While there is a growing awareness of the 're-emergence' of working poverty, this topic remains relatively under-researched. This article provides an encompassing review of the literature dealing with the situation in Europe, North America and the Antipodes, with a focus on the theoretical models found in this literature, the definitions used and the risk groups identified. The main conclusion is that most publications were not based on a specific theoretical model, which has led to a flurry of definitions; moreover, conclusions on certain risk groups are divergent. The end of the article focuses on what remains to be done, because there are good reasons to think that working poverty might become a more pressing problem in the near future, and social policy researchers will have to have good theoretical frameworks and robust evaluation strategies in the years to come.

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Subjective indicators are often criticized since they are thought to be particularly affected by the phenomenon of adaptive preferences and social comparison. For social policy purposes, processes of downward adaptation in disadvantaged individuals are of particular importance, i.e., it is supposed that such people compare themselves with others who are in the same precarious situation or even worse off and, as a result, lower their expectations and adapt their aspirations and preferences to their material and financial constraints. Based on the 2006-2010 waves of the Swiss Household Panel study, this contribution examines whether, and to what degree, indicators of material deprivation, subjective poverty and subjective well-being are affected by such downward adaptations. Our empirical analysis demonstrates that the bias caused by adaptation processes varies considerably among different measures and that, although subjective indicators are indeed often affected by this phenomenon, there are also robust measures, notably Townsend's deprivation measure, Halleröd's proportional deprivation index and the subjective wellbeing measure of general life satisfaction.

Many EU countries are faced with abysmal public debts and high unemployment, and may have to reduce their social expenditure and deregulate their labour market, which should lead to an increase in ‘working poverty’ (i.e., an increase in the number of working men and women who live in a low‐income household, or in a household that cannot afford certain goods and services considered essential for a decent life, respectively). However, working poverty remains an under‐analysed phenomenon in Europe. Moreover, the vast majority of existing definitions used in Europe are based on a relative income poverty line and the EU's official definition of ‘in‐work’, which raises concerns about the robustness of existing findings. This article first examines how the socioeconomic situation has evolved in seven EU Member States that have fared differently. In addition, the article examines whether the use of non‐monetary poverty indicators and of an encompassing definition of ‘working’ has an impact on the conclusions drawn. An attempt is made to identify the main macro‐level determinants of changes in ‘working poverty’ and to better understand their impact at the micro‐level.

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