six major industrialized countries : The case of one-parent families," European Economic Review, Elsevier, vol. 31(1-2), pages 192-201.
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    Cited by:

    1. Mohamed Ben Mimoun & Asma Raies, 2022. "Is social spending pro‐poor in developing countries? The role of governance and political freedom," Poverty & Public Policy, John Wiley & Sons, vol. 14(3), pages 214-241, September.

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