{"id":11838,"date":"2026-01-22T21:04:32","date_gmt":"2026-01-22T20:04:32","guid":{"rendered":"https:\/\/www.rivistaeco.com\/?p=11838"},"modified":"2026-01-22T21:04:32","modified_gmt":"2026-01-22T20:04:32","slug":"work-does-not-save-us-from-poverty","status":"publish","type":"post","link":"https:\/\/www.rivistaeco.com\/en\/2026\/01\/22\/work-does-not-save-us-from-poverty\/","title":{"rendered":"Work Does Not Save Us from Poverty"},"content":{"rendered":"

Having a job is no longer enough to protect people from the risk of poverty. In 2024, 10.2% of Italian workers lived in households below the poverty line\u2014a figure higher than the European average and significantly above those of Germany and France. In southern Italy, poverty among households with an employed reference person reaches 18.4%, three times the level in the North. <\/em>Behind these figures lie well-known and interrelated factors: two decades of stagnant wages, fragmented careers, the growth of involuntary part-time work, and persistently low female employment. Public policy responses remain weak, and in-work poverty is difficult to combat because of the structural fragility of Italy\u2019s productive system and the growing weight of low value-added services. Yet the issue must be addressed, as the risk of a serious social divide is real.<\/em><\/p>\n

 <\/p>\n

For decades, poverty was seen as a condition linked to the absence of work. Having a job meant escaping deprivation, gaining access to regular income and social protection. This promise\u2014one of the pillars of social cohesion\u2014has now cracked. Increasingly, in Italy and elsewhere, people can be poor despite working.<\/p>\n

In-Work Poverty in Europe<\/strong>\u00a0<\/strong><\/h3>\n

According to Eurostat, the European Union\u2019s statistical office, in 2024, 10.2% of Italian workers were classified as poor\u2014a figure rising again from 2023 and above the European average of 8.2%. The gap with continental European countries is striking: the share of in-work poor stands at 2.8% in Finland, 6.5% in Germany, and 8.3% in France. Higher rates are found in Slovakia, Estonia, Greece, Romania, Spain, and Luxembourg.<\/p>\n

The Italian average conceals strong regional disparities. According to ISTAT, poverty among households with an employed reference person in the South (18.4%) is almost three times higher than in the North (6.8%).<\/p>\n

\"\"<\/p>\n

A Two-Dimensional Definition<\/strong><\/h3>\n

Who, exactly, is a working poor person? The European definition is based on two intertwined dimensions: the individual dimension, relating to earnings, contract stability, and work intensity; and the household dimension, depending on the number of earners and family composition.<\/p>\n

Under Eurostat\u2019s definition, a person is considered poor if they worked at least seven months in the year and live in a household whose equivalent disposable income\u2014adjusted for household composition\u2014is below 60% of the national median income (the midpoint of the income distribution).<\/p>\n

As with all measures of relative poverty, these estimates reflect income distribution. This helps explain, at least in part, the surprise of finding Luxembourg at the top of the ranking: a high median wage raises the poverty threshold, and in a more unequal society this implies a higher number of people classified as poor in relative terms.<\/p>\n

While Eurostat\u2019s definition allows for international comparability, it has limitations. First, it excludes those who work fewer than seven months, leaving out many precarious or seasonal workers\u2014precisely those most exposed to economic vulnerability.<\/p>\n

The indicator also assumes fair income sharing within households, an assumption often far from reality, especially in families with heavy care responsibilities or strong gender inequalities. It is therefore unsurprising that in Italy the statistical risk of in-work poverty is almost 50% higher for men than for women: although women generally work and earn less, they are often not the sole income earners, and when total household income is considered, they are less likely to fall below the poverty line. Men, by contrast, more often act as sole breadwinners and therefore face a higher risk.<\/p>\n

The Chain That Produces In-Work Poverty<\/strong><\/h3>\n

As highlighted in the Report of the Working Group on Measures to Combat In-Work Poverty in Italy<\/em>, which I coordinated in 2022 for the Ministry of Labor, in-work poverty does not stem from a single factor. It is the result of a chain of interconnected mechanisms made up of three links.<\/p>\n

