Children of the Recession - The impact of the economic crisis on child well-being in rich countries

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Children of the Recession - The impact of the economic crisis on child well-being in rich countries
UNICEF
Innocenti Report Card 12
Children in the Developed World

Children of the Recession
The impact of the economic crisis
on child well-being in rich countries
Innocenti Report Card 12 was written by Gonzalo Fanjul and edited by
Rick Boychuk.
The UNICEF Office of Research – Innocenti would like to acknowledge
the generous support for Innocenti Report Card 12 provided by the
Government of Italy.
Any part of this Innocenti Report Card may be freely reproduced using
the following reference:
UNICEF Office of Research (2014). ‘Children of the Recession: The
impact of the economic crisis on child well-being in rich countries’,
Innocenti Report Card 12, UNICEF Office of Research, Florence.

The Report Card series is designed to monitor and compare the
performance of economically advanced countries in securing the
rights and well-being of their children.

In 1988 the United Nations Children’s Fund (UNICEF) established a
research centre to support its advocacy for children worldwide and to
identify and research current and future areas of UNICEF’s work. The
prime objectives of the Office of Research are to improve international
understanding of issues relating to children’s rights, to help facilitate
full implementation of the Convention on the Rights of the Child
supporting advocacy worldwide. The Office aims to set out a
comprehensive framework for research and knowledge within the
organization, in support of its global programmes and policies. Through
strengthening research partnerships with leading academic institutions
and development networks in both the North and South, the Office
seeks to leverage additional resources and influence in support of
efforts towards policy reform in favour of children.
Publications produced by the Office are contributions to a global debate
on children and child rights issues and include a wide range of
opinions. For that reason, some publications may not necessarily reflect
UNICEF policies or approaches on some topics. The views expressed
are those of the authors and/or editors and are published in order to
stimulate further dialogue on issues affecting children.

Cover photo © Shutterstock
©United Nations Children’s Fund (UNICEF), September 2014
ISBN: 978 88 6522 030 6
ISSN: 1605-7317

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Piazza SS. Annunziata, 12
50122 Florence, Italy
Tel: +39 055 2033 0
Fax: +39 055 2033 220
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Innocenti Report Card 12
Children in the Developed World

Children of the
Recession
The impact of the economic crisis
on child well-being in rich countries
Children of the Recession
Executive summary

