Pre-crisis Conditions and Government Policy Responses: Chile and Mexico during the Great Recession

Pre-crisis Conditions and Government Policy Responses: Chile and Mexico during the Great Recession

AUTHOR(S)
Bruno Martorano

Published: 2014 Innocenti Working Papers
Chile and Mexico reacted to the crisis by implementing several policy responses, they achieved different outcomes. In particular, the Chilean economy recovered faster than the Mexican one. However, the main differences are related to social outcomes. On one hand, the Gini coefficient decreased in both countries. On the other hand, both overall and child poverty dropped in Chile while they rose sharply in Mexico. , Chile introduced a stimulus package twice as large the Mexican one. When the financial crisis arrived in late 2008 - Chile and Mexico started from different positions, they generated a different public effort, which in turn led to different economic and social results.
Changes in Child Poverty in the OECD/EU during the Great Recession: An initial view

Changes in Child Poverty in the OECD/EU during the Great Recession: An initial view

AUTHOR(S)
Sudhanshu Handa; Luisa Natali; Yekaterina Chzhen; Bruno Martorano

Published: 2014 Innocenti Working Papers
Though not a measure of direct child well-being, the strong association between child development and household income makes income poverty a useful indicator of the trajectory of child well-being both in the short- and medium-term. During the period 2008-2012 child poverty rates increased in 23 of the 41 OECD countries for which we have comparable data; in total, approximately 6.6 million children became poor and 4 million left poverty for a net increase of 2.6 million. Five countries at the bottom of our Child Poverty League Table had child poverty increases that were over 10pp. However, due to their relative size and despite only modest increases in child poverty rates, Mexico and the United States are home to over half of the newly poor children during this period with 2 and 1.7 million respectively.
Child Poverty and the Great Recession in the United States

Child Poverty and the Great Recession in the United States

AUTHOR(S)
Marianne Bitler; Hilary Hoynes; Elira Kuka

Published: 2014 Innocenti Working Papers
In the midst of the Great Recession, median real household income fell from $61,597 in 2007 to $57,025 in 2010 and $51,007 in 2012. Given that the effects of the Great Recession on unemployment were greater for less skilled workers the authors expect the effects of the Great Recession on household incomes to be larger in relative terms for individuals in the lower end of the income distribution. To explore this issue, in this paper, they comprehensively examine the effects of the Great Recession on child poverty.
Trends in Child Well-being in EU Countries during the Great Recession: A cross-country comparative perspective

Trends in Child Well-being in EU Countries during the Great Recession: A cross-country comparative perspective

AUTHOR(S)
Luisa Natali; Bruno Martorano; Sudhanshu Handa; Goran Holmqvist; Yekaterina Chzhen

Published: 2014 Innocenti Working Papers
This paper reports on how children have fared during the period of the global economic crisis (Great Recession) in rich European countries. The authors provide a descriptive overview of the evolution in a series of child well-being indicators over time (2007/8-2012/3 ) in 32 countries (the EU-28 plus Iceland, Norway, Switzerland and Turkey). The focus is on key child and adolescent outcome indicators that are expected to have been affected by the crisis and its related real-economy effects in the short and medium-term, including child monetary poverty and material deprivation, subjective well-being, and transition to adulthood (including education and employment). Countries’ performances are compared and ranked according to the change they experienced in these indicators over the period under analysis.
The Repercussions of the Economic Recession in Greece on Adolescents and their Families

The Repercussions of the Economic Recession in Greece on Adolescents and their Families

AUTHOR(S)
Anna Kokkevi; Myrto Stavrou; Eleftheria Kanavou; Anastasios Fotiou

Published: 2014 Innocenti Working Papers
The impact of the economic crisis is reflected in the increase of parental unemployment, tensions and fights within the family, constraints on going on holidays, and in fewer private lessons. Student’s life satisfaction has fallen. Findings enhance our understanding of the impact of the economic crisis on adolescents and families in Greece. These data may aid the shaping of policies to protect families and their offspring from the repercussions of the current crisis.
Subjective Impact of the Economic Crisis on Households with Children in 17 European Countries

Subjective Impact of the Economic Crisis on Households with Children in 17 European Countries

AUTHOR(S)
Yekaterina Chzhen

Published: 2014 Innocenti Working Papers
This paper investigates differences in the perceived impact of the economic crisis between adults in households with and without children in 17 European countries, using data from the Life in Transition Survey 2010. It also explores the channels through which the crisis affected adults in households with children and the ways in which they coped with the decline in income or economic activity. Overall, adults in households with children were more likely to report an impact of the crisis, with larger differences in countries with higher rates of monetary child poverty. There is evidence that adults in households with children prioritised expenditure on basic necessities, while cutting back on luxuries and holidays, but many still reported reduced consumption of staple foods as a result of economic difficulties.
Child Poverty and Material Deprivation in the European Union during the Great Recession

Child Poverty and Material Deprivation in the European Union during the Great Recession

