What Triggers Poverty of Young Nationals and Young Migrants? A Comparative Macroeconomic Approach

Abstract

Abstract Identifying the macro-economic determinants of poverty is a key concern for developing poverty reduction policies. Since young people and young migrants in particular are more exposed to poverty, establishing the factors that trigger poverty among these social categories has even more relevance. A preliminary analysis shows that significant differences exist between at-risk-of poverty or social exclusion rate of young migrants and young nationals across European countries. For a more thorough study of the reasons behind these differences in poverty rates between young migrants and young nationals, two panel data regression models are estimated on a cross-section of 23 countries over the period 2010 – 2018 (one model for young migrants, the other for young nationals). Results confirm the main theories in the specialty literature: unemployment and inequality (measured by the Gini index) are the main triggers of poverty or social exclusion both for young nationals and young migrants. However, the income is significant for reducing poverty only for young nationals, but not for the young migrants. This result reinforces the necessity of better integration policies for young migrants in richer Member States.