The American Myth of Markets in Social Policy Ideological Roots of I

The American Myth of Markets in Social Policy examines how implementing American tropes in policy design inadvertently frustrates policy goals. The book investigates multiple market-oriented designs including funding for private organizations to deliver p

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The American Myth of Markets in Social Policy Ideological Roots of Inequality Debra Hevenstone

THE AMERICAN MYTH OF MARKETS IN SOCIAL POLICY

Copyright © Debra Hevenstone, 2015. Softcover reprint of the hardcover 1st edition 2015 978-1-137-43629-0 All rights reserved. First published in 2015 by PALGRAVE MACMILLAN® in the United States—a division of St. Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Where this book is distributed in the UK, Europe and the rest of the world, this is by Palgrave Macmillan, a division of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978-1-349-57393-6

ISBN 978-1-137-43630-6 (eBook)

DOI 10.1057/9781137436306 Library of Congress Cataloging-in-Publication Data is available from the Library of Congress. A catalogue record of the book is available from the British Library. Design by Newgen Knowledge Works (P) Ltd., Chennai, India. First edition: September 2015 10 9 8 7 6 5 4 3 2 1

In memory of my grandfather, Chaim Granek, a lifelong inspiration. I wish he were here to see the completion of this book, as he was for its inception.

Contents

List of Illustrations

ix

Acknowledgments

xi

Introduction

1

Part I Theory

9

Chapter 1 Defining Social Goals: Pragmatism, Empiricism, and the Social Debate

11

Chapter 2 Social Policy Design: Market-Oriented Solutions, Rationality, and Federalism

49

Part II Policy

85

Chapter 3 Labor Markets: Wages, the Employer’s Role, and Family Policy

87

Chapter 4 Social Insurance: Health, Pensions, and Long-Term Care

119

Chapter 5 Targeted Programs: Housing, Homelessness, and Youth Training

175

Chapter 6 Social Pressure: Health Behaviors, Bullying, Prejudice, and Discrimination

209

Conclusion

235

Notes

245

Bibliography

255

Index

287

Illustrations

Figures 1.1 1.2 1.3 1.4 1.5 1.6 2.1 2.2 2.3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 5.1

The Lorenz curve and the Gini coefficient Change in Gini coefficient due to taxes and transfers Income distributions and relative vs. absolute poverty Distribution of perceived income decile Trade union density Support for unions, less general institutional support Combined in-kind benefits for a family in New York City Average income tax rates by gross income Effective state tax rates by gross income Federal minimum wage Gross income with a negative income tax vs. earned income tax credit Atypical employment in the OECD Unemployment insurance versus employment protection Total fertility rate by country Earned income vs. take-home pay after childcare, with CCDF subsidies Percentage agreeing a preschool child suffers if his or her mother works Public and mandatory social expenditures as a percent of GDP Social expenditures vs. expenditure sour