In-work poverty, a complex and context-specific phenomenon

This thesis investigates how the relationship between work and poverty is structured within different contexts. The extent to which work ensures stable inclusion in society varies according to where people live, influenced by factors such as labour markets, welfare services, and living costs. The thesis consists of a collection of papers and draws on longitudinal and cross-sectional data of the survey European Union Statistics on Income and Living Conditions. It investigates the effect of the context considering three territorial levels: a cross-national level through a comparison of European countries; two subnational levels, namely, regions and degrees of urbanisation, in Italy. This research design is well-suited for identifying universal and context-specific aspects of the relationship between work and poverty. It provides valuable insights into appropriate measures and territorial levels for intervening to counteract in-work poverty. The thesis presents significant innovations by examining poverty at the subnational level, including subjective poverty and housing affordability issues, in addition to lacking income. Empirical results highlights common mechanisms, that hold across all contexts. Work intensity is effective in protecting against both income poverty and – to a lesser extent – subjective poverty. This is true whether it increases via increased quantity of work within the households (e.g., additional months worked) or the exit of dependent individuals. However, the research also identified the presence of relevant context-specific elements. In European countries with inefficient labour markets and weak welfare services, achieving high work intensity is challenging for many households. Additionally, in Italy, in regions with the same structural weaknesses, work provides less protection against objective and subjective poverty. Concerning only the housing dimension, the context is less decisive for the in-work poor – who are vulnerable everywhere – but it is more so for low-middle-income working households who are just above the poverty threshold.