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Economic Conditions of Female-headed Households in Taiwan in Comparison to
the United States and Sweden
Some reflections on the measurement of social quality
Ozawa, Lee and Wang
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Source of data
1) The wave 5 of Luxemburg Income Study (LIS)
2) The data was collected around the year of 2000
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Source of data
3) 3,544 female-headed households with children under the age of 18
4) U.S.: 2,817 Sweden: 406 Taiwan: 321
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Conceptual Framework
1) Poverty rates under different definitions of income
Private income Disposable income=private
income – taxes + public transfers + private transfers
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Poverty line: 50% of the median adjusted household income
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Conceptual Framework
2) Effects of public transfers & private transfers on poverty reduction
3) Income inequality Private income Disposable income
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Conceptual Framework
4) Factors related to poverty status in each country
5) The odds of female-headed households being in poverty among three countries
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Conceptual Framework
6) The effect of number of children on the odds of female-headed households being in poverty
7) Implications for the measurement of social quality
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Findings
1) Poverty rates under the definition of private income
U.S.: 50% Taiwan: 27% Sweden: 51%
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FindingsPoverty rates under the
definition of disposable income
U.S.: 41% Taiwan: 22% Sweden: 9.7%
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Findings
2) Effects of public transfers & private transfers on poverty reduction
U.S.: 25% decline in the poverty rate (mainly due to means-tested benefits)
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Findings Taiwan: 37% decline in the pove
rty rate (mainly due to private transfers)
Sweden:86% decline in the poverty rate (mainly due to social insurance programs)
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Findings
3) Income inequality (Gini) Private income U.S.: 0.491 Taiwan: 0.307 Sweden: 0.494
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FindingsDisposable income U.S.: 0.363 Taiwan: 0.280 Sweden: 0.160
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Findings
4) Factors related to poverty status in each country
U.S.: number of children under 18, age of youngest child, age, education, marital status, work status
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FindingsTaiwan: education, work
statusSweden: age of the youngest
child, marital status, work status
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Findings
5) The odds of female-headed households being in poverty among three countries
Compared to Taiwan, female-headed households in Sweden were less likely to be poor.
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FindingsCompared to Taiwan, female-he
aded households in the U.S. were more likely to be poor.
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Findings
6) The effect of the number of children on the odds of female-headed households being in poverty
In Taiwan, the number of children under 18 did not affect.
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FindingsIn Sweden, when the number
of children increased by one, the odds of female-headed household being in poverty decreased by 23%.
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FindingsIn the U.S., when the number
of children increased by one, the odds of female-headed household being in poverty increased by 41.6%.
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Discussions
1) Before receiving public & private transfers, female-headed households in Taiwan had the lowest poverty rate.
the role of market
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Discussions
2) After receiving public & private transfers, female-headed households in Sweden had the lowest poverty rate.
The role of state, especially social insurance programs
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Discussions
3) The different effects of public & private transfers on poverty reduction existed in three countries.
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DiscussionsU.S.: means-tested programs
Taiwan: family transfers
Sweden: social insurance programs
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Discussions
4) The level of poverty rate was related to the level of income inequality.
The country with the lower poverty rate had a more equal income distribution.
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Discussions
5) The impacts of life events & human capital on poverty status were different in each country.
U.S.: life events (marriage, raising children), human capital (education, work status)
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DiscussionsTaiwan: human capital
(education, work status)Sweden: life events
(marriage, raising children), human capital (work status)
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Discussions
6) Adding on more children resulted in a smaller odds of being in poverty in Sweden.
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DiscussionsSweden solved the problem
stemming from the existence of children by means of comprehensive systems of income transfers that favors households with children.
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Implications for the measurement of social quality
The conditional factor of socio-economic security:
Financial resources• Income sufficiency• Income security
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Implications for the measurement of social quality
Work • Employment security• Working conditions
Education• Security of education• Quality of education
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Implications for the measurement of social quality
1) Income sufficiency: income-to-needs ratio= household income / poverty
line Suitable for international
comparisons
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Implications for the measurement of social quality
2) Income security: poverty rates, income inequality
(ex.Gini): ---the level of economic homogeneity among households
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Implications for the measurement of social quality
3) The protection of income security:
Considering other components of the welfare mix, besides state
Taiwan: market, family
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Implications for the measurement of social quality
4) The protection of income security:
Considering different types of pubic transfers: means-tested or social insurance programs
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Implications for the measurement of social quality
5) Exploring the relationship among the domains:
work, education, financial resources
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Implications for the measurement of social quality
6) From a gender perspective, several factors affecting women’s income security need to be considered.
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Implications for the measurement of social quality
marital status, age of the youngest child, the number of children (variations among countries)
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