The dynamics of employment and economic exclusion

Abstract

In 2000, approximately five percent of the working-age population were “working poor”. The risk of poverty is higher than average among women, young people, and the less educated. Poverty is also particularly prevalent in large families and in single-parent households. The quality of employment affects poverty. Those engaged in low-wage work, part-time work, and short-term employment contracts are at risk of being working poor. Such non-standard employment relationships are particularly common among women.

Young and highly educated individuals are more likely to exit poverty than the less educated and older individuals. Exiting poverty becomes more difficult the longer the poverty spell lasts.

Measures implemented by labour administration have improved the situation of the working poor. Labour market training increased the number of months worked and reduced poverty. The extension of the employment condition for unemployment benefits also increased employment and reduced poverty among those who would have met the previous employment condition but not the new one. By contrast, subsidised employment had little effect in alleviating poverty.

The ability of employed persons to improve their standard of living by increasing work depends on labour demand. (AI translation)

Publication Information

Kauhanen, M. (2005), Työssäkäynnin ja taloudellisen syrjäytymisen dynamiikka, Työministeriö, Työpoliittinen tutkimus 276.

• ISSN: 1236-7176