Fighting Poverty in the US and Europe : A World of Difference: A World of Difference

In this this timely study of the different approaches of America and Europe to the problems of domestic inequality and poverty, the authors describe just how different the two continents are in the level of State engagement in the redistribution of income. They discuss various possible economic and sociological explanations for the difference, including different attitudes to the poor, notions of social responsibility, and attitudes to race. - ;As events highlight deep divisions in attitudes between America and Europe, this is a very timely study of different approaches to the problems of domestic inequality and poverty. Based on careful and systematic analysis of national data, the authors describe just how much the two continents differ in their level of State engagement in the redistribution of income. Discussing various possible economic explanations for the difference, they cover different levels of pre-tax income, openness, and social mobility; they survey politico-historical differences such as the varying physical size of nations, their electoral and legal systems, and the character of their political parties, as well as their experiences of war; and they examine sociological explanations, which include different attitudes to the poor and notions of social responsibility. Most importantly, they address attitudes to race, calculating that attitudes to race explain half the observed difference in levels of public redistribution of income. - ;... remarkable book ... Mr Alesina and Mr Glaeser, both Harvard economists, are doing what the best in their profession do well these days: seeking to explain society not merely with conventional economic tools but with analysis of institutions, geography and social behaviour. - The Economist;In what ways, and why, are the United States and Europe so far apart in social policy? Alesina and Glaeser give us as definitive an answer to this fundamental question as we shall ever see. - George A. Akerlof, Nobel Prize Laureate