The data and observations in this                 below the poverty line) has            Universal aftershocks
Innocenti Report Card reveal a                    increased since 2008. In 18            Those countries most affected by
strong and multifaceted relationship              countries child poverty has fallen,    the recession have seen a steady
between the impact of the Great                   sometimes markedly.                    deterioration in the situation of
Recession on national economies
and a decline in children’s well-being
                                              »   The number of children entering        families, mostly from job losses,
                                                  into poverty during the recession      underemployment and cuts to
since 2008. Children are suffering                                                       public services. The median income
                                                  is 2.6 million higher than the
most, and will bear the                                                                  in households with children has
                                                  number that have been able to
consequences longest, in countries                                                       decreased in almost half of the
                                                  escape from it since 2008
where the recession has hit hardest.                                                     countries with available data. The
                                                  (6.6 million, as against 4 million).
For each country, the extent and                  Around 76.5 million children live      number of families stating that their
character of the crisis’s impact on               in poverty in the 41 most affluent     situation is ‘very difficult’ has risen
children has been shaped by the                   countries.                             in most countries. Having a child or
depth of the recession, pre-existing                                                     children in a household increases
economic conditions, the strength
                                              »   The recession has hit young            the risk of ‘working poverty’
                                                  people extremely hard, with the        (working, but below the poverty
of the social safety net and, most
                                                  NEET (not in education,                line) from 7 per cent to 11 per cent.
importantly, policy responses.
                                                  employment or training) rate           Since 2008, the percentage of
Remarkably, amid this
                                                  rising dramatically in many            households with children that are
unprecedented social crisis, many
                                                  countries. In the EU, 7.5 million      unable to afford meat, chicken or
countries have managed to limit –
                                                  young people (almost the               fish every second day has more
or even reduce – child poverty. It
                                                  population of Switzerland) were        than doubled in Estonia, Greece
was by no means inevitable, then,
                                                  NEET in 2013 – nearly a million        and Italy. Inability to cope with
that children would be the most
                                                  more than in 2008. The United          unexpected financial expenses has
enduring victims of the recession.
                                                  States and Australia have had the      increased by almost 60 per cent, on
The impact of the recession                       largest increases in the NEET rate     average, in households with
on children                                       across non-EU OECD countries.          children in the
This report offers multiple and                                                          12 most affected countries.
                                              »   Beyond income and employment
detailed perspectives on how the
                                                  levels, the recession has affected     Such changes have huge
recession has affected children in
                                                  a number of other important            consequences for the young.
the developed world. Official data
                                                  dimensions of people’s lives. From     Children feel anxious and stressed
have been used to rank the impact
                                                  2007 to 2013, feelings of insecurity   when parents endure
on children for countries in the
                                                  and stress rose in 18 of the 41        unemployment or income loss, and
European Union (EU) and/or the
                                                  countries, according to measurable     they suffer family downturns in
Organisation for Economic
                                                  self-perception indicators             subtle and painfully evident ways.
Co-operation and Development
                                                  (including access to food and          Housing, a large part of every
(OECD):
                                                  satisfaction with life). The           family’s budget, is one important
»   In 23 of 41 countries analysed,               recession’s impact on personal         indicator of poverty. Evictions,
    and in many of the highly                     experiences and perceptions is         mortgage defaults and foreclosures
    populated countries, child                    not yet over, and many indicators      all spiked in many countries
    poverty (children living in                   have even worsened in the most         affected by the recession. Such
    households whose income is                    recent years.                          constraints at home have been

2       I n n o c e n t i   R e p o r t   C a r d   1 2
E x e c u t i v e   s u m m a r y

compounded by weakened safety           increased more rapidly (or has            from financial markets forced many
nets in healthcare, education and       decreased more slowly) for the            governments to cut budgets. The
nutrition. Some 1.6 million more        young than for the elderly. In 24 of      Eurozone’s U-turn was particularly
children were living in severe          the 31 countries, poverty levels          abrupt, and there was a fall in social
material deprivation in 2012            have decreased among the elderly,         spending on children and families.
(11.1 million) than in 2008             while among children they have
                                                                                  Social protection responses have
(9.5 million) in 30 European            increased in 20 countries,
                                                                                  varied considerably in magnitude
countries. The longer these children    suggesting that safeguards for the
                                                                                  and makeup. When budget cuts
remain trapped in the cycle of          old have been more effective than
                                                                                  became unavoidable in certain
poverty, the harder it will be for      for the young.
                                                                                  countries, particularly in the
them to escape.
                                        A generation cast aside                   Mediterranean region, the shift from
Poorer children suffer most                                                       stimulus to consolidation increased
                                        Unemployment among adolescents
The poorest and most vulnerable         and young adults is a significant         inequality and contributed to
children have suffered                  long-term effect of the recession.        worsening living conditions for
disproportionately. Inequality has      Among those aged 15–24,                   children. During the second phase
increased in some countries where       unemployment has increased in 34          of the recession, the effectiveness
overall child poverty has decreased,    of the 41 countries analysed. Youth       of child poverty reduction efforts
suggesting that tax changes and         unemployment and                          declined in a third of EU countries.
social transfers intended to help the   underemployment have reached              Extreme child poverty in the United
poorest children have been                                                        States increased more during the
                                        worrying levels in many countries.
relatively ineffective.                                                           Great Recession than it did in the
                                        Even when unemployment or                 recession of 1982, suggesting that,
The ‘poverty gap’ (a measure of the
                                        inactivity decreases, that does not       for the very poorest, the safety net
distance between the poverty line
                                        necessarily mean that young people        affords less protection now than it
and the income of people below it)
                                        are finding stable, reasonably paid       did three decades ago.
has worsened in countries where
                                        jobs. The number of 15- to 24-year-
poverty has increased most,                                                       No government was prepared for
                                        olds in part-time work or who are
meaning that deprivation in those                                                 the extent or depth of the recession
                                        underemployed has tripled on
countries is more extensive and                                                   and none reacted in the same way.
                                        average in countries more exposed
intense. It is notable that this                                                  Many countries with higher levels
                                        to the recession. Contract work has
inequality has also increased in                                                  of child vulnerability would have
                                        become more common,
some places where overall child                                                   been wise to strengthen their safety
                                        contributing to the general
poverty has decreased. Moreover,                                                  nets during the pre-recession period
                                        precariousness of labour markets.
children in particularly vulnerable                                               of dynamic economic growth,
situations – such as those in           An uneven response                        which was marked by rising
jobless, migrant, lone-parent and       Many governments adopted                  disparity and a growing
large households – are over-            economic stimulus packages in the         concentration of wealth.
represented in the most severe
                                        initial phase of the recession,           Governments that bolstered existing
ranges of poverty statistics.
                                        pushing up public spending. The           public institutions and programmes
In 28 out of 31 European countries      persistence of the recession led to       helped to buffer countless children
(EU plus Iceland, Norway and            a decrease in national revenues and       from the crisis – a strategy that
Switzerland) the poverty rate has       an increase in deficits. Pressure         others may consider adopting.

