This paper puts emphasis on the earnings development at the lower end of the earnings distribution and its development over time. The main objective is to provide more insight into the mechanism of impoverishment and marginalisation of various groups of people as well as the dynamics.

Family policy is getting increasing public policy attention in the EU as a result of population ageing and the challenge of the sustainability of economic growth. It is being recognised that a sustainable rise in the fertility rate is needed in order to put a break on population ageing....