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Working Poor Trajectories

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  • Joël Hellier

    (Université de Lille Nord-de-France)

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, and finally, from poverty to non-poor worker and then 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 globalization 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," Journal of Income Distribution, Ad libros publications inc., vol. 21(3-4), pages 83-102, November.
    • Handle: RePEc:jid:journl:y:2012:v:21:i:3-4:p:83-102
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    File URL: http://jid.journals.yorku.ca/index.php/jid/article/view/38674
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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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