A Multilevel Analysis of Factors Related to Poverty in Welfare States

Abstract

This study aims to investigate factors contributing to poverty, one of the most significant social problems in Western societies. To this end, 13 countries that have made a variety of efforts to reduce poverty, and therefore experienced similar development processes related to welfare, were selected. To overcome the methodological limitations of previous studies, the study utilized a Hierarchical Generalized Linear Model to simultaneously analyze individual-level and state-level factors that might affect the poverty status of a household, employing household data from the fifth wave of Luxembourg Income Study and Comparative Welfare State data. By comparing the magnitude of individual- and state-level effects in the analysis process, the model can empirically illuminate which of the two levels is more responsible for households' destitution. Furthermore, by analyzing the level of and characteristics of poverty in each country, this study examines whether there are discrepancies in the level of poverty across types of welfare states and what factors contribute to these discrepancies.