In-work poverty in times of crisis: do part-timers fare worse?
AbstractPart-time work has structurally increased across Europe. The recent crisis period has brought additional increases in many countries, especially in involuntary part-time employment. This paper considers the link between part-time work and poverty, taking a comparative perspective across the EU15. The extent to which part-time work is associated with poverty varies considerably, far more so than for full-time workers. Involuntary part-time work clearly stands out as most problematic although an increased poverty risk is not confined to that segment of part-time work. Part-time work for care reasons also carries a higher poverty risk in some countries. It is most problematic in countries where demand and supply side related factors reinforce each other so as to make part-time work an inferior choice from the perspective of preferred working hours, earnings and employment security. Moreover, part-timers sometimes face a ‘double income penalty’ in that they are more likely to have lower earnings and reduced eligibility for certain social transfers. However, there is again considerable cross-country variation in this respect. In some countries actually the reverse is the case and part-timers are in effect more likely to receive social transfers, while being in employment, improving their post-transfer poverty position in a significant way. Taken together, the paper shows that the regulatory drivers shaping part-time work and the welfare state arrangements supporting, or failing to support part-time work play key roles in accounting for the wide variation in poverty risks associated with part-time work across the EU15.
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Bibliographic InfoPaper provided by Herman Deleeck Centre for Social Policy, University of Antwerp in its series ImPRovE Working Papers with number 13/14.
Date of creation: Aug 2013
Date of revision:
in-work poverty; part-time work; tax benefit systems; EU15; EU-SILC;
Find related papers by JEL classification:
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy
- J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-25 (All new papers)
- NEP-EUR-2013-09-25 (Microeconomic European Issues)
- NEP-LAM-2013-09-25 (Central & South America)
- NEP-LTV-2013-09-25 (Unemployment, Inequality & Poverty)
- NEP-NEU-2013-09-25 (Neuroeconomics)
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