Growth in Unemployment Raises Poverty Rates: Most Low-Wage Earnings Constitute Supplement to Primary Household Income
AbstractInequality with respect to personal earned income has increased in recent years. This trend has gone hand in hand with changes in both the employment constellations of households and the labor market activity of individuals (e.g. through 'minijobs'). In particular, the years since 2000 have seen a rise in the share of households with no market income because their members are either registered or hidden unemployed. These findings do not necessarily indicate an increase in relative poverty, because the latter depends on net household income and not just on individual primary incomes. While the risk of poverty also increased in recent years amongst low-wage earners, the rise only applied to those 47% of low-wage earners who live in households without another gainfully employed household member. More than half of all low-wage earners live in households that have a below-average risk of poverty. Unemployment still represents the principal risk factor for poverty. Whereas the likelihood of being poor in the event of unemployment was 29% in 1993, this risk had increased by ten percentage points by 2003. For an unemployed person living alone or whose spouse or partner was not working, the risk of poverty in 2003 was a substantial risk of 53%.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by DIW Berlin, German Institute for Economic Research in its journal Weekly Report.
Volume (Year): 1 (2005)
Issue (Month): 10 ()
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Joachim R. Frick & Jan Goebel, 2005.
"Regional Income Stratification in Unified Germany using a Gini Decomposition Approach,"
15, ECINEQ, Society for the Study of Economic Inequality.
- Joachim Frick & Jan Goebel, 2008. "Regional Income Stratification in Unified Germany Using a Gini Decomposition Approach," Regional Studies, Taylor & Francis Journals, vol. 42(4), pages 555-577.
- Frick, Joachim R. & Goebel, Jan, 2005. "Regional Income Stratification in Unified Germany Using a Gini Decomposition Approach," IZA Discussion Papers 1891, Institute for the Study of Labor (IZA).
- Joachim R. Frick & Jan Goebel, 2005. "Regional Income Stratification in Unified Germany Using a Gini Decomposition Approach," Discussion Papers of DIW Berlin 540, DIW Berlin, German Institute for Economic Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.