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Second earners and in-work poverty in Europe

Jara, H Xavier and Popova, Daria (2021) 'Second earners and in-work poverty in Europe.' Journal of Social Policy, 50 (3). pp. 470-492. ISSN 0047-2794

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Dual or multiple earnership has been considered an important factor to prevent in-work poverty. The aim of this paper is to quantify the impact of second earnership on the risk of in-work poverty and the role of the tax-benefit system in moderating this risk. Our analysis refers to 2014 and employs EUROMOD, the tax-benefit microsimulation model for the European Union and the United Kingdom. In order to assess the role of second earners in preventing in-work poverty we simulate a counterfactual scenario where second earners become unemployed. Our results show that the effect of net replacement rates (i.e. the ratio of household income before and after the transition of second earners to unemployment) on the probability of in-work poverty is negative and statistically significant, but in relative terms it appears to be small compared to the effects of individual labour market characteristics, such as low pay and part-time employment.

Item Type: Article
Uncontrolled Keywords: dual earnership; social policy; income distribution; poverty; Europe; second earners
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Institute for Social and Economic Research
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 17 Apr 2020 14:34
Last Modified: 14 Feb 2022 10:57

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