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How Low-Paid Employees Avoid Poverty: An Analysis by Family Type and Household Structure

Published online by Cambridge University Press:  26 June 2006

KAREN GARDINER
Affiliation:
Centre for the Analysis of Social Policy (CASP), Department of Social & Policy Sciences, University of Bath, Bath BA2 7AY email: K.S.Gardiner@bath.ac.uk
JANE MILLAR
Affiliation:
Centre for the Analysis of Social Policy (CASP), Department of Social & Policy Sciences, University of Bath, Bath BA2 7AY email: j.i.millar@bath.ac.uk

Abstract

The risk of poverty is very unevenly distributed in society. Some groups – unemployed people, lone parents, large families, people with disabilities, and some ethnic groups – have much higher poverty rates than average. Some events – losing a job, marital breakdown, having children – also put people at high risk of poverty. But being in a high-risk group does not necessarily mean you will be poor, nor does experiencing an event with a high poverty risk attached to it. Some people avoid poverty, despite being in high-risk groups or facing high-risk events. This article focuses on one such group – low-paid workers – and explores whether and how people in low-paid jobs are able to avoid poverty. We consider three main options – own wages and in particular working long hours, living with other people and sharing income, and state transfers through the tax and benefit system – and compare these across different family and household types. The results highlight the importance of household living arrangements in protecting low-waged individuals against poverty.

Type
Article
Copyright
© 2006 Cambridge University Press

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