Dansk Økonomi Efterår 2006 - De Økonomiske Råd

the dependent variables. The analysis reveals that the effectof parents’ earnings on the earnings of the offspring ismodest. However, the effect on the lowest part of the incomedistribution is a little higher than the effect on averageincome. The probability of the children having zero earningsis quite sensitive to parents’ earnings.The prevention of poverty should start in early childhood.An important factor is to give children and young peoplepersonal skills and education that will be relevant on thelabour market. Empirical findings support the theory that itis important to put in place pre-emptive measures aimed atsocially vulnerable children. However, no comprehensivesurvey exists of which measures are effective in improvingthe prospects of socially vulnerable children. Therefore, asystematic quantitative evaluation of measures used tosupport socially vulnerable children is needed.It is important that initiatives to improve qualifications forthe weakest group of children come into effect early andcontinue in the elementary school. The problems are concentratedaround young people leaving school withoutadequate qualifications to take a course of education atupper secondary and vocational training levels. The goalought to be that almost everybody should be able to completesuch a course of education.Besides initiatives aiming at preventing poverty, there aretwo ways of reducing poverty. One is to increase incomesupport to those who are below the poverty limit, while thesecond is to improve the probability of leaving poverty bybecoming self-supporting.Hardly any full-time workers are below the poverty line.Therefore it is important to create good employment possibilitiesfor those who have the greatest risk of ending up inpoverty. It is also important that there is a financial advantageto being employed. It is necessary that the level ofpublic income transfers is balanced against the level ofwages.332