Does social policy matter? Poverty cycles in OECD countries

Traditionally, poverty was linked to an individual's family phase. This art icle examines to what extent poverty cycles are still apparent in OECD coun tries. By combining data on social policy programs and data on income distr ibution, the authors compare trends between nations. The main question is, how successful have various sociopolitical solutions been in eliminating po verty? Here the focus is on family policy and pensions. Improvements in soc ial policies have impacts on poverty cycles in all countries. In most count ries poverty among the elderly has declined, and the young have replaced th e old as the lowest income group, In many countries the poverty cycles have flattened out, and life phase is no longer as important as it used to be. Some differences between nations remain, however. High poverty rates among families continue to be an Anglo-American problem, and improvements in this area have been only marginal. Social policy provisions are important for e xplaining both cross-national variation in poverty and changes over time. T he impact is dearest among pensioners. Family-related poverty is lowest in countries that have combined cash benefits with public child-care services that facilitate parents' participation in the labor market.