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LONGER-TERM TRENDS IN INCOME POVERTY IN THE OECD AREA

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EN
This article reviews trends in income poverty in 26 OECD countries, including the most recent trends up to the early 2000s. Despite rather modest changes in overall poverty indicators over the long run, the structure of poverty has shifted over the years in all OECD countries, leading to higher poverty risks among younger age groups and consistently very high poverty levels among single parents - especially if they are without employment. Demographic changes have influenced these poverty trends, but they do not fully account for cross-country differentials. In turn, direct taxes and public transfers play a significant role in reducing market-income poverty, with considerably higher reduction rates in some of the European OECD countries; country differences are especially pronounced in the case of households with children. The poverty alleviation effect of tax/transfers increased in almost all OECD countries during the 1980s and early 1990s but slightly declined over the second half of the 1990s. Notwithstanding the efforts and effects of tax/transfer policies, employment remains a key factor for escaping the risk of poverty, underlining the importance of employment-oriented social policies and labour market policies that help 'make work pay'.
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All agree that evaluation of poverty in all dimensions - not only income-related one - is the most proper way of measuring this extremely complex phenomenon. Therefore, there are taken steps to measure and examine many other dimensions of poverty. For example, the system of Laeken indicators of poverty and social exclusion in the EU countries serves this purpose. A reasonable way taken into account the multidimensional concept of poverty is aggregation (combining) various dimensions in one index. This article shows that an alternative to the use of single measures of poverty may be a measure constructed on the grounds of information relating to various aspects of poverty, of income, housing conditions, health and education
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