Poverty Dynamics in Clusters of European Union Countries: Related Events and Main Determinants

Abstract

So far the dynamics of income poverty in European countries has been analysed in a comparative perspective using the ECHP dataset, the first EU-scale panel survey ran from 1994 to 2001 in the “old” 15 member states. By means of the EU-SILC longitudinal data, the main purpose of this paper is to up-to-date such kind of analysis up to 2007 and to extend it including also the “new” EU member states. Being the time span covered by EU-SILC too short for carrying out survival analysis on poverty duration and recurrence, in this paper we focus on income poverty mobility only, identifying and analysing which are the main determinants associated to households’ fall into or exit from poverty. Analyses are carried out grouping EU countries in the five usual geographical clusters. The results show that events related to the labour market are the most important in all clusters both because of their frequency and their relevant impact on poverty transitions Demographic events are, on the contrary, everywhere, much less relevant.