IDEAS home Printed from https://ideas.repec.org/p/aia/ginidp/15.html
   My bibliography  Save this paper

GINI DP 15: Can higher employment levels bring down poverty in the EU?

Author

Listed:
  • Ive Marx

    (Centre for Social Policy, University of Antwerp)

  • Pieter Vandenbroucke

    (Centrum voor Sociaal Beleid, Herman Deleeck, Universiteit Antwerpen)

  • Verbist, G. (Gerlinde)

Abstract

At the European level and in most EU member states, higher employment levels are seen as key to better poverty outcomes. But what can we expect the actual impact to be? Up until now shift-share analysis has been used to estimate the impact of rising employment on relative income poverty. This method has serious limitations. We propose a more sophisticated simulation model that builds on regression based estimates of employment probabilities and wages. We use this model to estimate the impact on relative income poverty of moving towards the Europe 2020 target of 75 percent of the working aged population in work. Two sensitivity checks are included: giving priority in job allocation to jobless households and imputing low instead of estimated wages. This article shows that employment growth does not necessarily result in lower relative poverty shares, a result that is largely consistent with observed outcomes over the past decade.

Suggested Citation

  • Ive Marx & Pieter Vandenbroucke & Verbist, G. (Gerlinde), 2011. "GINI DP 15: Can higher employment levels bring down poverty in the EU?," GINI Discussion Papers 15, AIAS, Amsterdam Institute for Advanced Labour Studies.
    • Handle: RePEc:aia:ginidp:15
    as

    Download full text from publisher

    File URL: https://www1.feb.uva.nl/aias/DP15-Marx,Vandenbroucke,Verbist.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hans-Jürgen Andreß & Henning Lohmann (ed.), 2008. "The Working Poor in Europe," Books, Edward Elgar Publishing, number 13060.
    2. Marloes Graaf-zijl & Brian Nolan, 2011. "GINI DP 5: Household Joblessness and its Impacts on Poverty and Deprivation in Europe," GINI Discussion Papers 5, AIAS, Amsterdam Institute for Advanced Labour Studies.
    3. Bea Cantillon, 2011. "The Paradox of the Social Investment State. Growth, Employment and Poverty in the Lisbon Era," Working Papers 1103, Herman Deleeck Centre for Social Policy, University of Antwerp.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marx, Ive & Vandenbroucke, Pieter & Verbist, Gerlinde, 2011. "Can Higher Employment Levels Bring Lower Poverty in the EU? Regression Based Simulations of the Europe 2020 Target," IZA Discussion Papers 6068, Institute of Labor Economics (IZA).
    2. Watson, Dorothy & Maître, Bertrand & Whelan, Christopher T., 2012. "Work and Poverty in Ireland: An Analysis of CSO Survey on Income and Living Conditions 2004-2010," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT226, June.
    3. Andrea Brandolini & Alfonso Rosolia, 2019. "The Distribution of Well-Being among Europeans," SOEPpapers on Multidisciplinary Panel Data Research 1052, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Hristina Blagoycheva, 2016. "Employment and the 'Working Poor' Phenomenon in the EU," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 3-18.
    5. Mary Daly, 2012. "Paradigms in EU social policy: a critical account of Europe 2020," Transfer: European Review of Labour and Research, , vol. 18(3), pages 273-284, August.
    6. Ive Marx & Sarah Marchal & Brian Nolan, 2012. "GINI DP 56: Mind the Gap: Net Incomes of Minimum Wage Workers in the EU and the US," GINI Discussion Papers 56, AIAS, Amsterdam Institute for Advanced Labour Studies.
    7. Marx, Ive & Nolan, Brian & Olivera, Javier, 2014. "The Welfare State and Anti-Poverty Policy in Rich Countries," IZA Discussion Papers 8154, Institute of Labor Economics (IZA).
    8. Rense Nieuwenhuis & Wim Lancker & Diego Collado & Bea Cantillon, 2020. "Trends in Women’s Employment and Poverty Rates in OECD Countries: A Kitagawa–Blinder–Oaxaca Decomposition," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 6(1), pages 37-61, March.
    9. Andrea Brandolini & Eliana Viviano, 2016. "Behind and beyond the (head count) employment rate," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 179(3), pages 657-681, June.
    10. Jeroen Horemans, 2016. "Polarisation of Non-standard Employment in Europe: Exploring a Missing Piece of the Inequality Puzzle," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(1), pages 171-189, January.
    11. Rense Nieuwenhuis & Wim van Lancker & Diego Collado & Bea Cantillon, 2016. "Has the Potential for Compensating Poverty by Women's Employment Growth Been Depleted?," LIS Working papers 664, LIS Cross-National Data Center in Luxembourg.
    12. Bea Cantillon & Wim Van Lancker, 2011. "Solidarity and reciprocity in the social investment state: what can be learned from the case of Flemish school allowances and truancy?," Working Papers 1109, Herman Deleeck Centre for Social Policy, University of Antwerp.
    13. Detomasi, Richard, 2018. "Abordaje espacial de políticas públicas: cuidados y primera infancia," Coediciones, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 44168, March.
    14. Sang-Yong Sim, 2018. "A Comparative Study of the Institutional Factors Influencing Working Poverty: Focusing on Two-parent Households in Developed OECD Countries," LIS Working papers 676, LIS Cross-National Data Center in Luxembourg.
    15. Sara Baiocco & Cinzia Alcidi & Francesco Corti & Mattia Di Salvo, 2022. "Changing Social Investment Strategies in the EU," JRC Working Papers on Labour, Education and Technology 2022-01, Joint Research Centre.
    16. Chiara Mussida & Dario Sciulli, 2023. "Low pay and household poverty in Italy," Working Papers 635, ECINEQ, Society for the Study of Economic Inequality.
    17. Bea Cantillon & Natascha Van Mechelen, 2013. "Poverty reduction and social security: Cracks in a policy paradigm," Working Papers 1304, Herman Deleeck Centre for Social Policy, University of Antwerp.
    18. Asaf Levanon & Einat Lavee & Roni Strier, 2021. "Explaining the Factors Shaping the Likelihood of Poverty Among Working Families by Using a Concurrent Mixed Method Design," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 157(3), pages 1089-1109, October.
    19. Leventi, Chrysa & Rastrigina, Olga & Sutherland, Holly, 2015. "Nowcasting risk of poverty and low work intensity in Europe," EUROMOD Working Papers EM9/15, EUROMOD at the Institute for Social and Economic Research.
    20. Stephen P. Jenkins, 2020. "Perspectives on Poverty in Europe. Following in Tony Atkinson’s Footsteps," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 6(1), pages 129-155, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aia:ginidp:15. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiemer Salverda (email available below). General contact details of provider: https://edirc.repec.org/data/aiuvanl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.