Year: 2024
Type: article
Study design: Observational Study
Abstract: Childhood poverty increases the likelihood of adult poverty. However, past research offers conflicting accounts of cross-national variation in the strength of—and mechanisms underpinning—the intergenerational persistence of poverty. Here the authors investigate differences in intergenerational poverty in the United States, Australia, Denmark, Germany and the United Kingdom using administrative- and survey-based panel datasets. Intergenerational poverty is decomposed into family background effects, mediation effects, tax and transfer insurance effects and a residual poverty penalty. The intergenerational persistence of poverty is 0.43 in the United States (95% confidence interval (CI) = 0.40–0.46; P < 0.001), compared with 0.16 in the United Kingdom (95% CI = 0.07–0.25; P < 0.001) and 0.08 in Denmark (95% CI = 0.08–0.08; P < 0.001). The US disadvantage is not channelled through family background, mediators, neighbourhood effects or racial or ethnic discrimination. Instead, the United States has comparatively weak tax and transfer insurance effects and a more severe residual poverty penalty. If the United States were to adopt the tax and transfer insurance effects of its peer countries, its intergenerational poverty persistence could decrease by more than one-third. Children born in poverty are more likely to experience poverty as adults, but this likelihood is greater in the United States than in Australia, Denmark, Germany or the United Kingdom. The authors examine what mediates the differences in intergenerational poverty between countries.
Source: Nature Human Behaviour
Institutions: Bocconi University, Stockholm University, Rockwool Foundation
Language: English
Subfield: Sociology and Political Science
Field: Social Sciences
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $12,290
OpenAlex ID: W4403839498