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"POVERTY RISK"
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Child Poverty as a Determinant of Life Outcomes: Evidence from Nationwide Surveys in Japan
We attempt to examine the extent to which poverty in childhood adversely affects success in adulthood, using micro data from nationwide surveys in Japan and taking into account the recursive structure of life outcomes. We use retrospective assessments of income class at the age of 15, because longitudinal data on household income are not available. After controlling for its endogeneity, we confirm that children from poor families tend to have lower educational attainment, face higher poverty risks, and assess themselves as being less happy and as suffering from poorer health.
Journal Article
Exploration of poverty and social exclusion of Slovak population via contrast analysis associated with logit models
The aim of the paper is to assess the impact of socio-economic and socio-demographic factors on the risk of poverty or social exclusion. The paper focuses on the analysis of the probability of social exclusion of the Slovak population from 4 perspectives, from being at risk of poverty or social exclusion, at risk of poverty, severely materially deprived, and living in a (quasi-)jobless household. The least-square means analysis and contrast analysis linked to logit models were used to identify risk groups, and to estimate the social exclusion probabilities. Based on the EU-SILC 2020 database, unemployed persons with low education and persons from single-parent and multi-child households had the greatest risk of social exclusion in Slovakia. Under ceteris paribus conditions, the risk decreased with increasing age and improving health status. The riskiest marital status was divorced. Analyses revealed regional disparities from the point of view of all 4 perspectives, with people living in South-Center and Eastern Slovakia and people living in sparsely and moderately populated areas having the greatest risk. Since economic activity status, household type, and educational attainment level showed as the most relevant factors, the article pays special attention to the assessment of the mutual influence of these factors. Although the pattern of the risk of social exclusion of persons broken down by household type and education for the unemployed and employed is similar, the riskiness of the most vulnerable groups of people is more pronounced for employed persons.
Journal Article
Addressing foundational issues for effective flood risk governance in Pakistan
Pakistan established a multi-tiered disaster management framework in 2007, yet in 2010 and 2022, it experienced devastating floods. The widespread impact and the similarity of the damage in the two disasters point to systemic issues that contradict disaster risk reduction (DRR) policy. The study utilises an embedded exploratory case study design and deductive thematic analysis to elaborate and analyse two core underlying risk drivers that function as foundational barriers to effective flood risk governance in Pakistan: weak implementation of flood risk management policy at the district level; and the socioeconomic challenge of poverty-induced vulnerability to flood risk. The findings of the paper underscore the need for a systems approach to integrated disaster management to holistically address the interdisciplinary and cross-sectoral character of flood disasters. A primary recommendation is increased legislative and resource support of District Disaster Management Authorities, which function in a local government system that is subject to frequent political transformations. To address the disaster risk-poverty nexus, the combined implementation of DRR and poverty alleviation programmes is recommended. The study has practical utility as it focuses on using existing local structures to improve the disaster risk management (DRM) capacity of both the state and citizens.
Journal Article
Financial inclusion and social outcomes in the European Union: Evidence from time-series analysis
Type of the article: Research Article AbstractFinancial inclusion has become increasingly central to the European Union’s social policy agenda amid digital transformation, recurrent economic shocks, and persistent poverty and inequality concerns. This study aims to assess the impact of financial inclusion on poverty risk and income inequality in the European Union, with particular attention to non-linear and long-run effects. The analysis uses annual aggregate EU-level data for 2004–2023. It applies time-series econometric methods, including correlation analysis, unit root and Granger causality tests, linear and quadratic regressions, and Error-Correction Models. The results indicate that financial inclusion does not exert a uniform direct linear effect on social outcomes. Correlation analysis shows a strong association between digital financial use and income inequality (e.g., card transactions and the Gini coefficient: r = −0.69; internet banking use and the Gini coefficient: r = −0.63), while correlations with poverty risk remain weak. Regression results confirm that most financial inclusion indicators have no statistically significant linear effect on poverty risk. However, a significant non-linear (inverted U-shaped) relationship is identified between card payment transactions and poverty risk, indicating that poverty risk declines once digital payment usage exceeds a threshold. In contrast, income inequality is significantly and negatively associated with traditional financial access, as increases in bank branch density per 100,000 inhabitants reduce the Gini coefficient in both the short and long run. Overall, the findings show that the social effects of financial inclusion in the EU are outcome-specific and depend on the form and intensity of inclusion rather than access alone.
Journal Article
Vulnerability and Poverty Risk Under Drought and COVID-19 in the American Southwest: A Reexamination of SDG1
The first global goal of the 2030 Sustainable Development Agenda (SDG 1) calls for addressing poverty as a condition produced through social vulnerability and environmental risk. This paper examines the relationship between vulnerability and poverty during concurrent drought and pandemic hazards in 2021 in the American Southwest, a context less studied in sustainability research. Drawing on disaster scholarship, we conceptualize the risk of poverty as the interaction of hazard exposure and social vulnerability. We construct a county-level dataset integrating environmental, epidemiological, and social indicators across Arizona, California, Colorado, Nevada, New Mexico, and Utah, identifying income inequality and residential segregation as key dimensions of vulnerability. Using child poverty as a measurement lens, we apply spatial mapping alongside Relative and Attributable Risk metrics to assess how drought intensity, pandemic burden, and structural vulnerability contributed to spatially uneven poverty outcomes under dual hazards. Results indicate that drought had a stronger effect than COVID-19, yet pre-existing vulnerabilities were more consequential, with income inequality outweighing segregation, suggesting that hazards are most damaging where social inequalities limit resilience. Interpreting the results through the Capability Approach, we posit that sustainable poverty reduction requires not just income support and hazard mitigation, but expansion of instrumental economic, social, and political freedoms that enhance individuals’ capabilities to navigate risk and pursue long-term well-being.
