IDEAS home Printed from https://ideas.repec.org/p/hdl/wpaper/1206.html
   My bibliography  Save this paper

Individual Employment, Household Employment and Risk of Poverty in the EU. A Decomposition Analysis

Author

Listed:
  • Vincent Corluy
  • Frank Vandenbroucke

Abstract

In this paper we explore missing links between employment policy success (or failure) and inclusion policy success (or failure), relying on the EU Labour Force Survey (EU LFS) and the EU Survey on Income and Living Conditions (EU SILC). At the inclusion side of the equation, our focus is on the share of individuals at risk of poverty in the 20-to-59 age cohort. The analysis proceeds in two steps. The first step considers the distribution of individual jobs over households, thus establishing a link between individual employment rates and household employment rates. Following the work by Gregg, Scutella and Wadsworth a ‘polarization index’ is defined in terms of the difference between, on the one hand, the hypothetical share of individuals living in jobless households assuming that individual employment is distributed randomly across households, and, on the other, the actual share of individuals living in jobless households. Actual changes in household joblessness are decomposed in (i) changes due to changes in polarization and (ii) changes due to changing individual employment rates and changing household structures. The second step in the analysis decomposes changes in the at-risk-of-poverty rates on the basis of (i) changes in the poverty risks of jobless households, and (ii) changes in the poverty risks of other (non-jobless) households; (iii) changes in household joblessness due to changes in individual employment rates and changing household structures (changes one would expect if no changes in polarization would occur) and (iv) changes in polarization. The proposed technique does yield interesting insights into the trajectories that EU welfare states have followed over the past ten years.

Suggested Citation

  • Vincent Corluy & Frank Vandenbroucke, 2012. "Individual Employment, Household Employment and Risk of Poverty in the EU. A Decomposition Analysis," Working Papers 1206, Herman Deleeck Centre for Social Policy, University of Antwerp.
    • Handle: RePEc:hdl:wpaper:1206
    as

    Download full text from publisher

    File URL: https://medialibrary.uantwerpen.be/oldcontent/container2453/files/CSB%20WP%202012/CSB_WP_12_06.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paul Gregg & Jonathan Wadsworth, 2008. "Two sides to every story: measuring polarization and inequality in the distribution of work," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 171(4), pages 857-875, October.
    2. Sala-i-Martin, Xavier X., 1996. "Regional cohesion: Evidence and theories of regional growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1325-1352, June.
    3. Paul Gregg & Rosanna Scutella & Jonathan Wadsworth, 2010. "Reconciling workless measures at the individual and household level. Theory and evidence from the United States, Britain, Germany, Spain and Australia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(1), pages 139-167, January.
    4. Cullen, Julie Berry & Gruber, Jonathan, 2000. "Does Unemployment Insurance Crowd Out Spousal Labor Supply?," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 546-572, July.
    5. Joachim R. Frick & Kristina Krell, 2010. "Measuring Income in Household Panel Surveys for Germany: A Comparison of EU-SILC and SOEP," SOEPpapers on Multidisciplinary Panel Data Research 265, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Frank Vandenbroucke & Koen Vleminckx, 2011. "Disappointing poverty trends : is the social investment state to blame? An exercise in soul-searching for policy-makers," Working Papers 1101, Herman Deleeck Centre for Social Policy, University of Antwerp.
    7. Danziger, Leif & Katz, Eliakim, 1996. "A theory of sex discrimination," Journal of Economic Behavior & Organization, Elsevier, vol. 31(1), pages 57-66, October.
    8. Ellwood, David T., 2000. "The Impact of the Earned Income Tax Credit and Social Policy Reforms on Work, Marriage, and Living Arrangements," National Tax Journal, National Tax Association, vol. 53(n. 4), pages 1063-1106, December.
    9. 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.
    10. Peter Dawkins & Paul Gregg & Rosanna Scutella, 2002. "The Growth of Jobless Households in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(2), pages 133-154, June.
    11. Ellwood, David T., 2000. "The Impact of the Earned Income Tax Credit and Social Policy Reforms on Work, Marriage, and Living Arrangements," National Tax Journal, National Tax Association;National Tax Journal, vol. 53(4), pages 1063-1106, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bea Cantillon, 2012. "GINI DP 52: Virtuous Cycles or Vicious Circles? The Need for an EU Agenda on Protection, Social Distribution and Investment," GINI Discussion Papers 52, AIAS, Amsterdam Institute for Advanced Labour Studies.
    2. repec:hdl:wpaper:1402 is not listed on IDEAS
    3. repec:aia:ginidp:dp51 is not listed on IDEAS
    4. Márton Medgyesi, 2014. "Components of income inequality and its change in EU countries, 2004-2010," ImPRovE Working Papers 14/01, Herman Deleeck Centre for Social Policy, University of Antwerp.
    5. Ive Marx & Brian Nolan, 2012. "GINI DP 51: In-Work Poverty," GINI Discussion Papers 51, AIAS, Amsterdam Institute for Advanced Labour Studies.
    6. Tim Goedemé & Diego Collado, 2016. "The EU Convergence Machine at Work. To the Benefit of the EU's Poorest Citizens?," Journal of Common Market Studies, Wiley Blackwell, vol. 54(5), pages 1142-1158, September.
    7. Tim Goedemé & Lorena Zardo Trindade & Frank Vandenbroucke, 2017. "A Pan-European Perspective on Low-Income Dynamics in the EU," Working Papers 1703, Herman Deleeck Centre for Social Policy, University of Antwerp.
    8. Frank Vandenbroucke, 2012. "The Active Welfare State Revisited," Working Papers 1209, Herman Deleeck Centre for Social Policy, University of Antwerp.

