Thursday 4 June 4:40 p.m. - 5:40 p.m. (Europe/Malta)
Abstract
This study analyses the in-work at-risk-of-poverty rate across EU countries over the period 2013–2024, using macro panel data from the Eurostat database. This rate measures the percentage of employed individuals aged 18–64 who, despite having a job, live in households with an equivalized disposable income below the poverty threshold. This analysis allows for a comparative cross-country perspective. To address cross-sectional dependence and the presence of unobserved common factors, we propose the use of the Common Correlated Effects pooled (CCE pooled) estimator, proposed by Pesaran (2006). Such unobserved factors may induce correlation across residuals, rendering conventional panel estimators inconsistent. By accounting for these issues, the CCE pooled approach provides robust estimates of the determinants of in-work poverty, while controlling for heterogeneity across countries and over time. The results contribute to a better understanding of the dynamics of in-work poverty in EU, highlighting structural differences among countries and offering insights relevant for labor market and social policy design.
