2012

Poverty and Causality

Reprint No. 2012:30

Author(s): Tino SanandajiYear: 2012 Title: Critical Review: A Journal of Politics and Society Volume (No.): 24 (1) Pages: 51–59
Online article (restrictions may apply)


David Brady argues that low European poverty rates are a result of the welfare state. His finding relies on a relative measure of poverty, according to which the threshold for being poor differs across countries. Using the American poverty threshold as a fixed measure, though, Western Europe has a poverty rate of 18 percent, higher than that of the United States. Moreover, Brady’s thesis that welfare-state spending explains cross-country differences in inequality does not take account of the problem of reverse causality. Historically, welfare states developed in homogeneous nations that started out with higher levels of social capital and lower inequality. Scandinavia, for example, had unusually low poverty rates a century ago, and even today Americans with Scandinavian ancestry exhibit a poverty rate no higher than that in Scandinavia. Since poverty, social capital, population homogeneity, and the size of the welfare state relate in multiple ways to each other, we cannot rely on cross-country correlations to isolate the causal effect of the welfare state on poverty rates.


Reference:
Sanandaji, Tino (2012), "Poverty and Causality". Critical Review: A Journal of Politics and Society 24(1), 51–59.

Integrating Immigrants into the Nordic Labour Markets

An Overall Perspective

Pages-from-2019-Calmfors-Gassen---Integrating-Immigrants-into-the-Nordic-Labour-Markets.gif

Denmark, Finland, Norway and Sweden face similar problems of integrating large groups of immigrants, especially low-educated ones from outside the EU, into their labour markets. In this volume, edited by Lars Calmfors, IFN, and Nora Sánchez Gassen in cooperation with researchers from across the Nordic Region analyse how labour market integration of immigrants can be promoted. 

About the book

Events

Seminars organized by IFN

 

To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

Academically oriented seminars are most of the time held on Wednesdays at 10 am. At these events researchers from IFN and other institutions present their research.

In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

Research Institute of Industrial Economics, Grevgatan 34 - 2 fl, Box 55665, SE-102 15 Stockholm, Sweden | Phone: +46-(0)8-665 45 00 | info@ifn.se