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Working poor trajectories

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  • 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.

Suggested Citation

  • Joël Hellier, 2012. "Working poor trajectories," Working Papers 280, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2012-280
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2012-280.pdf
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    References listed on IDEAS

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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 & Joël 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, July.
    3. Marlene Kim & Thanos Mergoupis, 1995. "The Working Poor and Welfare Recipiency," Economics Working Paper Archive wp_151, Levy Economics Institute.
    4. Dasgupta, Partha & Ray, Debraj, 1987. "Inequality as a Determinant of Malnutrition and Unemployment: Policy," Economic Journal, Royal Economic Society, vol. 97(385), pages 177-188, 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, September.
    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. Dasgupta, Partha & Ray, Debraj, 1986. "Inequality as a Determinant of Malnutrition and Unemployment: Theory," Economic Journal, Royal Economic Society, vol. 96(384), pages 1011-1034, December.
    9. 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, March.
    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.
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    Cited by:

    1. Joel Hellier & Ekaterina Kalugina, 2015. "Globalization and the working poor," Working Papers 355, ECINEQ, Society for the Study of Economic Inequality.

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    More about this item

    Keywords

    Exclusion; poverty; working poor.;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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