Material deprivation and employment status in post-transition: Evidence from North Macedonia

Abstract

Poverty and social exclusion are often associated with unemployment, but being employed is not always sufficient to provide decent living conditions for workers and their families. In this context, the aim of this article, drawing on SILC micro data, is to assess the underlying causes of severe material deprivation in North Macedonia from the point of view of employment status, particularly the differences between employed and unemployed workers. The results show that employed workers face a much greater risk of severe material deprivation if they are positioned in the so-called secondary labour market; while the unemployed with low capital accumulation and those living in households with low work intensity face the highest risks of all. North Macedonia’s adjustment mechanisms do help cushion the consequences, but the article concludes with several policy recommendations for additional action to reduce severe material deprivation covering: education and training; active labour market policies; unionisation and collective bargaining; wage subsidies and taxation; and a statutory minimum wage.