The Consequences of the Financial Crisis for Children and Old Age People in the European Union. Which Age Group Has Been Most Affected with Respect to Poverty and Material Deprivation?

Christos FRANGOS and Ioannis DIONYSSOPOULOS

Abstract:

The effects of the financial crisis 2008-2017 in the European and world economy were the austerity and the increase of poverty for the population of countries in the cyclone of recession. In this paper we investigate the impact of the Great Recession of 2008-2017 on child and pensioner poverty across the EU-27 , including Switzerland, Ireland and Norway and compare the risk -of-poverty rate  for  children with the risk-of-poverty rate for elderly people.The findings of the paper are the following: a. The at-risk-of poverty rate for children is greater than the one for pensioners.  b.  There is a correlation between the working-age unemployment and child poverty. c. Social protection spending (social transfers and unemployment benefits) are an effective relief measure for poor children and elderly people. d. There is a statistically significant difference in the at-risk-of poverty for a single person before and after Social Transfers. The paper recommends that social spending should be directed more towards children than pensioners ,in line with the European Commission’s goal : Investing in children.(EUROSTAT,2018),(EU,SILC,2016).