Decomposition of Changes in Elderly Poverty across 16 European Countries: 2005-2022

Koen Caminada (), Kees Goudswaard (), Jingqi Liu, Chen Wang () and Jinxian Wang ()

No 882, LIS Working papers from LIS Cross-National Data Center in Luxembourg

Abstract: Relative poverty has, in general, become a popular source of interest for research and the public debate. However, only a few studies have focused on the determinants of relative poverty among the elderly in a comparative setting over time. To fill in this gap, this study decomposed changes in relative poverty among the elderly in 16 European countries based on micro data from the Luxembourg Income Study from around 2005 to around 2022 and the reweighting RIF-OB decomposition method. The results show that relative poverty among the elderly has decreased. The decomposition results suggest that household labour force participation, university attendance of the household head, public and private pensions have been key drivers in reducing the poverty rates, while living alone have contributed to a higher poverty rate. Our results may have policy implications. To reduce poverty among the elderly, job opportunities and the efficiency of pensions can be improved.

JEL-codes: D31 D33 I3 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2025-02
New Economics Papers: this item is included in nep-age, nep-eur and nep-tra
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