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Effects of WFS on poverty PDF Print E-mail
Written by Angela Tan, Taiwan   
Friday, 30 September 2011 19:59

 

 

Effects of WFS on poverty

Empirical evidence suggests that taxes and transfers considerably reduce poverty in most countries, whose welfare states commonly constitute at least a fifth of GDP. Most "welfare states" have considerably lower poverty rates than they had before the implementation of welfare programs.

 

Country Absolute poverty rate (1960–1991)
(threshold set at 40% of U.S. median household income)
Relative poverty rate

(1970–1997)

  Pre-welfare Post-welfare Pre-welfare Post-welfare
Sweden 23.7 5.8 14.8 4.8
Norway 9.2 1.7 12.4 4.0
Netherlands 22.1 7.3 18.5 11.5
Finland 11.9 3.7 12.4 3.1
Denmark 26.4 5.9 17.4 4.8
Germany 15.2 4.3 9.7 5.1
Switzerland 12.5 3.8 10.9 9.1
Canada 22.5 6.5 17.1 11.9
France 36.1 9.8 21.8 6.1
Belgium 26.8 6.0 19.5 4.1
Australia 23.3 11.9 16.2 9.2
United Kingdom 16.8 8.7 16.4 8.2
United States 21.0 11.7 17.2 15.1
Italy 30.7 14.3 19.7 9.1
 

 

 

Last Updated on Thursday, 03 November 2011 17:53
 
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