Comparing Poverty Indicators in an Enlarged European Union

In this article, we explore the extent to which a consideration of welfare regime and socioeconomic differences in poverty levels and patterns can assist us in making an informed assessment of alternative poverty indicators. Poverty in the EU is normally defined in terms of income thresholds at the level of each member state. However, with the enlargement of the EU, such measures have come in for increasing criticism. One set of reservation relates to the limitations imposed by an entirely national frame of reference. An alternative critique focuses on the fact that low income is an unreliable indicator of poverty. In this article, we seek to explore the strength of both arguments by comparing the outcomes associated with ‘at risk of poverty’ and consistent poverty at both national and EU levels. Developing an appropriate assessment of poverty levels in the enlarged EU, particularly in periods of rapid change, is likely to require that we make use of a number of indicators none of which capture the full complexity of cross-national poverty outcomes. However, our analysis suggests that if a choice is to be made between the available indicators, the ‘mixed consistent poverty’ indicator developed in this study is best suited to achieving the stated EU objective of assessing the scale of exclusion from minimally acceptable standards of living in individual countries while also measuring the extent to which the whole population of Europe is sharing in the benefits of high average prosperity.

Welfare regimes and household income packaging in the European Union

This paper uses harmonized data for the member states of the European Union to analyse household income packaging from a 'welfare regimes' perspective. Using data from the third wave of the ECHP, it looks at how the role of welfare transfers in the income package varies across countries and welfare regimes, and assesses whether this is consistent with the predictions of welfare regime theory, having first elaborated some specific hypotheses in that regard. It finds that when one focuses on averages across countries categorized into regimes, many of these hypotheses about the role of transfers are in broad terms borne out by the evidence. However, when one focuses on individual countries rather than regime averages the picture is a good deal more complex and consistency with the range of hypotheses more limited. It is essential that this variation across countries is taken into account in interpreting and using welfare regime theory and typologies.

Multiple deprivation and persistent poverty in the European Union

The literature on Social exclusion has focused attention on the processes leading to exposure to multiple disadvantage. Despite the influence this perspective has had on both academic and policy discussions, conceptual analysis has remained imprecise and empirical evidence modest. We have made use of the European Community Household Panel (ECHP) in order to examine the extent to which persistent income poverty results in multiple deprivation. Our analysis shows that only a modest proportion of the persistently poor can he characterized as being exposed to such deprivation. While persistent poverty and multiple deprivation combine to produce extremely high levels of economic strain, there is no evidence that they interact in a significant fashion. We argue that understanding deprivation is not facilitated by focusing on a cleavage between a multiply deprived minority and a comfortable majority, and we consider the policy implications of this argument.

Explaining levels of deprivation in the European Union

In this paper we seek to explain variations in levels of deprivation between EU countries. The starting-point of our analysis is the finding that the relationship between income and life-style deprivation varies across countries. Given our understanding of the manner in which the income-deprivation mismatch may arise from the limitations of current income as a measure of command over resources, the pattern of variation seems to be consistent with our expectations of the variable degree to which welfare-state regimes achieve 'decommodification' and smooth income flows. This line of reasoning suggests that cross-national differences in deprivation might, in significant part, be due not only to variation in household and individual characteristics that are associated with disadvantage but also to the differential impact of such variables across countries and indeed welfare regimes. To test this hypothesis, we have taken advantage of the ECHP (European Community Household Panel) comparative data set in order to pursue a strategy of substituting variable names for country/welfare regime names. We operated with two broad categories of variables, tapping, respectively, needs and resources. Although both sets of factors contribute independently to our ability to predict deprivation, it is the resource factors that are crucial in reducing country effects. The extent of cross-national heterogeneity depends on specifying the social class and situation in relation to long-term unemployment of the household reference person. The impact of the structural socio-economic variables that we label 'resource factors' varies across countries in a manner that is broadly consistent with welfare regime theory and is the key factor in explaining cross-country differences in deprivation. As a consequence, European homogeneity is a great deal more evident among the advantaged than the disadvantaged.