The immediate impact of the global financial crisis and neo-liberal austerity policies on in-work poverty dynamics in Lithuania

In Spain, 70% of children in poverty live in households with one or more workers; equally, households with children make up the majority of households in in-work poverty (53%) despite representing only 27% of all households. However, in-work poverty and child poverty are often thought of as separate problems. Most analyses on in-work poverty in Spain use data from a single year and focus on working individuals. However, since households share needs and resources, understanding the factors that increase the risk of poverty requires studying households. In this work, carried out at the Demographic Studies Centre at the Autonomous University of Barcelona, we adopt a dynamic perspective to analyse the interrelationship between child and in-work poverty, and specifically the high in-work poverty rates in households with children and adolescents. Using longitudinal data from the Living Conditions Survey (2017-2020), we examine the role played by childbirth/adoption, the presence of children in the household and their age in the processes of impoverishment. We find that in 2020 only 4% of households entering in-work poverty experienced an increase in the number of children and adolescents in the household. In contrast, 37% of entrants experienced a decrease in income without decreasing the number of workers (for example, due to a temporary period of unemployment), and 29% a reduction in unemployment benefit income. Households with children tend to have greater difficulties in escaping poverty, which translates into longer periods in in-work poverty. We conclude that changes in employment status are more relevant than changes in household composition for understanding child and working poverty. Additionally, the role of risk factors such as temporary employment is compounded in households with children, further reducing their poverty exit rates. Reducing child poverty requires tackling in-work poverty and vice versa

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.

This article examines the relationship between tax credits and in-work poverty, drawing on the findings from a major national study on in-work poverty. We present an analysis of (i) the income packages of working families and (ii) the performance of tax credits in relation to anti-poverty objectives, drawing on data from the Households Below Average Income survey between 2004/5 and 2014/15. Our study generates five novel findings, including that tax credits reduce the poverty gap of recipient households by two-thirds; that tax credit cuts post-2010/11 have served to focus payments on single parent families and households with greater numbers of children; and that tax credits make up just one third of the social security income of working households. We argue that understanding in greater depth the interaction between tax credits and income adequacy amongst working families is necessary to provide a firmer foundation for an effective assault on in-work poverty.

This article analyses the re-emergence of the working poor phenomenon in Western Europe. Critically engaging with comparative welfare regimes literature on in-work poverty (IWP), it argues that an international political economy (IPE) perspective is key to understanding the economic and international dimensions of IWP. By focusing on three countries belonging to different welfare regimes, namely Britain, Germany and Italy, the article examines the relationship between production restructuring, IWP trends and the nature of work, with particular attention to working-hour dynamics. It argues that the increasing IWP observed in these countries since the outbreak of the global economic crisis is linked to long-term trends in the IPE and to the growth of new competitors, mainly from emerging countries.

This paper intends to analyse the impact of global economic crisis on the economy of Kosovo with the focus on the impact of crisis on financial system of the country. For the purpose of analysing the global crisis impact on specific sectors of the economy of Kosovo, this paper begins by explain the roots of the global crisis, and the impact of the crisis in the region of Western Balkan by identifying and analysing fluctuations of major macroeconomic indicator of the economy, which is the GDP of Kosovo and Western Balkan countries for comparative analysis. In this regard the paper furthermore analyses the trends of macroeconomics indicators that reflect the development and macroeconomic balances of Kosovo economy in period of 2007- 2012, such as GDP, Trade Balance, CPI, Unemployment Rates, Remittances, and FDI. Furthermore, specifically analysis the reflection of global crisis in financial system by analysing the main developments of banking sector and pensions fond as major pillars of financial system .Additionally this paper by considering reports, academic journals, and different studies in view of economic development of Kosovo during the global economic crisis, presents applied fiscal policies of government during that period and the respond of financial system itself toward crisis. DOI: 10.5901/ajis.2016.v5n3p163

