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AbstractMost social scientists, policy makers, and citizens who support the welfare state do so in part because they believe social-welfare programs help to reduce the incidence of poverty.Yet a growing number of critics assert that such programs in fact fail to do so, because too small a share of transfers actually reaches the poor, or because such programs create a welfare/poverty trap, or because they weaken the economy. This study assesses the effects of social-welfare policy extensiveness on poverty across 15 affluent industrialized nations over the period 1960-91, using both absolute and relative measures of poverty. The results strongly support the conventional view that social-welfare programs reduce poverty.
Do Social-Welfare Policies Reduce Poverty? A Cross-National AssessmentA central aim of social-welfare policies is to reduce poverty. Every major industrialized nation has a set of programs that transfer between 10% and 30% of the country's gross domestic product (GDP) among the populace, a key goal of which is to improve the wellbeing of those at or near the bottom of the income distribution. Do these programs work?This issue has been subject to increasingly heated debate. A number of analysts contend that social-welfare policies do indeed help to alleviate poverty. But the past two