This chapter investigates how changes in employment and poverty relate to each other across the European Union’s Member States. Large employment volatility was accompanied by sizable changes in poverty rates between 2005 and 2012. Based on panel regression results, the poverty to employment elasticity was estimated to be around 25% on average. The role of changes in the poverty rates of individuals in jobless and non-jobless households and of changes in the share of those in jobless households differs greatly across countries. The success of poverty reduction depends to a large extent on three factors: the dynamics of overall employment growth, the fair distribution of employment growth across households with different levels of work intensity, and properly designed social welfare systems to smooth out income losses for families in need.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.