Introduction This essay begins with the premise that resilience, broadly defined as positive adaptation despite adversity (Garmezy and Rutter), and resilience building are important concepts and practices for social policy because they are concerned with the quality of people’s lives forged within conditions of marginalisation and disadvantage. Although it will focus on trends in contemporary neoliberal policies and practices, it builds on the tradition of scholarship that has provided critical alternative accounts to the encyclopaedic knowledge of the “pathologies” of the oppressed. Resilience research constitutes one such field of disruption in its turn to understanding how people endure, cope or indeed thrive despite adversity. Over forty years of research has explored a wide range of adversities, protective, buffering, restorative or promotive processes enabling people’s coping, recovery, wellbeing and capacity to lead dignified, meaningful, successful lives (O’Doherty Wright and Masten). Essentially, resilience research has sought to understand what makes a difference in the lives of children, young people and adults with a view to applying this knowledge through policy, professional intervention and practices within families, schools, other public systems and communities. Early research on resilience focused on individual traits to explain people’s wellbeing despite the effects of significant stressors or challenging circumstances. However, it is now widely accepted that resilience involves diverse processes embedded in ecological systems. How resilience manifests is shown to vary according to the kind of barriers, traumas and ongoing adversities people experience in their cultural, social and political contexts. At the individual level, personal agency and the capacity to act in and on the world are posited as important mechanisms of resilience (Edwards; Rutter). But these are always enabled in relationship with others and take on meaning in specific activity domains and cultural contexts. For example, for Indigenous peoples, language, culture, land and “caring for country” have been important resources for surviving and coping with the lasting effects of colonisation (Dockery; Weir, Stacey and Youngetob). Access to cultural and material resources, political activism for land rights and scope for self-determination are significant to individual and collective Indigenous resilience (Kirmayer et al.). Across diverse cultures and contexts, resilience is shown to be contingent on community capacities and resources (Ungar). For young people and families in poverty, these include “resilience-generating institutions” (Fine, Stoudt, Fox and Santos 32) such as schools and community centres and access to housing, transport, local infrastructure and opportunities that are, in turn, shaped by social and economic structures and systems of distribution (of adversity, opportunity and social goods) including the policies that facilitate them (Bottrell and Armstrong; France, Bottrell and Armstrong). Discrepancies between these understandings of resilience processes and policy orientations have been noted. Seccombe’s analysis of influences on the resilience of families in poverty concludes that “careful attention must be paid to the structural deficiencies in our society and to the social policies that families need in order to become stronger, more competent, and better functioning in adverse situations” (385). Similarly, O’Dougherty Wright and Masten argue that it is well established that there is the need for supportive “multifaceted, community-based intervention” to promote the resilience of children and families living with chronic adversity, yet progress in this direction has been slow and uneven (32). However, in resilience research there is little analysis of these discrepancies in terms of how resilience is framed in social policy and how its meaning has emerged as very different from the contextualised ecological systems approach. Resilience researchers have questioned the limits and costs of resilience in conditions of extreme adversity such as poverty and racial oppression, yet in the main, these critiques have received little attention. For example, Luthar (1993) and Liddle (1994) emphasised the importance of not losing sight of the human suffering that is often experienced in the process of developing resilience. More recently, Bottrell has emphasised the utility of resilience to neoliberal policy in asking the following questions: “[T]o what extent will adversity be tolerated, on the assumption that resilient individuals can and do cope? How much adversity should resilient individuals endure before social arrangements rather than individuals are targeted for intervention?” (Qualitative Social Work 335). This paper takes up these questions in arguing that the meaning of resilience in social policy is distorted by its neoliberal reworking for governance purposes. As economic, ideological and political systems, neoliberalism’s key tenets are that, human well-being can best be advanced by liberating individual entrepreneurial freedoms and skills within an institutional framework characterized by strong private property rights, free markets and free trade. The role of the state is to create and preserve an institutional framework appropriate to such practices. (Harvey 2) As economic policies and practices, neoliberalism distributes benefits and opportunities highly inequitably; as “ontoformative, it creates new social realities on a very wide front” (Connell 43). These dimensions of neoliberalisation are particularly evident in social policy and practice because this field has been and continues to be a focus for privatisation and activating new social relations to accomplish market rule. These shifts are infused with the tensions, contradictions, crises and ideological inconsistencies that are characteristic of neoliberalisation globally and in sovereign contexts (Brenner, Peck and Theodore). The ascendance of resilience as a social policy text articulates these shifts. In the following sections it is argued that key trends in neoliberal social policy point to the political, ideological and structural processes that produce the need for resilience. However, its production lies not only in policy that explicitly claims to focus on building resilient communities but through other neoliberal policy agenda. It is proposed, then, that resilience as a policy concept and related practice is better understood in its intertextuality, that is, as embedded in the interrelationship of policies and strategies directed toward the realisation of neoliberal ideals. The paper focuses on the articulation of resilience and responsibility as twinned texts of neoliberal governance. The Neoliberal Text of Resilience In Australia, the United States and other advanced capitalist democracies, the policy framing of resilience encapsulates the principle of individualisation that has been characteristic in the neoliberal realignment of social policy to economic aims. Resilience is typically represented in social policy as a matter of individual attributes that are integral to autonomy, self-invention and choice biographies (Bottrell and Armstrong). For example, in Australian youth policy, resilience is described as important for all young people, to “navigate life’s challenges” and particularly important for youth “at risk” (http://www.youth.gov.au/ayf/media/Pages/NationalStrategyforYoungAustralians.asp). In national educational goals, resilience as a “personal attribute” is linked to young people’s confidence and self-management essential for “fulfilling, productive and responsible lives” (http://www.acara.edu.au/curriculum/curriculum.html#). Similarly, US Health and Human Services policy links resilience to strategies promoting healthy behaviours and reducing risky behaviours (http://www.hhs.gov/secretary/about/priorities/priorities.html). The emphasis on individualised resilience is evident too in policy strategies for “community resilience”. Common approaches, for example in Australia, the US, and other liberal welfare states (Esping-Anderson), include parenting, pre-school and school programs focused on improving individual skills to diminish the impact of “risks”; while communitarian elements tend to focus on self-help initiatives as the means of individuals accessing skills and support to manage their lives. Although supported through interagency co-ordination and community work, there are often minimal program funds attached for long-term, participatory community development (Fawcett, Goodwin, Meagher and Phillips). The emphasis on individuals, their skills and attitudes and is an outmoded notion of resilience that decontextualises it from cultural contexts, social structures and political processes. As recognised in resilience research, whether a young person, parent or community endures, copes or thrives is dependent on the resources of the community that are accessible and culturally meaningful (Bottrell; Massey, Cameron, Ouelette and Fine; Ungar). According to Dorothy Smith, “texts” as the “foundational media” co-ordinating people, activities and institutional relations, reposition people as institutional subjects. The abstraction of people’s lived situations and their repositioning through generalised and ideological messages is an essential function of “texts”, as governing documents and the co-ordinated social relations and practices flowing from aims and strategies. We see these processes in the policy text of resilience as it articulates the neoliberal ideology of entrepreneurial individualism and repositions young people, families and communities in terms of the capacities relevant to this ideal. In this way, it takes them out of their everyday lives, actual concerns and the social organisation of ruling relations that give rise to them (Smith, Everyday World). Resilience then becomes a basis for

