The in-work poverty in Macedonia: Deriving lessons for future policy interventions

Nikoloski, Dimitar and Angeleski, Marjan and Rocheska, Slavica (2018) The in-work poverty in Macedonia: Deriving lessons for future policy interventions. In: X International Balkan and Near Eastern Social Sciences Conference Series (IBANESS), October 27-28, 2018, Ohrid.

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The level of real wages in a given society is a key factor with far reaching consequences on the wellbeing and
living standard of its citizens. There is a broad consensus that the best means of reducing or avoiding poverty and social exclusion is employment. However, having a job may not always be of sufficient quality to lift out an employed person and his/her family from poverty. The presence of in-work poverty represents a crucial challenge and implies the need to
reconsider our traditional view of the relationship between employment and poverty. The working poor indicators need to combine activity characteristics which are individual and a measure of income computed at the household level under the assumption of income pooling. In this context, as ‘working poor’ are considered those individuals who work either full or part time and who live in households where the household income is below the poverty threshold. Generally, the in-work poverty is driven by a combination of employment characteristics, personal traits and household type. The aim of this
paper is by using data from the Survey on Income and Living Conditions is to assess the nature of in-work poverty in Macedonia as a precondition for designing appropriate policy measures that will target the employed population at risk of poverty. According to our analysis, the in-work poverty in Macedonia is mainly rooted in the low paid work of employed workers, while to some extent it is due to additional factors such as household characteristics and the limited role of social
benefits. As a consequence, we propose policy measures aiming to reduce the incidence of low pay as an effective way for combating the in-work poverty, as well as a broader arsenal of policy interventions that will improve the wellbeing of the most vulnerable labour market segments.

Item Type: Conference or Workshop Item (Paper)
Subjects: Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions: Faculty of Economics
Depositing User: Mr Dimitar Risteski
Date Deposited: 04 Dec 2019 09:50
Last Modified: 04 Dec 2019 09:50

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