ABSTRACT

This chapter is about the working poor in rich economies. The chapter discusses the debates that have given rise to an increased awareness of this issue, both in the academic literature as well as in the wide societal debate. It starts with a discussion of definitional and measurement issues. It then goes on to discuss levels and trends across rich countries with a principal focus on Europe. An extensive section deals with the drivers of in-work poverty and the cross-country differences in this respect. It argues different institutional and policy constellations across countries are associated with varieties of in-work poverty. The chapter concludes with some policy considerations.