Chapter 4: Income Poverty Among the Unemployed
As discussed in Chapter 1, an important issue for many comparative approaches to welfare states is the ﬁnancial consequences of unemployment. Esping-Andersen (1990) focuses on decommodiﬁcation and how welfare states replace income from the market, covering the contingency of market failure. Gallie and Paugam (2000) refer speciﬁcally to how they expect different types of welfare state to be associated with different levels of poverty among the unemployed. Schmid and Reissert (1996) predict that the welfareoriented systems and insurance-based systems differ in the extent to which they protect the income of the unemployed. The gender typologies discussed are primarily concerned with how welfare states treat men and women differently. One key concern, we argue, is (unemployed) women’s access to an independent income. There is also an emphasis in these typologies on which family or household types are favoured, ﬁnancially or otherwise, by different types of welfare system (Lewis and Ostner 1994; Daly 1996, 2000). In this chapter we address these issues by comparing ﬁnancial deprivation among individual unemployed people in Britain and Germany. While there are many consequences of unemployment, the ﬁnancial consequences are those most directly addressed by cash transfers. This is not to say that other effects of unemployment are not important – unemployment can affect individuals in ways that are non-ﬁnancial, and a full treatment would look at its impact on psychological distress and on social networks, families and close relationships. Cross-sectional comparative research on life satisfaction suggests that in both Britain and Germany, life satisfaction...
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