Falling short of the promise: poverty vulnerability in the United States and Britain, 1993-2003

Abstract

The welfare state promises to moderate the duration and concentration of poverty. The authors ask how well this promise has been fulfilled in the United States and Britain from 1993 to 2003. They examine two aspects of poverty vulnerability during this period of welfare reform: (1) its persistence and associated risk factors and (2) the efficacy of social transfers. After accounting for measurement error, sociodemographic characteristics, and the impact of redistributive programs, the authors find that poverty is often persistent and risk is concentrated, especially in the United States. Moreover, the British safety net appears to better protect those at risk.