Job precariousness and poverty dynamics among households with children

Abstract

In Spain, 70% of children in poverty live in households with one or more workers; equally, households with children make up the majority of households in in-work poverty (53%) despite representing only 27% of all households. However, in-work poverty and child poverty are often thought of as separate problems. Most analyses on in-work poverty in Spain use data from a single year and focus on working individuals. However, since households share needs and resources, understanding the factors that increase the risk of poverty requires studying households. In this work, carried out at the Demographic Studies Centre at the Autonomous University of Barcelona, we adopt a dynamic perspective to analyse the interrelationship between child and in-work poverty, and specifically the high in-work poverty rates in households with children and adolescents. Using longitudinal data from the Living Conditions Survey (2017-2020), we examine the role played by childbirth/adoption, the presence of children in the household and their age in the processes of impoverishment. We find that in 2020 only 4% of households entering in-work poverty experienced an increase in the number of children and adolescents in the household. In contrast, 37% of entrants experienced a decrease in income without decreasing the number of workers (for example, due to a temporary period of unemployment), and 29% a reduction in unemployment benefit income. Households with children tend to have greater difficulties in escaping poverty, which translates into longer periods in in-work poverty. We conclude that changes in employment status are more relevant than changes in household composition for understanding child and working poverty. Additionally, the role of risk factors such as temporary employment is compounded in households with children, further reducing their poverty exit rates. Reducing child poverty requires tackling in-work poverty and vice versa