Abstract:
Child poverty rose sharply in Britain and the US in the period preceding the Blair and Clinton governments, so that over a third of children were in poverty in both countries. Demographic change, falls in work and increasing wage inequality all contributed to this rise in Britain, with benefit changes having an offsetting effect. In the US, demographic and wages changes were the drivers. Both administrations acted with a range of welfare reforms aimed at increasing work incentives and, in Britain benefits for those not working were also raised. Child poverty fell under the Blair and Clinton governments; with work and benefit changes explaining most of the fall in Britain and work and demographic change the US fall. Copyright 2003 Royal Economic Society.