Globalization and the working poor
Joel Hellier and
Ekaterina Kalugina ()
No 355, Working Papers from ECINEQ, Society for the Study of Economic Inequality
We analyse the effect of globalisation on the incidence of in-work poverty in advanced European countries. We firstly develop an analytical framework that provides bases for the empirical work. Using the EU-SILC database between 2005 and 2010 supplemented by macro-data, we apply both a fixed effect model at the country level and a multilevel model at the individual level. In line with the analytical predictions, trade with emerging countries has a positive and significant effect on in-work poverty whereas the effect of trade with developed countries is non-significant. The impact of social protection indicators is non-significant as well, which suggest that the efficiency effect and the compensation effect could balance each other. Hence, globalization has a positive effect on in-work poverty, which is essentially based on trade with emerging countries.
Keywords: Working poor; globalisation; Europe. (search for similar items in EconPapers)
JEL-codes: F66 H26 I32 J31 J32 (search for similar items in EconPapers)
Pages: 40 pages
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Persistent link: https://EconPapers.repec.org/RePEc:inq:inqwps:ecineq2015-355
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