Las relaciones entre el riesgo de pobreza y el empleo se han convertido en un problema de creciente interés en los últimos años. El grueso de la investigación disponible sobre este problema es de tipo transversal. El análisis dinámico de la pobreza laboral es particularmente interesante para la respuesta de varias cuestiones: ¿es el empleo suficiente para evitar la pobreza? ¿Es la pobreza laboral una situación temporal o permanente? En este trabajo se analiza la dinámica de la pobreza de los trabajadores en España; con el objetivo de conocer si las caídas en la pobreza laboral se producen solo temporalmente, si las personas caen varias veces en esta situación o si, de lo contrario, la pobreza laboral se configura como un fenómeno que produce atrapamiento y del cual es muy difícil salir. A su vez se pretende analizar los distintos perfiles de pobreza laboral en función de su duración.

A global Crisis is an unanticipated, abrupt event that upsets an economy's equilibrium and presents severe difficulties for governments. Whether caused by pandemics, natural disasters, global financial crises, or geopolitical upheavals, these shocks necessitate prompt and efficient policy responses to lessen their impacts. The study models are designed to summarise time series data for thirty major economies, as well as potential trade partners, during the period from 2002 to 2022. The study will employ Trend and GMM statistical techniques to assess the effects of government expenditure responses on economic stabilisation actions across various Global Crises. This research examines the impact of the global crisis on government expenditure responses and the underlying causes that determine fiscal policy choices following these Crises. The study identifies several key elements that influence government spending decisions, including the global crisis, the political and economic climate, fiscal policy frameworks, and international interdependencies. Additionally, it examines the outcomes of various spending reactions and assesses their long-term effects on the economy. The results are statistically significant and favourable, consistent with earlier studies. At a 1% significance level, the impact of crises on the diversity factor shows a strong and significant positive influence on economic activity across all estimators. The study recommended that technological advancement can significantly support long-term economic recovery. The most effective global agreement, the 2015 United Nations Sustainable Development Goals, must establish goals to increase economic efficiency and mitigate global crises.

