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Poverty, income inequality and unemployment in Spain in the 2008's Financial Crises

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  • Workneh, Migbaru Alamirew

Abstract

The main objective of this paper is to examine the contribution of the high unemployment rate for the increase in the level of poverty and income inequality during and after the 2008 global financial crisis in Spain. Secondary household survey data from the European Union database (EU_SLIC) for 2008 and 2014 was used for the descripitive and inferential statistics. The two years are chosen purposely since 2008 was the year that the global financial crisis began, and 2014 was the year that unemployment rate was very high and Spain's economy was starting to revive from the crisis. Binary Logistic regression is used for inferential statistics since the dependent variable (being poor) is a binary variable and basic activity status (with four categorical variables), citizenship (with three categorical variables) and number of workers in the household (as a ratio of the total number of individuals in the household) are used as explanatory variables. Based on the descriptive and inferential statistics results, the contribution of the high unemployment rate for the increase in poverty rate and income inequality was high in Spain during and after the 2008 global financial crisis. The probability of being poor for unemployed increases from 0.18 in 2008 to 0.255 in 2014. Being unemployed, being inactive households, and being from other citizens are more likely to poor compared with workers, and local citizens respectively.

Suggested Citation

  • Workneh, Migbaru Alamirew, 2018. "Poverty, income inequality and unemployment in Spain in the 2008's Financial Crises," MPRA Paper 92462, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:92462
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    References listed on IDEAS

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    1. Carol Yeh-Yun Lin & Leif Edvinsson & Jeffrey Chen & Tord Beding, 2013. "National Intellectual Capital and the Financial Crisis in Greece, Italy, Portugal, and Spain," SpringerBriefs in Economics, Springer, edition 127, number 978-1-4614-5990-3, June.
    2. Inmaculada Herranz Aguayo & Eduardo Díaz Herráiz & Elsa Montenegro Marques & Idalina Machado & Sidalina Almeida, 2016. "Child at Risk of Poverty or Social Exclusion: Comparative View Between Spain and Portugal in the European Context," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(3), pages 961-978, December.
    3. Conchita D'Ambrosio & Joseph Deutsch & Jacques Silber, 2009. "Multidimensional approaches to poverty measurement: an empirical analysis of poverty in Belgium, France, Germany, Italy and Spain, based on the European panel," Applied Economics, Taylor & Francis Journals, vol. 43(8), pages 951-961.
    4. Inmaculada Herranz Aguayo & Eduardo Díaz Herráiz & Elsa Montenegro Marques & Idalina Machado & Sidalina Almeida, 2016. "Erratum to: Child at Risk of Poverty or Social Exclusion: Comparative View Between Spain and Portugal in the European Context," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(3), pages 1401-1403, December.
    5. Carol Yeh-Yun Lin & Leif Edvinsson, 2013. "National intellectual capital in Israel and financial crisis impact," International Journal of Knowledge-Based Development, Inderscience Enterprises Ltd, vol. 4(3), pages 245-273.
    6. Carol Yeh-Yun Lin & Leif Edvinsson & Jeffrey Chen & Tord Beding, 2013. "National Intellectual Capital and the Financial Crisis in China, Hong Kong, Singapore, and Taiwan," SpringerBriefs in Economics, Springer, edition 127, number 978-1-4614-5984-2, June.
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    More about this item

    Keywords

    Keywords: Poverty; Inequality; Unemployment; Financial crisis; Binary Logit model;
    All these keywords.

    JEL classification:

    • D00 - Microeconomics - - General - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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