The Unassuming Economist

A new IMF report says that “Inequality and poverty in Europe during the financial crisis has received widespread attention, but somewhat less discussed has been the social impact of the crisis across generations. In a context where Portugal’s convergence toward lower European poverty and inequality standards has stalled over the last five years, the youth (aged 15-24 years) were especially affected by the downturn and adverse labor market developments. Their income has not yet fully recovered to pre-crisis levels, and their risk of poverty is the highest of all age groups. The youth are disproportionally unemployed or in precarious forms of employment in the context of strong market duality. The social security system has better protected the elderly from the impact of the crisis, with the youth less well covered against unemployment and poverty risks. Going forward, policies should focus on further reducing labor market duality to improve job prospects for young adults, and rebalancing fiscal redistribution to combat poverty in young adults.”