GINI DP 15: Can higher employment levels bring down poverty in the EU?
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.
|Date of creation:||Oct 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Nieuwe Prinsengracht 130, 1018 VZ Amsterdam|
Web page: http://www.uva-aias.net
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
When requesting a correction, please mention this item's handle: RePEc:aia:ginidp:15. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiemer Salverda)
If references are entirely missing, you can add them using this form.