                                                                     I n n o c e n t i   Re p o r t   C a r d   1 2      3
E x e c u t i v e   s u m m a r y

The consequences of a Great                  The problems have not ended for          »   Make an explicit commitment to
Leap Backward                                children and their families, and it          end child poverty in developed
All countries faced difficult choices,       may well take years for many of              countries. Countries should
limited budgets and worsening                them to return to pre-crisis levels of       place the well-being of children
recessions. The enormity of the              well-being. Failing to respond boldly        at the top of their responses to
challenges should not be                     could pose long-term risks – for             the recession, aligning their
underestimated. Demand for                   example, there has been a break in           ethical obligations with their
austerity measures was intense,              the upwards trend in fertility rates.        self-interest.
                                             In no region are these risks more
as were pleas from other vulnerable                                                   »   Rescue, prevent and give hope.
sectors. Compromises were                    problematic than in Europe, where
                                                                                          Opportunities to break cycles of
undoubtedly necessary.                       inequality is rising within and
                                                                                          child vulnerability should be
                                             between Member States,
But if protection policies had been                                                       promoted. Guaranteed minimum
                                             threatening to undermine the
stronger before, and if they had                                                          social standards would make a
                                             ambitious targets of Europe’s
been strengthened during the                                                              positive difference.
                                             2020 agenda.
recession, how many more children                                                     »   Produce better data for informed
could have been helped?                      The children of the recovery
                                                                                          public debate. Availability,
                                             What lies ahead for children                 timeliness and relevance of
A calculation of the impact of the
                                             neglected by the global response             information about the well-being
crisis on the median income of
                                             to the Great Recession? If the               of children should be improved.
households with children suggests
                                             neglect persists, the crisis among
that, between 2008 and 2012,
                                             children will continue well after
Greek families lost the equivalent
                                             any economic recovery. The long-
of 14 years of progress; Ireland,
                                             term well-being of our societies
Luxembourg and Spain lost a full
                                             is at stake.
decade; and four other nations lost
almost as much. The Great                    The analysis in this report suggests
Recession has brought suffering              the following principles and
and life-long risks to an extra              recommendations for governments
619,000 children in Italy, 444,000           to consider in strengthening child
in France and 2 million in Mexico.           protection strategies:

