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Employment and poverty dynamics in the EU countries before, during and after the crisis

Author

Listed:
  • András Gábos
  • Réka Branyiczki
  • Barbara Lange
  • György Tóth

Abstract

The paper aims to contribute to a better understanding of how employment change relates to changes in poverty in the European Union’s Member States by looking at both micro and macro level correlations. EU-LFS and EU-SILC data are used to analyse trends between 2005 and 2012, to reflect also on the societal effects of the financial and economic crisis. Time series for this period show that the crisis has resulted in very different employment trajectories. Larger volatility in employment was accompanied by a relatively sizeable change in poverty rates as well. According to our preferred regression model estimates, poverty to employment elasticity has been around 25 percent on average in the EU in the period between 2005 and 2012. The decomposition of poverty changes shows that countries differ greatly in the portion of total poverty changes attributed to changes in the poverty rates of both individuals living in jobless and non-jobless households, as well as in the portion of total poverty changes attributed to the changes in the population share of those in jobless households. We conclude that the success of poverty reduction depends to a large extent on three factors: the dynamics of overall employment growth, the fair distribution of the employment growth across households with different work intensity and properly designed social welfare systems to smooth out income losses for those families who are, for some reasons, unable to generate sufficient income for themselves from the labour markets.

Suggested Citation

  • András Gábos & Réka Branyiczki & Barbara Lange & György Tóth, 2015. "Employment and poverty dynamics in the EU countries before, during and after the crisis," ImPRovE Working Papers 15/06, Herman Deleeck Centre for Social Policy, University of Antwerp.
    • Handle: RePEc:hdl:improv:1506
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Alexander Ahammer & Stefan Kranzinger, 2017. "Poverty in Times of Crisis," Economics working papers 2017-03, Department of Economics, Johannes Kepler University Linz, Austria.
    2. Ning Xu & Chang’an Li, 2023. "Migration and Rural Sustainability: Relative Poverty Alleviation by Geographical Mobility in China," Sustainability, MDPI, vol. 15(7), pages 1-27, April.
    3. Bea Cantillon & Sarah Marchal & Chris Luigjes, 2017. "Decent Incomes for the Poor: Which Role for Europe?," Journal of Common Market Studies, Wiley Blackwell, vol. 55(2), pages 240-256, March.
    4. Abdulrahman Idris Abdulganiyu, 2022. "Measuring the Impact of Human Resource Development on Poverty Incidence in Nigeria: A Bound Testing Approach," Economics and Culture, Sciendo, vol. 19(2), pages 81-96, December.
    5. Bea Cantillon & Sarah Marchal & Chris Luigjes, 2015. "Decent incomes for the poor: which role for Europe?," ImPRovE Working Papers 15/20, Herman Deleeck Centre for Social Policy, University of Antwerp.
    6. Antonello Scialdone, 2015. "La rete e il trampolino. Indirizzi comunitari in materia di welfare ed investimenti sociali," QUADERNI DI ECONOMIA DEL LAVORO, FrancoAngeli Editore, vol. 2015(103), pages 169-182.
    7. András Gábos & Tim Goedemé, 2016. "The Europe 2020 social inclusion indicators: main conclusions of the ImPRovE project on validity, methodological robustness and interrelationships," ImPRovE Working Papers 16/13, Herman Deleeck Centre for Social Policy, University of Antwerp.
    8. Alexandros Karakitsios & Manos Matsaganis, 2018. "Minimum Wage Effects on Poverty and Inequality," DEOS Working Papers 1801, Athens University of Economics and Business.
    9. Jehane Simona-Moussa & Laura Ravazzini, 2019. "From One Recession to Another: Longitudinal Impacts on the Quality of Life of Vulnerable Groups," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(3), pages 1129-1152, April.

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    More about this item

    Keywords

    individual employment; work intensity; poverty; social policy; financial crisis; EU-SILC; panel regression;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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