Analysing Intergenerational Influences on Income Poverty and Economic Vulnerability with EU-SILC

Abstract

The EU-SILC 2005 wave includes a special module on inter-generational transmission of poverty. In addition to the standard data relating to income and material deprivation, the information relating to parental background and childhood circumstances was collected for all household members or selected respondents aged over 24 and less than 66 at the end of the income reference period. In principle, the module provides an unprecedented opportunity to examine on a comparative European basis the relationship between current poverty and social exclusion outcomes and parental characteristics and childhood economic circumstances. In this paper we seek to exploit such potential. In pursuing this objective, it is necessary to address some of the limitations of the data. We do by restricting our attention to a set of countries where data issues seem less extreme. In addition we employ ‘dominance procedures in relation to parents’ education and social class to reduce the scale of the missing values problem. Finally, we compare findings from one dimensional and multidimensional approaches in order to provide an assessment of the extent to which our analysis provides a coherent account of the intergenerational transmission of disadvantage.Poverty, Intergenerational, EU-SILC