The corona crisis has an unequal impact on worker’s income. Workers with unstable jobs prior to the crisis, have been affected hardest due to the loss of work and income (Börner, 2020). An example is the group of workers who cannot make ends meet, despite having a job. In order to explore the impact of the coronavirus crisis on in-work poverty, it is relevant to get a better insight into how low income is defined because in the Netherlands low income and poverty are calculated in various ways. For this chapter we use two indicators (Statistics Netherlands, 2018; SCP, 2018). The first is the poverty threshold, indicating whether or not the income is sufficient to meet basic needs such as buying food, housing, and participating in social activities. The second is the low-income threshold, representing stable purchasing power over time.

The article’s primary purpose is to present an understanding of in-work poverty by defining the mentioned phenomenon uniformly in all European Union countries and by demonstrating its main determinants. First of all, it is necessary to present a complex definition of the term in-work poverty and refer it to the concept of precarious work functioning in both the legal circuit and the literature. The analysis starts by presenting the existing indicators and measurements of this phenomenon as a basis for conclusions on legal, economic, and social conditions of in-work poverty. The critical role in this regard is attributed to labour law and social security regulations and their continuous changes caused by adapting to new forms of organizations of work and to expectations coming from market competition. The broad range of analyses of phenomena in the work-poverty results from studies delivered under a project of the same name “Working Yet Poor.” The project aims to examine the regulatory structures affecting the working conditions and to assess different aspects of regulations that can have a direct and indirect impact on the occurrence of this phenomenon.

This study aims to investigate the impact of the global crisis on the financial performance of banks in Indonesia. The study will also look at the impact of the crisis on the welfare of stakeholders in the form of dividend payments to shareholders. The initial assumption that we have built for this condition and for the explanation in the previous paragraph is that there is a difference between the payment of dividends to shareholders before and after the period of the global crisis. Proof of this assumption is also at the same time can give an answer to the resilience of the Indonesian economy during the global crisis. By using all populations banking companies listed in Indonesia Stock Exchange, this study compared the financial performance of the company before and after the next global crisis with its impact on the payment of dividends. This study shows that there is a significant decline in its net profit after the global crisis. But there is not enough result to support second hypotheses about decrease of share prices as an excessive market sentiment surrounding global crises. It looks at the stock price actually rose after the global crisis. Other conditions have been found in this study is that there is an increase dividends given to shareholders after the crisis. These findings shows that the banking sector in Indonesia has a fairly strong resilience in the face of the global crisis in 2008. This condition may occur due to the success of fiscal regulation of Indonesia Bank to save Indonesian economy.

