In-Work Poverty Dynamics in European Labor Markets
Summary
Across European labour markets, in-work poverty has emerged as a pressing social and economic issue, characterised by individuals who, despite being in employment, earn insufficient income to rise above established poverty thresholds. This dynamic is fuelled by a combination of low hourly wages, unstable contractual arrangements and insufficient working hours, often exacerbated by household factors such as reliance on a single earner or limited access to social benefits. Cross-country comparisons reveal stark heterogeneity: nations with flexible labour markets and high part-time employment rates tend to experience more pronounced reductions in working hours, while those with greater income inequality exhibit deeper relative poverty at the bottom of the earnings distribution. Gender, education and age further mediate vulnerability, as do macro-level conditions like unemployment rates and the generosity of active labour market policies. The persistence of working poverty highlights the need for integrated policy responses that improve job quality, facilitate transitions to full-time work, and bolster income-support mechanisms, thereby advancing social inclusion and sustainable growth.
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In-Work Poverty Dynamics in European Labor Markets publication trend
The graph below shows the total number of articles in in-work poverty dynamics in european labor markets across all publications each year (not limited to Nature Index journals).
Technical terms
In-work poverty: The condition of employed individuals whose disposable household income falls below a defined poverty threshold.
Relative poverty threshold: A benchmark set at a proportion of the population’s median income to assess inequality levels.
Absolute poverty threshold: A fixed monetary level based on the cost of basic goods and services required for subsistence.
Full-time equivalent (FTE): A standardised measure of working hours facilitating comparisons between part-time and full-time employment.
Involuntary part-time employment: Work arrangements in which employees would prefer full-time hours but cannot secure them due to labour market constraints.
EU-SILC: European Union Statistics on Income and Living Conditions survey, a primary source of microdata on income, poverty and living standards.
References
- Is working enough to escape poverty? Evidence on low-paid workers in Italy. Structural Change and Economic Dynamics (2024).
- Individual and household in-work poverty in Europe: understanding the role of labor market characteristics. European Societies (2019).
- Jobs against poverty: a fixed-effects analysis on the link between gaining employment and exiting poverty in Europe. European Societies (2022).
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