Arbeitspapier

Income Support Policies for the Working Poor

This paper asks what governments in the EU Member States and some US states are doing to support workers on low wages. Using model family simulations, we assess the policy measures currently in place to guarantee an adequate disposable income to working families, taking into account minimum wages, social security contributions, taxes and cash benefits. We show that despite increased efforts over the past decade, disposable incomes of certain types of minimum wage workers still fall well below the EU at-risk-of-poverty thresholds in many countries. Single earners with dependent children are especially at risk of poverty. We discuss the options for making progress.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 10665

Classification
Wirtschaft
Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
Labor Standards: Public Policy
State and Local Government: Health; Education; Welfare; Public Pensions
Subject
direct income support
minimum wages
in-work benefits
in-work poverty

Event
Geistige Schöpfung
(who)
Marchal, Sarah
Marx, Ive
Verbist, Gerlinde
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2017

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Marchal, Sarah
  • Marx, Ive
  • Verbist, Gerlinde
  • Institute of Labor Economics (IZA)

Time of origin

  • 2017

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