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Working poor


Originally an American concept, the 'working poor' refers to those who are working but remain below the poverty threshold. Despite an increasing level of attention both at national and European level there is as yet, however, no generally accepted definition of the 'working poor'.

Employment is often claimed to be the best protection against poverty. However, data at EU level suggest that 17% of the self-employed and 6% of employees are classified as poor (earning less than 60% of the median equivalised household income).

The problem of working poverty has become more pressing in a European Union with 25 Member States, given the higher incidence of the phenomenon in the new Member States.

Based primarily on a comprehensive literature review (2004), the Foundation report 'Working poor in the European Union' covers issues such as definitions of the working poor, the incidence and characteristics of the working poor and related subgroups, as well as examining some of the welfare state arrangements designed to tackle the problem and the link between employment and social protection policies and their respective roles.

Page last updated: 17 December, 2007