In-work poverty in Western Europe. A longitudinal perspective

Abstract

ABSTRACT This study investigates levels and determinants of in-work poverty (IWP) in Western Europe using EU-SILC longitudinal data 2004–2019. We compared IWP risk and their dynamics across fourteen countries by examining individual labor market positions, household total labor supplies, and employment patterns. We further explored the social class gradient in exposure to IWP, as well as drivers and patterns of longitudinal accumulation of poverty. Relying on a single (standard) earner is often not enough to keep families out of poverty, confirming the importance of dual-earner household arrangements, even if they entail non-standard employment conditions for one partner. This holds particularly true for countries with high levels of IWP and for less privileged social and occupational groups across all contexts. Analyzing IWP inertia, we examined the interplay between genuine state dependence (GSD) and unobserved heterogeneity in the accumulation of economic disadvantage over time. Previous experiences with IWP can lead to future IWP for some, yet this causal effect appears rather small. Our findings have clear implications for the social stratification of risk and policies designed to combat poverty accumulation.