Income Vulnerability in Europe

The aim of this chapter is to describe income vulnerability in EU15 Europe and to analyze if it varies accross different macro-regional and national contexts. Main poverty and vulnerability indicators are identified and computed by means of European Community Household Panel data (ECHP 1994-2001). Pervasive presence of longitudinal (both transient and permanent) poverty is confirmed and it shows a strong regional distribution, rather than being dependent on welfare regimes. Moreover the area of vulnerability is almost double with respect to cross-sectional standard poverty diffusion measures. Main causes for vulnerability are moreover investigated and they show to be mainly dependent on the absence in the family of at least two full time permanent jobs. Lack of income security, then, interacts with all the other socio-demographic risks in producing an higher probability to fall in poverty.