4       I n n o c e n t i   Re p o r t   C a r d   1 2
SECTION 1
Introduction

“The child should be fully prepared to live
an individual life in society, and brought up
in the spirit of the ideals proclaimed in the
Charter of the United Nations, and in
particular in the spirit of peace, dignity,
tolerance, freedom, equality and solidarity.”
                                            – Convention on the Rights of the Child, 1989

Twenty-five years after the             As the data in this new edition of        To be sure, the situation described
Convention on the Rights of the Child   the Innocenti Report Card series          here varies from country to
became international law, many of its   show, in the past five years, rising      country. A small but significant
commitments remain unrealized, and      numbers of children and their             group of countries responded to
the developed countries most            families have experienced difficulty      the crisis with ambitious and
capable of delivering on them are       in satisfying their most basic            timely plans that have sheltered
losing ground. The Great Recession,     material and educational needs.           children from the recession’s
which was triggered by a financial      Unemployment rates not seen since         most debilitating consequences.
meltdown that started in the United     the Great Depression of the 1930s         Many others have implemented
States and spread rapidly across the    have left many families unable to         partial reforms to safeguard such
globe, has inflicted the economic       provide the care, protection and          essentials as health services,
crisis on children. The gap between     opportunities to which children are       housing and food. In some cases,
rich and poor families has widened in   entitled. Most importantly, the           the honest efforts of governments
an alarming number of industrialized    Great Recession is about to trap          have been hindered by the weight
countries. For many of these            a generation of educated and              of the conditions imposed on
children, once again place of birth     capable youth in a limbo of               them by the financial markets
may determine their rights and          unmet expectations and lasting            and the providers of financial
opportunities in life.                  vulnerability.                            assistance.

                                                                   I n n o c e n t i   R e p o r t   C a r d   1 2   5
S E C T I O N   1   I nt r o d u ction

This report is not intended to               levels of children; the impact of the
recommend specific responses to              recession on youth; and what
the economic downturn or to                  repeated rounds of the Gallup
comment on the austerity policies            World Poll show about the change
that some countries are pursuing.            in people’s perceptions of their life
Rather, its goal is to highlight the         circumstances over the past five
fact that the current and future lives       years. Section 3 describes the
of children have been – and are              impact of the Great Recession on
being – neglected in the global              families, analysing the magnitude of
response to the Great Recession.             the shock on children and
Should this neglect persist, the             comparing it with the condition of
crisis for children will continue            other social groups. It also explores
to be felt well after the economic           the effects of the recession on
recovery. The long-term social               youth seeking to enter or remain in
health of our societies is at risk. If       the labour force in the middle of a
generations have defining moments,           recession. Section 4 offers an
this is certainly one of them.               explanation for why this happened,
                                             looking at the period that preceded
The structure of the report is as
                                             the crisis and describing the
follows: Section 2 features ‘league
                                             responses of different
tables’, the flagship tool of the
                                             governments. Section 5 presents
Innocenti Report Card series. The
                                             conclusions and recommendations.
tables rank the change, since the
onset of the crisis, in the poverty

6      I nnocenti         Re p o r t     C a r d   1 2
S E C T I O N   2    T h e   l e a g u e   t a b l es

SECTION 2
The league tables

Countries should place the well-being of
children at the top of their responses to the
recession. Not only is this a moral obligation
but it is in the self-interest of societies.

Surveys and polls produced in the        a complex concept – how children          The rankings focus on 2007/2008
European Union (EU) and/or the           have fared during the Great               up to the latest period for which
Organisation for Economic                Recession. The first covers               data are available. A light blue
Co-operation and Development             monetary poverty, a measure of the        background indicates a place in
(OECD) countries offer valuable          availability of resources to purchase     the top third of the table, mid
insights into the impact of the          goods and services to ensure              blue denotes the middle third,
recession on children and families.      material well-being. The second           and dark blue the bottom third.
Using such data, three important         ranking reports on the schooling          While some macroeconomic
rankings have been constructed:          and employment status of young            indicators in most affluent
the evolution of child poverty by        adults, who have arguably been the        countries show signs of recovery,
country since 2008; the change in        hardest hit during this period. And       economic growth is slow and
the rate of young people not in          our third league table is somewhat        unemployment remains
education, employment or training        innovative, employing data from           abnormally high. The impact of
(NEET); and individuals’ self-
                                         the Gallup World Poll to see what         the recession on children, in
perception of their living conditions.
                                         individuals themselves say about          particular, will be felt long after
Each of these league tables              their experiences during these            the recession itself is declared
describes a different dimension of       tumultuous economic times.                to be over.

