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Second earners and in-work poverty in the EU

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  • Popova, Daria
  • Xavier Jara Tamayo, Holguer

Abstract

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 systems in moderating this risk. Our analysis refers to 2014 and employs EU-SILC data and EUROMOD, the tax-benefit microsimulation model for EU-28. We apply a pre-post analysis in combination with microsimulation techniques to assess the role of second earners in preventing in-work poverty. This is done by simulating a counterfactual scenario where second earners become unemployed. Our results show that the effect of net replacement rates of second earners 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.

Suggested Citation

  • Popova, Daria & Xavier Jara Tamayo, Holguer, 2019. "Second earners and in-work poverty in the EU," EUROMOD Working Papers EM10/19, EUROMOD at the Institute for Social and Economic Research.
    • Handle: RePEc:ese:emodwp:em10-19
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    References listed on IDEAS

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    1. Hans-Jürgen Andreß & Henning Lohmann (ed.), 2008. "The Working Poor in Europe," Books, Edward Elgar Publishing, number 13060.
    2. Stuart Adam & Mike Brewer & Andrew Shephard, 2006. "Financial work incentives in Britain: comparisons over time and between family types," IFS Working Papers W06/20, Institute for Fiscal Studies.
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    Cited by:

    1. Osnat Peled & Ella Shachar, 2021. "Poor Workers Or Working Poor?," Israel Economic Review, Bank of Israel, vol. 19(1), pages 59-102.

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