Mobility and Persistence of In-Work Poverty

Abstract

Cross-sectional indicators usually show levels of poverty and in-work poverty (IWP) that have not decreased or which have even increased slightly in recent decades in Europe. Also, differences between countries with respect to relative poverty levels are stable to a large extent. However, since mobility is usually high in these situations, crosssectional indicators provide only limited information. Most poverty episodes are short-lasting while many of the people who have come out of poverty return relatively soon to it. As a consequence, the percentage of persons who experience a period of poverty at some time during their lives is much higher than the percentage of persons affected by poverty in a certain year. Furthermore, those who suffer chronic or persistent poverty situations are a minority. Mobility, recurrence or persistence in poverty situations are not captured by cross-sectional analyses and are fundamental to the understanding of poverty.