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United States Poverty in a Cross-National Context

Author

Listed:
  • Timothy Smeeding
  • Gary Burtless
  • Lee Rainwater
Abstract
In this paper we use cross-national comparisons made possible by the LIS to examine Americas experience in maintaining a low poverty rate. We compare the effectiveness of United States antipoverty policies to that of similar polices elsewhere in the industrialized world. If lessons can be learned from cross-national comparisons, there is much that can be learned about antipoverty policy by American voters and policymakers. The United States has one of the highest poverty rates of all the countries participating in the LIS, whether poverty is measured using an absolute or a relative standard for determining who is poor. Although the high rate of relative poverty in the United States is no surprise, given the countrys well-known tolerance of wide economic disparities, the lofty rate of absolute poverty is much more troubling. After Luxembourg, the United States has the highest average income in the industrialized world. Our analysis of absolute poverty rates provides poverty estimates for 11 industrialized countries. The paper is organized as follows. We begin by reviewing international concepts and measures of poverty as they relate to the main measures of income and poverty used in other chapters of this book. Next we present cross-national estimates of both absolute and relative poverty, concentrating on the latter measures. After examining the level and trend in these rates, we explore some of the factors that are correlated with national poverty rates and examine the antipoverty effectiveness of government programs aimed at reducing poverty. We conclude with a discussion of the policy differences and outcome differences we find, and we consider the implications of our analysis for antipoverty policy in the United States.

Suggested Citation

  • Timothy Smeeding & Gary Burtless & Lee Rainwater, 2000. "United States Poverty in a Cross-National Context," LIS Working papers 244, LIS Cross-National Data Center in Luxembourg.
  • Handle: RePEc:lis:liswps:244
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    File URL: http://www.lisdatacenter.org/wps/liswps/244.pdf
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    References listed on IDEAS

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    8. Hwanjoon Kim, 2000. "Anti-Poverty Effectiveness of Taxes and Income Transfers in Welfare States," LIS Working papers 228, LIS Cross-National Data Center in Luxembourg.
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    10. Richard B. Freeman & Robert Topel & Birgitta Swedenborg, 1997. "Introduction to "The Welfare State in Transition: Reforming the Swedish Model"," NBER Chapters, in: The Welfare State in Transition: Reforming the Swedish Model, pages 1-32, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Koen Caminada & Kees Goudswaard, 2009. "Effectiveness of Poverty Reduction in the EU: A Descriptive Analysis," Poverty & Public Policy, John Wiley & Sons, vol. 1(2), pages 1-49, July.
    2. Bönke Timm & Schröder Carsten, 2011. "Poverty in Germany – Statistical Inference and Decomposition," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 231(2), pages 178-209, April.
    3. Timothy M. Smeeding & Katherin Ross Phillips, 2002. "Cross-National Differences in Employment and Economic Sufficiency," The ANNALS of the American Academy of Political and Social Science, , vol. 580(1), pages 103-133, March.
    4. Kyo-seong Kim & Yongwoo Lee & Yu-jeong Lee, 2010. "A Multilevel Analysis of Factors Related to Poverty in Welfare States," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 99(3), pages 391-404, December.
    5. Notten, Geranda & Neubourg, Chris de, 2007. "Relative or absolute poverty in the US and EU? The battle of the rates," MPRA Paper 5313, University Library of Munich, Germany, revised 15 May 2007.

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