In-Work Poverty, Social Protection, and Labor Market Institutions in Europe

In-work poverty (IWP), defined as the condition of being employed while still facing a risk of poverty, has emerged as a persistent challenge in European societies. It reflects structural imbalances in labor markets, including the expansion of non-standard and low-paid employment, as well as the varying ability of welfare states to mitigate income inequalities. This underscores the well-established fact that employment and labour market participation alone cannot be considered reliable protective factors against the risk of poverty.

IWP is a complex phenomenon, encompassing both individual and household dimensions. It is defined by the employment status of individuals—typically workers employed for at least six months in a year—combined with the condition of living in a household at risk of poverty. Given this dual nature, addressing and reducing the incidence of IWP presents considerable challenges (...)