Journal Article
Energy Poverty—Do Energy Companies Care? Study Results from European Energy Companies
Energy poverty is one of the most critical social challenges in the debate about energy transformation. Reducing the risk of this challenge and mitigating the effects are at the heart of public policies. However, not only the government sector can support people who experience or are at risk of energy poverty. The business sector, especially energy companies, which are the main actors in predefining energy systems in individual countries, can actively participate in this process, among others, through socially responsible activities. The article aims to examine to what extent the problem of energy poverty is an element of social responsibility projects undertaken by energy companies. In addition, it was examined to what extent national climate policies address this issue. The study was conducted using content analysis. The results indicate energy companies’ weak interest and engagement in the energy poverty problem. They treat it very peripherally and do not include material topics on the list. The article ends with a set of conclusions for business sector representatives to help develop projects supporting energy poverty combat.
Journal Article
Investigating the effectiveness of livelihood capital in reducing re-poverty risk: an empirical analysis of policy withdrawal and income structures in rural China
In the context of China’s comprehensive poverty alleviation efforts, this study explores the differences in the re-poverty risk between households that have been lifted out of poverty before and after policy withdrawal, as well as the sensitivity of different family types to their livelihood capital. The study used data from 45,141 out-of-poverty households in Yucheng County, Henan Province, from 2016 to 2020, and combined the poverty vulnerability theory and short-fall risk method to evaluate the re-poverty risk. The Tobit model was used to explore the influence of livelihood capital on the re-poverty risk. The study found that the overall re-poverty risk is 1.13%, which increases to 18.09% after direct poverty alleviation policy is withdrawn. The risk of working families is significantly lower than farming families. All kinds of livelihood capital significantly reduce the re-poverty risk, with natural capital playing the most significant role. For different family types, the marginal contribution of financial capital to reducing the re-poverty risk is relatively larger in working households, while that of natural capital is larger in farming households. Specifically, labor capacity, arable land area, local leaders, and loans have a more significant inhibitory effect on the re-poverty risk. These findings provide valuable insights for formulating policies related to increasing household income and preventing the occurrence of re-poverty.
Journal Article
A Deep Dive into Institutional and Economic Influences on Poverty in Europe
This study analyzed the evolution of the poverty rate between 2004 and 2023 in 29 European countries, using two categories of variables: institutional variables (Corruption Control Index and Rule of Law Index) and economic variables (unemployment rate, shadow economy, government expenditures on social protection and the Gini index). The methodology adopted included dynamic panel econometric models, applying a technique which involves the elimination of individual effects by a primary differencing of the variables and the use of the generalized method of moments (GMM) to evaluate the estimators. This methodology eliminates endogeneity caused by including the dependent variable with lag among the explanatory variables in the model. The results showed a strong negative correlation between the poverty rate and institutional variables, suggesting that improvements in governance and access to education and health resources are essential for poverty reduction. The shadow economy has also been identified as a poverty buffer, providing support in the absence of formal employment opportunities. The short-term impact of government expenditures on social protection was not significant, indicating the need for further analysis to better understand these dynamics. This research can make a significant contribution to the design of more effective public policies aimed at reducing shocks, reducing inequality and promoting sustainable economic growth.
Journal Article
WELFARE REGIMES OF EUROPEAN COUNTRIES AND THEIR DEVELOPMENT IN THE CONTEXT OF MEMBERSHIP IN THE EUROPEAN UNION
Welfare regimes represent potential approaches to the implementation of redistributive policies worldwide. In European countries, several significant regimes have been identified, including the Conservative, Southern, Social Democratic, Liberal model, the Post-Communist European model, and the Model of the Former USSR. The present study focused on identifying the welfare regimes of EU members and candidate countries and examining whether shifts between these regimes occur over time. The k-means method was employed, generating a different number of clusters for two observed periods: 2013 and 2022 on the sample of 27 member and 4 candidate countries and 2023 on the sample of 27 member countries of EU. The input variables consisted of redistributive indicators focusing on income inequality and the risk of poverty. The analysis results confirmed that countries transitioned between regimes in all observed periods. In the mixed group of member and candidate countries, the number of clusters decreased from five to two. For member countries in 2023, the number of clusters was three, mainly due to the worsening risk of poverty in some countries. Notably, none of the clusters represented a pure form of the originally defined welfare regimes. A significant finding of the study was that all observed EU candidate countries have shifted towards the redistributive policies of EU member states. This shift was noted towards regimes of geographically proximate countries. Within the member countries, however, the adopted measures have also lead to the negative phenomenon of mutual distancing of social regimes.
Journal Article