Assessing the effectiveness of state policies in alleviating in-work poverty globally

The purpose of this systematic review was to examine the impact of state interventions on in-work poverty and to explore variations in its definition across studies. Following the PRISMA 2020 guidelines, this review analyzed existing literature on the effectiveness of state interventions in reducing in-work poverty. The search spanned 18 electronic databases, covering articles published from 2010 to 2023. Fourteen studies were selected, encompassing 46 units of analysis. The findings reveal a diverse range of outcomes, with state interventions exhibiting positive, negative, and bidirectional impacts on in-work poverty. Tax credits emerged as particularly effective, especially the United Kingdom (UK) Working Tax Credit (WTC) and Child Tax Credit (CTC), though their effectiveness varied by family structure. Other interventions, such as social insurance programs, also showed promise, while some interventions, including unemployment benefits and certain conditional cash transfers, were associated with increased in-work poverty. This review also highlights significant definitional disparities in the literature on in-work poverty, due to differing conceptualizations and measurement methods. These findings underscore the complex interactions between policy measures and demographic factors in addressing in-work poverty. The implications for policymakers include the need for tailored, context-specific interventions and a holistic evaluation approach that considers both short-term outcomes and long-term socio-economic impacts.