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A waitress is carrying plates with food through the outdoor area of a restaurant.

In-work poverty

At the end of the 1990s, the expansion of the low-wage sector was expected to reduce the high levels of unemployment. A person is considered to be on a low wage if they earn less than two-thirds of the median wage of all full-time employees. In such cases, the remuneration does not provide an adequate livelihood despite the person being in full-time employment. Who is particularly affected by low wages? In which sectors are they most prevalent? Does the low-wage sector offer an opportunity to enter the labour market, or is it a dead end? And how has it evolved since the introduction of the minimum wage? How has the risk of in-work poverty changed, and what factors play a role in this?

We have compiled a list of IAB publications and projects that help to answer these and other questions you may have about low wages and the risk of in-work poverty.

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