Summary Oxford University PPE revision notes: Poverty and Social Policy
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Course
Social Policy
Institution
Oxford University (OX)
My Oxford University notes for the PPE FHS exam in Social Policy. Useful for PPE and Human Sciences. I achieved a first and multiple academic prizes. Includes descriptions of concepts and key examples/references.
Does the concept of social exclusion, OR the ‘capabilities approach’, add value to thinking about poverty
and how to combat it? (Answer on one of these topics.) // ‘The capabilities approach goes well beyond
poverty, while social exclusion narrows it too much.’ Discuss // ‘Social exclusion is no more nor less than
multiple deprivation.’ Discuss
Concepts, definitions and measures
Distinction between concepts, definitions and measures of poverty (Lister 2004)
Concepts: the meaning of poverty
Definitions: more precise ways of dividing (people in) poverty from (people in) non-poverty
Measures: operationalizing definitions to measure poverty
Measures are often narrower to fit measurement criteria (e.g. spatial and temporal replicability),
but this doesn’t imply users of that measure think that is what poverty is (measures are tools)
Example: social exclusion
o Concept: poverty is conceived of as a state of existence which has more to it than merely the
fact of a lack of resources
o Measures: whilst nevertheless being a state which is best measured or operationalised by
measuring income; there is a difference between the concept and the measures, or
operationalisations of a concept which are used to analyse it
Absolute poverty
Absolute and relative poverty concepts both hinge on a person’s resources in relation to needs – but differ
on which needs count (i.e. survival or resources relative to wider society).
Usually means subsistence only (surviving).
‘My primary poverty line represented the minimum sum on which physical efficiency could be maintained’
(Rowntree 1941)
Generally based on a material benchmark (but doesn’t have to be income).
Easy to measure.
Anchored (absolute) poverty line can mean a poverty line fixed at a point in time (e.g. 2010) rising with
prices only (not living standards).
Measuring poverty with income thresholds (note these issues apply to any income ‘threshold’ measure,
thus including relative poverty)
Issues:
o Poverty gap: using thresholds doesn’t capture how far below the poverty line people are
living
o Indirect tax: increases inequality
Indirect taxes consist of taxes paid on spending, such as VAT, duties on alcohol,
tobacco and fuel, as well as taxes incurred by businesses that are passed onto
customers through the prices of goods and services
The amount each household pays is determined by their expenditure rather than
their income
, I think the point here is that defining poverty with income thresholds doesn’t
capture the post-income burden of indirect tax (that arguably should be
incorporated)
o Social wage: Government spending (measured per household) on subsidised welfare
services, including the NHS, state education and social housing
The value of this 'social wage' is, therefore, substantial in relation to people's cash
incomes, especially in the poorest households
Distributional impact of spending changes: the social wage is ‘pro-poor’ in the UK
(benefits the poorest households)
In addition to differences in demographic composition, this is largely determined by
income distribution
Relative poverty
In relation to others in society.
‘Individuals, families and groups…can be said to be in poverty when they lack the resources to obtain the
types of diet, participate in the activities and have the living conditions which are customary, or at least
widely encouraged or approved, in societies to which they belong. Their resources are so seriously below
those commanded by the average family or individual that they are in effect excluded from ordinary living
patterns, customs and activities’ (Townsend 1979)
Relative poverty generally defined as 60% of median household income
EU definition
Comparative tool (country specific)
Capabilities approach
Resolution of absolute vs. relative?
Sen (1983) argues that there is no conflict between the absolutist core of poverty (related to capabilities
and standard of living) and relative aspects of poverty
Dispute between these schools of thought, Sen argues, is rooted in a lack of clarification on the
particular “space” (e.g. commodities, incomes or capabilities) in which the poverty concept is to be
based
The concept of ‘capabilities’ comprises both realised outcomes (i.e. functionings) and the
alternative outcomes that could have been achieved given different choices (Burchardt and Hick
2016)
Inclusion of potential outcomes reflects the argument that the important aspect of standard of
living for poverty analysis is the choices people are able to make (rather than the commodities
which facilitate those choices, or the choices people actually make)
Capabilities as ends, with commodities as means to achieve them.
Emerging from the argument that the appropriate “space” for analysing poverty is not what people have,
nor how they feel, but what they can do and be (i.e. their capabilities), the capabilities approach to poverty
breaks away from the dominant income-centric tradition of poverty analysis (Burchardt and Hick 2016).
Sen: we shouldn’t be measuring poverty in terms of outcomes
NOTE this is problematic in terms of operationalization
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