    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. 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.
    2. 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.
    3. 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.
    4. repec:hdl:wpaper:1402 is not listed on IDEAS
    5. DAVID M. BLAU & WILBERT van der KLAAUW, 2013. "What Determines Family Structure?," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 579-604, January.
    6. Nicole Simpson & Devin Reilly & Kartik Athreya, 2010. "The Earned Income Tax Credit: Insurance Without Disincentives?," 2010 Meeting Papers 1103, Society for Economic Dynamics.
    7. Hélène Périvier, 2007. "Les femmes sur le marché du travail aux Etats-Unis: une mise en perspective avec la France et la Suède," SciencePo Working papers Main hal-00972845, HAL.
    8. Eamon, Mary Keegan & Wu, Chi-Fang, 2011. "Effects of unemployment and underemployment on material hardship in single-mother families," Children and Youth Services Review, Elsevier, vol. 33(2), pages 233-241, February.
    9. Gordon Jong & Deborah Graefe & Tanja St. Pierre, 2005. "Welfare reform and interstate migration of poor families," Demography, Springer;Population Association of America (PAA), vol. 42(3), pages 469-496, August.
    10. Gunter, Samara, 2013. "State Earned Income Tax Credits and Participation in Regular and Informal Work," National Tax Journal, National Tax Association;National Tax Journal, vol. 66(1), pages 33-62, March.
    11. Isaac, Elliott & Jiang, Haibin, 2022. "Tax-Based Marriage Incentives in the Affordable Care Act," IZA Discussion Papers 15331, Institute of Labor Economics (IZA).
    12. Hélène Périvier, 2008. "Les femmes sur le marché du travail aux Etats-Unis," SciencePo Working papers Main hal-00973039, HAL.
    13. Hoynes, Hilary & Rothstein, Jesse, 2016. "Tax Policy Toward Low-Income Families," Department of Economics, Working Paper Series qt87d6v10j, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    14. Paul Gregg & Rosanna Scutella & Jonathan Wadsworth, 2010. "Reconciling workless measures at the individual and household level. Theory and evidence from the United States, Britain, Germany, Spain and Australia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(1), pages 139-167, January.
    15. Susan Averett & Yang Wang, 2013. "The Effects Of Earned Income Tax Credit Payment Expansion On Maternal Smoking," Health Economics, John Wiley & Sons, Ltd., vol. 22(11), pages 1344-1359, November.
    16. Nicole Simpson & Jill Tiefenthaler & Jameson Hyde, 2010. "The Impact of the Earned Income Tax Credit on Economic Well-Being: A Comparison Across Household Types," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 29(6), pages 843-864, December.
    17. Moffitt, Robert A., 2002. "Welfare programs and labor supply," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 34, pages 2393-2430, Elsevier.
    18. James X. Sullivan, 2006. "Welfare Reform, Saving, and Vehicle Ownership: Do Asset Limits and Vehicle Exemptions Matter?," Journal of Human Resources, University of Wisconsin Press, vol. 41(1).
    19. V. Joseph Hotz & John Karl Scholz, 2006. "Examining the Effect of the Earned Income Tax Credit on the Labor Market Participation of Families on Welfare," NBER Working Papers 11968, National Bureau of Economic Research, Inc.
    20. Bastani, Spencer & Moberg, Ylva & Selin, Håkan, 2016. "Estimating participation responses using transfer program reform," Working Paper Series, Center for Labor Studies 2016:4, Uppsala University, Department of Economics.
    21. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," Journal of Economic Literature, American Economic Association, vol. 40(4), pages 1105-1166, December.

    More about this item

    Keywords

    at-risk-of-poverty rate; convergence across EU; jobless and work-poor households; polarization of employment;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:hdl:wpaper:1206. 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: Santiago Burone (email available below). General contact details of provider: https://edirc.repec.org/data/csbuabe.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.