1. Introduction Over the past two decades reform need arose in the European welfare states, deriving from demographic factors, employment crises and public debt (Thalassinos et al. 2010). The evolution of security benefits since the 1990s reflects that in many EU countries the dismantling of the welfare state is already obvious. These tendencies are in part explained by the reforms of pension and healthcare systems, which account for 70-80 per cent of all welfare state expenditure. The global economic and financial crisis and the subsequent weaker growth are putting under pressure the European welfare states. Cuts in services, as well as tax and contribution increases are further entrenching the process of recommodification which has characterized the reform of European welfare states for years (Busch, 2010). Nonetheless, in the EU collective coverage of risks is comprehensive (3) and welfare spending accounts for 16-30% of GDP; this is why the repercussions of the global financial crisis mark a particularly serious stress test for the European welfare states. The unequal economic development and the catch-up processes (typical for the EU) determined also the dumping. While in countries like Greece, Hungary and Portugal the economic catch-up process has gone along with an expansion of the welfare state, in other states (Estonia, Ireland, Latvia, Lithuania, Slovakia and Spain) the welfare state has been retrenched, in spite of the economic progress. The new EU members from Central and Eastern Europe, with their stigmatization of socialism during the transformation from centrally planned economies to market economies, embraced the neo-liberalism typical for USA and Great Britain (4). As people sought to escape socialist paternalism and enforced entitlements such as unified corporate housing or corporate holidays, the general perception of the word social became increasingly negative (Vecernik, 1993). The global economic crisis had a dual effect for the security systems: (1) due to higher unemployment, the expenditures of insurance are increasing and (2) tax and contribution revenues are falling as a consequence of lower economic growth. Taking into consideration that most European states have used large rescue packages in response to the crisis and to bale out the financial sector, larger deficits have emerged in state budgets and in the budgets of insurance (Thalassinos and Politis 2011). Analyzing the state of the public budgets of EU countries in the wake of the global crisis, the European Commission (2009) indicated three measures: 1. the reduction of deficit and debt ratios; 2. an increase in employment rates and 3. security reforms, especially of pension and healthcare systems. These effects of the economic global crisis on the European welfare states were already investigated in a series of recent papers. For example, Diamond and Lodge (2013) present a comparative analysis of contemporary and future changes in welfare states and examine divergent trajectories of development across Europe in the aftermath of the crisis. They draw lessons from quantitative public opinion surveys in three key EU member states (France, Denmark and UK) to inform debate on the future shape of welfare states after the global crisis. Starting from the assumption that policy reactions to economic crises vary significantly across countries, Stake et al. (2012) make a comparative study on welfare state responses to three major economic crises (1970s oil shocks, 1990s recession, current financial crisis) in four OECD countries (Belgium, Netherlands, Sweden and Australia). Another interesting contribution is that of Hemerijck and Vandenbroucke (2012), who revisit policy as productive factor and link the euro crisis to the imperative of defining a Europe. …

In-work poverty (IWP) is gaining interest in the public agenda. This article is a first contribution to the analysis of IWP dynamics in Latin America, based on the study of the Argentine case. Using one-year interval panel data, the paper analyzes the trigger events that produce entries and exits from IWP, short-term poverty trajectories and the determinants associated to transient and persistent poverty. Drawing on a decomposition analysis of mutually exclusive events, the article shows that labor market events are the most relevant triggers for both exits and entries into IWP. Based on a multinomial logistic regression, the paper concludes that low education, the presence of children in the household, and having a low-quality job are the three main factors explaining persistent-poverty.

The focus in this chapter is on strict schemes of welfare conditionality that force and at times trap people in precarious work and in-work poverty. There is growing evidence that schemes are becoming increasingly punitive and, in this way, they force individuals into exploitative work and in-work poverty instead of supporting them to find a route out of poverty through paid work. Welfare-to-work schemes thereby often turn the unemployed or underemployed poor into working and exploited poor. By deploying coercive conditionality, legal rules push people into precarious work and generate state-mediated structures of injustice. These schemes can be viewed as having an appearance of legitimacy, as their stated purpose is to promote employment and hence social inclusion and also support people out of poverty. However, they create patterns that are very damaging for large numbers of people, while employers benefit from this situation. The problem here is not that activation policies or non-standard work arrangements can never be legitimate. The claim is that the state creates and sustains a system that can be viewed as legitimate in its aims but problematic when it becomes particularly punitive whilst also forcing the poor into exploitative employment relations that are (mostly) lawful, making exploitation standard and routine. Even though welfare-to-work schemes and non-standard work arrangements, taken separately, might not be necessarily unjust, the overall structure that forces people into workplace exploitation is unjust.

This chapter highlights the potential of a longitudinal approach to gain better insight into the dynamic patterns of working poverty. While cross-sectional research can show us the characteristics of people at risk of in-work poverty, it cannot show us how transitory or persistent in-work poverty is. A longitudinal approach can further our insight by showing the duration of in-work poverty, the typical sequence of events leading to working poverty and the patterns of exit from in-work poverty. It can furthermore show us which population groups are at risk of persistent working poverty, and how episodes of working poverty are embedded in the life course. We start this chapter with highlighting the advantages of a longitudinal approach to working poverty. In a second section we will review the existing research evidence on dynamic approaches to poverty and employment. In the third section we will introduce the research design needed to study dynamics of working poverty. This includes a discussion of the type of data necessary (socio-economic household panel data), as well as a brief overview of the relevant analysis techniques. The fourth section of the chapter includes empirical examples of the dynamics of in-work poverty.