Statistics in Focus: Population and social conditions. LOW INCOME AND LOW PAY IN A HOUSEHOLD CONTEXT (EU-12).

Abstract

This "Statistics in Focus" deals with the issue of low income and low pay in 1993 in a household context. It draws on European Community Household Panel data collected in 1994 in the then 12 European Union Member States (EU-12). In the European Union of the Twelve, 10% of the population living in prime-age households (i.e. households where the reference person is 18 to 54 years old) are members of workless households. Although the risk of low income is highest for members of workless households, the presence of some work in the household is not always sufficient to escape low income. The position of individuals in the income distribution depends largely on the employment profile of their households. The presence of at least one person in full-time employment throughout the year means in most cases that a household has an income in the upper quintiles of the income distribution. Not surprisingly, full-time employees in low-income households are often in low-paid jobs. However, the majority of low-paid full-time employees do not live in low-income households. At EU-12 level, some 60% live in households that have incomes in the upper quintiles of the income distribution.