Change of norm? In-work poverty in a comparative perspective

"This study is taking an internationally comparative view on in-work poverty. Main focus is on so-called EU15 countries but long time span comparisons between selected OECD countries are made as well. Recent debate of in-work poverty in EU is clearly showing that traditional concepts like “wage...

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Bibliographic Details
Main Author: Airio, Ilpo
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Helsinki 2008
Kela
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Online Access:https://www.labourline.org/KENTIKA-19189483124919076659-Change-of-norm?-in-work-povert.htm
Description
Summary:"This study is taking an internationally comparative view on in-work poverty. Main focus is on so-called EU15 countries but long time span comparisons between selected OECD countries are made as well. Recent debate of in-work poverty in EU is clearly showing that traditional concepts like “wage-earner welfare state” and “male breadwinner model” are losing their importance. Study analyses in-work poverty from four different approaches: 1) How in-work poverty has developed in different OECD countries during the years 1970–2000? 2) How picture of poverty among the working households changes in EU countries by different poverty measures? 3) What are the factors behind working poor problem in EU countries? 4) What is the nature of in-work poverty dynamics in EU-countries? Data that is used is derived from the Luxembourg Income Study (LIS), Finnish Household Budget Surveys and from European Community Household Panel (ECHP). The results show that there are no common trends of in-work poverty. The theory of Europe sliding towards the Anglo-American working poor situation does not get support from results. Different poverty measures have a limited overlap and variation between in-work poverty rates is large in EU countries. Still, different poverty measures identify quite well same population groups as risk groups of in-work poverty. Differences are more depending on country-specific features than a product of different measures. Over a half of poor households have not suffered from labour market problems. Just labour market problems are the reason behind in-work poverty in about 8 percent of all working poor households. Although, working poor is yet a temporary problem. Two thirds of the working poor households have experienced poverty only once. The current working poor problem in EU countries is in some extent result of the fact that one wage is not always enough to secure household’s economic wellbeing. Two-earner model has become a new norm of working, which is reflected on living costs and level of wages. In the era of insecure labour markets and increasing single adult and single parent households this model could turn out to be harmful."
Physical Description:134 p.
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