AUTHOR(S)
Yekaterina Chzhen

Published: 2014 Innocenti Working Papers
The 2008 financial crisis triggered the first contraction of the world economy in the post-war era. This paper investigates the effect of the economic crisis on child poverty and material deprivation across the EU-28 plus Iceland, Norway and Switzerland. First, it examines if children were affected by the crisis to a greater extent than the population as a whole. Second, it analyses inequities among households with children and the degree to which those in workless households, migrant households, lone parent families and large families were at a greater risk of poverty and deprivation. Finally, it studies the extent to which social safety nets may have softened the negative impact of the economic crisis.
The Consequences of the Recent Economic Crisis and Government Reactions for Children

The Consequences of the Recent Economic Crisis and Government Reactions for Children

AUTHOR(S)
Bruno Martorano

Published: 2014 Innocenti Working Papers
The aim of this paper is to analyse the impact of the different policy reactions of European governments to the recent economic crisis on income distribution and poverty, giving special attention to children. Almost all the governments introduced fiscal stimulus packages in the first phase of the crisis. Nonetheless, the persistence of bad economic conditions led to a drop in the countries’ revenues with a deterioration of their fiscal conditions. In addition, the pressure coming from the financial markets and the resurgence of an orthodox policy approach pushed many governments to introduce austerity measures since 2010. In particular, there was a growing consensus about the necessity of fiscal consolidation despite awareness of the possible negative impact on economic performance and social outcomes. Some governments preferred to increase taxes while others preferred to reduce public expenditure, also cutting benefits and services for children and their families.
Cite this publication | No. of pages: 24 | Thematic area: Child Poverty, Social Policies | Tags: crisis, europe, income, inequality, poverty
Lost (in) Dimensions: Consolidating progress in multidimensional poverty research

Lost (in) Dimensions: Consolidating progress in multidimensional poverty research

AUTHOR(S)
Chris De Neubourg; Marlous de Milliano; Ilze Plavgo

Published: 2014 Innocenti Working Papers
Identifying, locating and profiling the poor and deprived individuals in a society are the most basic imperatives for good social policy design. Understanding why people are, and remain, poor is the next analytical step. Multidimensional poverty and deprivation estimates are important new tools in this undertaking. This paper reviews the insights of various contributions from research into multidimensional poverty and deprivation and combines them into an internally consistent framework. The framework adds an important element by emphasising that people may experience various types and forms of poverty and deprivation simultaneously. The experience of poverty is often multifaceted and deprivations are interrelated in many cases. This highlights the necessity to clearly separate the different concepts of poverty and to study their overlap.
Is it possible to adjust ‘with a human face’? Differences in fiscal consolidation strategies between Hungary and Iceland

Is it possible to adjust ‘with a human face’? Differences in fiscal consolidation strategies between Hungary and Iceland

AUTHOR(S)
Bruno Martorano

Published: 2014 Innocenti Working Papers
Before the recent economic crisis, Hungary and Iceland were considered to be two excellent models of development. Hungary and Iceland were among the countries affected earliest and most by the recent macroeconomic shock, suffering a similar drop in GDP.While the Hungarian government implemented a flat tax reform in order to stimulate economic activity, the Icelandic government replaced its flat tax system with a progressive one increasing the participation of high income groups in the adjustment process. The aim of this paper is to compare the opposite adjustment paths followed by Hungary and Iceland on selected outcomes.
Children, ICT and Development: Capturing the potential, meeting the challenges

Children, ICT and Development: Capturing the potential, meeting the challenges

AUTHOR(S)
Patrizia Faustini; Dorothea Kleine; Sammia Poveda; David Hollow

Published: 2014 Innocenti Insights
ICTs are not a technical sphere detached from the complex realities of children’s lives. They are increasingly woven into the very fabric of life, in income-rich and increasingly in income-poor countries. It is clear that if there is no targeted engagement with these socio-technical innovations, they are likely to reinforce existing inequalities. It follows that a focus on children and on greater equity leads to an active and reflective engagement with the potential and challenges of ICT for development, targeting in particular marginalized children. This report serves as a key contribution on which to build informed dialogue and decision making, developed jointly between research, policy and practice.
Multiple Overlapping Deprivation Analysis for the European Union (EU-MODA): Technical Note

Multiple Overlapping Deprivation Analysis for the European Union (EU-MODA): Technical Note

AUTHOR(S)
Yekaterina Chzhen; Chris De Neubourg

Published: 2014 Innocenti Working Papers
The Multiple Overlapping Deprivation Analysis for the European Union (EU-MODA) compares the material well-being of children across the EU member states, using data from the child material deprivation module of the European Union Statistics on Income and Living Conditions (EU-SILC) 2009. Embedded in the multidimensional poverty measurement literature, EU-MODA applies internationally accepted standards for the construction of indicators and dimensions of child well-being. The analysis ranges from indicator and dimension headcounts, overlaps between several dimensions, decomposition of the adjusted multidimensional deprivation headcounts, to overlaps between monetary poverty and multidimensional deprivation. This technical note describes the EU-MODA methodology in detail.
Cite this publication | No. of pages: 30 | Thematic area: Child Poverty, Social Policies
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