Poverty risk of the unemployed in six European countries: why is it higher in some countries than in others?

Abstract

In all European countries unemployed persons face a high risk of relative poverty, but poverty rates vary greatly among EU countries. We analyse to what extent these differences could be explained by a different composition of the unemployed or by differences in the national income distribution functions. Our results indicate that the effects of individual characteristics on the poverty risk are roughly comparable between countries, but the composition of the unemployed is very different, which explains on average half of the cross-country differences in poverty rates.