The first link concerns individual labor income and depends on three variables: hourly pay, weekly hours, and the number of weeks or months worked per year. The second link relates to household market income (before taxes and benefits), which depends on how many family members work\u2014making Italy\u2019s still-low female employment rate particularly important\u2014on the presence of other income sources (such as rents or self-employment), and on household composition, with large families far more exposed than single-person households. The third link concerns disposable household income, shaped by public redistribution through taxes and cash transfers.<\/p>\n

Each step in the chain can amplify or mitigate the effects of the previous one: where individual wages are low, single-earner households are more vulnerable, and weak redistribution further increases poverty risk.<\/p>\n

The Weight of Involuntary Part-Time Work<\/strong><\/h3>\n

Three major trends lie behind the rise in in-work poverty over recent decades. The first is weak wage growth, particularly pronounced in Italy (see the first issue of eco<\/em> and Bruno Anastasia\u2019s article in this issue). The second is career fragmentation: the spread of fixed-term and atypical contracts, though declining in recent years, still affects estimates. The third, less discussed but perhaps most important, is involuntary part-time work, which now affects more than half of the 2.5 million part-time workers.<\/p>\n

Upstream lie structurally low female participation and the weakness of the productive system, marked by modest growth in high value-added sectors and a gradual shift toward low-productivity services. In these contexts, work tends to fragment into micro-activities and discontinuous schedules, with limited prospects for advancement.<\/p>\n

Five Measures to Contain the Phenomenon<\/strong><\/h3>\n

Public policies in Italy have mainly addressed the issue indirectly. Hiring incentives and measures supporting female and youth employment have sought to increase work intensity and gross household income (the second link). Tax wedge reductions, \u20ac80\u2013\u20ac100 bonuses, and contribution cuts have affected net income (the third link). Debates on collective bargaining and the minimum wage, including the recently approved enabling law, concern the first link.<\/p>\n

However, partly because of high inflation, the overall effect for many workers has been neutral\u2014or even negative. The Citizens\u2019 Income scheme, though important in reducing absolute poverty, had little impact on working poor people, as it was designed for the unemployed rather than the underemployed or underpaid.<\/p>\n

The 2022 Ministry report proposed five actions that remain relevant and could help contain the phenomenon across the country, North and South alike, though they would not eradicate it entirely.<\/p>\n

First, adequate minimum wages should be guaranteed, either by extending collective agreements erga omnes or by introducing a statutory minimum wage, possibly on a trial basis in critical sectors.<\/p>\n

Second, compliance with these minimums must be ensured through stronger inspections, especially documentary checks, and better use of administrative data.<\/p>\n

Third, redistribution must be strengthened. In Italy, only half of working poor people receive income support, compared with an EU average of 65%. There is no in-work benefit for low-paid workers. Such a tool\u2014common in France, the Netherlands, Germany, and Nordic countries\u2014would supplement low incomes and encourage regular work, while rationalizing tax credits, partial unemployment benefits (NASpI), and minimum income schemes. However, it requires effective wage floors to avoid becoming an indirect subsidy to low-productivity firms.<\/p>\n

Two further elements complete the picture. The first concerns transparency and awareness: information on contracts, rights, and benefits must be made more accessible, while rewarding firms that uphold fair wage standards. One example is the living wage debate in Milan, based on voluntary corporate commitments.<\/p>\n

The second concerns measurement. The European indicator should be revised to include those working fewer than seven months and complemented with individual income measures, to better assess whether work guarantees decent living conditions.<\/p>\n

No single measure will reverse the trend. Labor market reforms alone are insufficient. Structural weaknesses\u2014low skills, weak investment, and poor matching of labor supply and demand\u2014remain major constraints, as highlighted in the National Productivity Committee\u2019s recent report and summarized in eco<\/em>\u2019s October 2025 issue.<\/p>\n

Conclusion<\/strong><\/h3>\n

In-work poverty is not merely a matter of paychecks. It is an issue of economic citizenship, effective access to rights, and the resilience of the social contract. In a country where work no longer guarantees a decent life, there is a real risk of a silent divide between those with adequate incomes and those trapped in low-paid, short-hour jobs, with lasting consequences for pensions and social mobility.<\/p>\n

 <\/p>\n

Andrea Garnero is a labor economist and co-author, with journalist Roberto Mania, of La questione salariale, published by Egea. From 2017 to 2021, he was a member of the French government\u2019s expert group on the minimum wage. In 2021\u20132022, he chaired the working group on in-work poverty at the Italian Ministry of Labor.<\/em><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

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