abstract: 'Scholars and policymakers who call for social investment (SI) policies hope that SI policies reduce income inequality and poverty, among other policy goals. Meanwhile, some others point out potentially less pro-poor effects of SI policies. There are relatively few cross-national studies that empirically examine the distributional effects of SI policies. The current study seeks to fill the gap by investigating the effects of SI policies on income inequality in OECD countries. The empirical analysis finds mixed results. Parental leave benefits reduce market income inequality, but other family support policies do not lessen inequality, and family allowances and paid leave (the length of generous leave) even increase it. The effects of some family policies are partly context-specific. In contexts where there are a large number of single-mother households, parental leave benefits reduce market income inequality. There is no stable evidence that education and active labour market policy (ALMP) reduce market income inequality. Education and ALMP, however, reduce disposable income inequality (even after controlling for left governments and Nordic countries). The article suggests that in countries with high education and/or ALMP spending, the skills of workers towards the lower end of the income distribution may be relatively high (even though their pre-tax and transfer income may be low), and it may make their income salvageable with redistributive policies. In this sense, SI policies and conventional redistributive policies may be complementary in reducing disposable income inequality.' affiliation: 'Sakamoto, T (Corresponding Author), Meiji Gakuin Univ, Fac Int Studies, Totsuka Ku, 1518 Kamikuratacho, Yokohama, Kanagawa 1088636, Japan. Sakamoto, Takayuki, Meiji Gakuin Univ, Yokohama, Kanagawa, Japan.' article-number: 09589287211018146 author: Sakamoto, Takayuki author-email: halosakamoto@gmail.com author_list: - family: Sakamoto given: Takayuki da: '2023-09-28' doi: 10.1177/09589287211018146 earlyaccessdate: JUL 2021 eissn: 1461-7269 files: [] issn: 0958-9287 journal: JOURNAL OF EUROPEAN SOCIAL POLICY keywords: 'Active labour market policy; education; family support; income inequality; industrial democracies; social investment policy; welfare states' keywords-plus: '18 OECD COUNTRIES; FAMILY POLICIES; POVERTY; REDISTRIBUTION; EMPLOYMENT; GROWTH' language: English month: OCT number: '4' number-of-cited-references: '41' orcid-numbers: Sakamoto, Takayuki/0000-0002-6810-5322 pages: 440-456 papis_id: 379ff2121ed2a2247c87000f3976d8d5 ref: Sakamoto2021dosocial researcherid-numbers: Sakamoto, Takayuki/A-9159-2009 times-cited: '4' title: Do social investment policies reduce income inequality? An analysis of industrial countries type: article unique-id: WOS:000675798000001 usage-count-last-180-days: '2' usage-count-since-2013: '18' volume: '31' web-of-science-categories: Public Administration; Social Issues year: '2021'