Leen Vandecasteele (University of Manchester & WZB Berlin)
Marco Gießelmann (University of Cologne)
Working poverty is on the increase and is acknowledged as a substantial welfare risk in most post-industrial societies (Andreß and Lohmann 2008). This paper investigates transitions to in-work poverty in Germany and Great Britain. Despite similar levels of overall in-work poverty, the life events associated with entry into in-work poverty are expected to differ according to the way this risk is managed and countered by the welfare system.
The theoretical part of the paper outlines how the in-work poverty risk is mediated by both labour market institutional framework as well as its welfare system. Consequently, empirical analysis on the basis of the German Socio-Economic Panel and the British Household Panel will elaborate on the main patterns of in-work poverty and the triggers of in-work poverty entry. The main triggers for in-work poverty entry are sought in transitions from unemployment or inactivity, labour market transitions (into part-time, self-employed or temporary work as well as occupational downgrading) and changes in the household employment context.
The findings suggest that labour market entrants suffer disproportionately from the risk of entering in-work poverty in Germany. In Great Britain, employment exits of the partner is a stronger in-work poverty trigger and labour market transitions such as downward mobility and job change occur more frequently.