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Working poor trajectories

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Author Info

  • Joël Hellier

    () (EQUIPPE, University of Lille 1, and LEMNA, University of Nantes)

Abstract

To analyse in-work poverty, we build a model in which human capital and productivity varies over time with experience, time-related obsolescence and poverty. The model reveals four possible trajectories: poverty to exclusion; permanent poverty; the emergence from poverty; poverty to non-poor worker and back to poverty. It also generates the main traits of in-work poverty in terms of skill, age, duration, and family characteristics. Both skill-biased technical change and globalisation boost in-work poverty and exclusion. When unemployment compensation is introduced, being a poor worker can be a rational choice for individuals who accept lower pay today to earn more tomorrow.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2012-280.pdf
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Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 280.

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Length: 23 pages
Date of creation: Nov 2012
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2012-280

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Web page: http://www.ecineq.org
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Keywords: Exclusion; poverty; working poor.;

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  1. Henning Lohmann, 2008. "Welfare States, Labour Market Institutions and the Working Poor: A Comparative Analysis of 20 European Countries," Discussion Papers of DIW Berlin 776, DIW Berlin, German Institute for Economic Research.
  2. Nathalie Chusseau & Michel Dumont & Jo�l Hellier, 2008. "Explaining Rising Inequality: Skill-Biased Technical Change And North-South Trade ," Journal of Economic Surveys, Wiley Blackwell, vol. 22(3), pages 409-457, 07.
  3. Dasgupta, Partha & Ray, Debraj, 1986. "Inequality as a Determinant of Malnutrition and Unemployment: Theory," Economic Journal, Royal Economic Society, vol. 96(384), pages 1011-34, December.
  4. Dasgupta, Partha & Ray, Debraj, 1987. "Inequality as a Determinant of Malnutrition and Unemployment: Policy," Economic Journal, Royal Economic Society, vol. 97(385), pages 177-88, March.
  5. Bliss, Christopher & Stern, Nicholas, 1978. "Productivity, wages and nutrition : Part I: the theory," Journal of Development Economics, Elsevier, vol. 5(4), pages 331-362, December.
  6. David Gleicher & Lonnie K. Stevans, 2005. "A Comprehensive Profile of the Working Poor ," LABOUR, CEIS, vol. 19(3), pages 517-529, 09.
  7. Bliss, Christopher & Stern, Nicholas, 1978. "Productivity, wages and nutrition : Part II: Some observations," Journal of Development Economics, Elsevier, vol. 5(4), pages 363-398, December.
  8. Maite Blázquez Cuesta & Wiemer Salverda, 2009. "Low-wage Employment and the Role of Education and On-the-job Training," LABOUR, CEIS, vol. 23(s1), pages 5-35, 03.
  9. Fouarge, Didier & Layte, Richard, 2005. "Welfare regimes and poverty dynamics: The duration and recurrence of poverty spells in Europe," Open Access publications from Maastricht University urn:nbn:nl:ui:27-17252, Maastricht University.
  10. Cormier, David & Craypo, Charles, 2000. "The Working Poor and the Working of American Labour Markets," Cambridge Journal of Economics, Oxford University Press, vol. 24(6), pages 691-708, November.
  11. Marlene Kim & Thanos Mergoupis, 1998. "The Working Poor and Welfare Recipiency," Macroeconomics 9810006, EconWPA.
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