How Participation in Labour Market Affects Youth Poverty and Social Exclusion? A Comparison of EU Countries

Abstract

The article discusses how participation in the labour market affects youth poverty and social exclusion. It aims to compare and classify countries according to population at risk of poverty or social exclusion by the age indicator (between 18-24 and 25-49 years old). A hypothetical statement is made that transition to the labour market should decrease the number of youth at risk of poverty and social exclusion. The empirical analysis draws on the 2009 data of the European Union Statistics on Income and Living Conditions (EU SILC)[1]. For further analysis an indicator was used, that is reflecting changes of the poverty and social exclusion risk by age, with transition from the younger18-24 to the older age 25-49 cohort. Cluster analysis using Ward method and Euclidean distance square was carried out. The analysis has indicated that according the further mentioned indicators very contrasting types of the countries exist. In a number of countries there are no significant changes with the transition from the younger (18-24) to the older age (25-49) concerning the poverty or social exclusion by the age indicator. The research results are to some extent unexpected because at the bottom of the rating together with older new member states (Romania, Bulgaria), the United Kingdom, Germany, Austria and Belgium form one cluster.

http://dx.doi.org/10.5755/j01.ss.73.3.787

[1]http://epp.eurostat.ec.europa.eu/portal/page/portal/income_social_inclusion_living_conditions/data/database