Poor workers in advanced democracies: on the nature of in-work poverty and its relationship to labour market policies

Rod Hick and Ive Marx

Chapter 34 in Handbook of Labour Market Policy in Advanced Democracies, 2023, pp 495-507 from Edward Elgar Publishing

Abstract: In recent years in-work poverty has become widely acknowledged as a pervasive problem in affluent democracies, and not merely one that is only found in the USA and other “‘liberal” market economies. However, profound misunderstandings persist as to the nature and causes of this phenomenon and, therefore, also the most appropriate policy responses. This chapter explores the nature and extent of in-work poverty and its relationship to labour market trends and labour market policies. It emphasizes evidence on the contingent relationship between low pay and working poverty and the importance of aggregate labour market performance, second earnership in particular. The implications for the various policy levers through which governments can tackle in-work poverty are discussed.

Keywords: Economics and Finance; Sociology and Social Policy; Sustainable Development Goals (search for similar items in EconPapers)
Date: 2023
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