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Social expenditure and relative poverty rates in selected OECD countries, late 2000s

* The relative poverty rate is the share of individuals with income below half of household-size-adjusted median income. Poverty rates are based on income after taxes and transfers.

Note: Social expenditure is government expenditure on social programs, such as Social Security and Medicare in the United States. The equation for the trend line is y = -0.2559x + 0.1528 and the R² = 0.1266.

Source: Authors' analysis of Organisation for Economic Co-operation and Development Stat Extracts (data group labelled "late 2000s")

Updated July 10, 2012

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