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The Housing Dimension of Welfare Reform - the ICCR

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3. <strong>Housing</strong> related characteristics (legal status, category, condition,<br />

burden <strong>of</strong> housing cost)<br />

4. Non–monetary deprivation (basic amenities, lifestyle, housing<br />

facilities and deterioration)<br />

<strong>The</strong> final model shows that <strong>the</strong> age <strong>of</strong> <strong>the</strong> main earner is <strong>of</strong> crucial<br />

importance, even when controlling for a number <strong>of</strong> additional socioeconomic<br />

characteristics. <strong>The</strong> poverty risk is highest among young adults<br />

who have an entry risk <strong>of</strong> more than four times that <strong>of</strong> persons <strong>of</strong><br />

retirement age.<br />

Of <strong>the</strong> above sets <strong>of</strong> variables <strong>the</strong> socio-economic characteristics <strong>of</strong> <strong>the</strong><br />

household and, particularly, <strong>the</strong> latter’s work attachment, are <strong>the</strong> most<br />

relevant with regard to entry into poverty. Individuals who live in<br />

persistently economically inactive households have 9.5 times <strong>the</strong> risk to<br />

fall into poverty as compared to persons living in working households.<br />

Persons living in households which slide into unemployment are five<br />

times more likely to enter into poverty than persons in working<br />

households. Becoming unemployed implies an even higher entry risk<br />

than when a household is persistently unemployed.<br />

<strong>The</strong> highest odds among household types are found for persons who live<br />

in a two-parent family whose risk to enter poverty is two times higher<br />

than for single persons. A somewhat unexpected finding is that in <strong>the</strong><br />

multivariate analysis single parents do not show a higher risk to enter<br />

poverty than singles or couples without children. This suggests that<br />

single parenthood is not in itself <strong>the</strong> main determinant <strong>of</strong> falling into<br />

poverty. It is ra<strong>the</strong>r <strong>the</strong> specific circumstances associated with single<br />

parenthood, such as <strong>the</strong> absence <strong>of</strong> employment opportunities or public<br />

or private transfer receipts, that make one-parent families more<br />

vulnerable to poverty than o<strong>the</strong>r groups. This might be easier to<br />

understand if distinction is drawn between one- and two-earner<br />

households. <strong>The</strong> risk for poverty appears to be highest when <strong>the</strong>re is only<br />

one (potential) in a two-parent household, i.e. when one <strong>of</strong> <strong>the</strong> two<br />

parents is inactive.<br />

A low educational attainment <strong>of</strong> all household members is a very<br />

distinctive characteristic that has strong influence on <strong>the</strong> entry into<br />

poverty. When <strong>the</strong> level <strong>of</strong> educational attainment is low or reduced due<br />

to <strong>the</strong> leave <strong>of</strong> at least one higher educated household member <strong>the</strong> entry<br />

risk is 1.7 – 2.1 times higher than when at least one household member<br />

has a middle or higher educational attainment.<br />

When looking at <strong>the</strong> housing dimension <strong>of</strong> entry rates we find that <strong>the</strong><br />

odds for individuals in private rented housing are most favourable. <strong>The</strong><br />

risk for owners is 40 per cent higher and that <strong>of</strong> persons in social housing<br />

EUROHOME-IMPACT FINAL REPORT 39

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