Why are Some Workers Poor? The Mechanisms that Produce Working Poverty in a Comparative Perspective

REC-WP Working Papers on the Reconciliation of Work and Welfare in Europe No. 12-2010

31 Pages Posted: 13 Oct 2010

See all articles by Eric Crettaz

Eric Crettaz

University of Neuchatel

Giuliano Bonoli

University of Lausanne - Swiss Graduate School of Public Administration

Date Written: October 1, 2010

Abstract

The objective of this article is to distinguish between different types of working poverty, on the basis of the mechanisms that produce it. Whereas the poverty literature identifies a myriad of risk factors and of categories of disadvantaged workers, we focus on three immediate causes of in-work poverty, namely low remuneration rate, weak labor force attachment, and high needs, the latter mainly due to the presence of children (and sometimes to the increase in needs caused by a family breakup). These three mechanisms are the channels through which macroeconomic, demographic and policy factors have a direct bearing on working households. The main assumption tested here is that welfare regimes strongly influence the relative weight of these three mechanisms in producing working poverty. Our figures confirm this hypothesis and show that low-wage employment is a key factor but, by far, not the only one, and that family policies broadly understood play a decisive role, as well as patterns of labour market participation and integration.

Keywords: Working Poverty, Welfare Regimes, Welfare State, Poverty Mechanisms

Suggested Citation

Crettaz, Eric and Bonoli, Giuliano, Why are Some Workers Poor? The Mechanisms that Produce Working Poverty in a Comparative Perspective (October 1, 2010). REC-WP Working Papers on the Reconciliation of Work and Welfare in Europe No. 12-2010, Available at SSRN: https://ssrn.com/abstract=1691662 or http://dx.doi.org/10.2139/ssrn.1691662

Eric Crettaz (Contact Author)

University of Neuchatel ( email )

1, A.-L. Breguet
Neuchatel, CH-2000
Switzerland

Giuliano Bonoli

University of Lausanne - Swiss Graduate School of Public Administration ( email )

R.te de la Maladière 21
Chavannes-Renens, CH-1022
Switzerland

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