                                                                      I nnocenti             R e p ort   C a r d    1 2      7
S E C T I O N       2   T h e   l e a g u e    t a b l es

League Table 1 Change in child poverty (anchored in 2008)

                                 Change
    Rank   Country
                                 (2008–2012)
                                                                                                                                                31.4
    1      Chile                 -8.67                              Chile                                                 22.8
                                                                                                                         22.4
    2      Poland                -7.90                            Poland                           14.5
                                                                                                                 19.2
    3      Australia             -6.27                          Australia                      13.0
                                                                                                          16.7
    4      Slovakia              -5.60                          Slovakia                    11.1
                                                                                                                 19.5
    5      Switzerland           -4.80                      Switzerland                             14.7
                                                                                       9.6
    6      Norway                -4.30                           Norway         5.3
                                                                                                          16.8
    7      Republic of Korea     -3.40              Republic of Korea                          13.4
                                                                                             12.0
    8      Finland               -3.20                           Finland              8.8
                                                                                                                                                     33.0
    9      Turkey                -2.76                            Turkey                                                                      30.2
                                                                                                                        21.7
    10     Japan                 -2.70                             Japan                                      19.0
                                                                                                                          23.2
    11     Canada                -2.44                           Canada                                            20.8
                                                                                                                                                  32.9
    12     Romania               -2.30                          Romania                                                                       30.6
                                                                                                        17.2
    13     Belgium               -0.80                          Belgium                                16.4
                                                                                              12.9
    13     Sweden                -0.80                          Sweden                       12.1
                                                                                                  14.9
    15     Austria               -0.70                            Austria                        14.2
                                                                                                               18.8
    16     New Zealand           -0.40                   New Zealand                                          18.4
                                                                                                13.2
    17     Czech Republic        -0.40                Czech Republic                           12.8
                                                                                                    15.2
    18     Germany               -0.20                          Germany                            15.0
                                                                                                                                                        35.1
    19     Israel                0.55                              Israel                                                                                35.6
                                                                                                                                 25.5
    20     Bulgaria              0.60                           Bulgaria                                                          26.1
                                                                                                                   20.4
    20     Malta                 0.60                              Malta                                            21.0
                                                                                               12.9
    22     Netherlands           1.00                     Netherlands                           13.9
                                                                                                                         22.8
    22     Portugal              1.00                           Portugal                                                   23.8
                                                                                      9.1
    24     Denmark               1.10                           Denmark                 10.2
                                                                                                                            24.0
    25     United Kingdom        1.60                United Kingdom                                                           25.6
                                                                                             11.6
    26     Slovenia              1.80                           Slovenia                        13.4
                                                                                                                                              30.1
    27     United States         2.06                    United States                                                                           32.2
                                                                                                   14.0
    28     Cyprus                2.70                             Cyprus                                  16.7
                                                                                                                  19.7
    29     Hungary               2.90                           Hungary                                                  22.6
                                                                                                      15.6
    30     France                3.00                             France                                      18.6
                                                                                                                                          29.3
    31     Mexico                5.00                            Mexico                                                                                34.3
                                                                                                           17.1
    32     Estonia               5.10                            Estonia                                                 22.2
                                                                                                                                24.7
    33     Italy                 5.70                               Italy                                                                     30.4
                                                                                                                  19.8
    34     Luxembourg            6.50                    Luxembourg                                                               26.3
                                                                                                                                      28.2
    35     Spain                 8.10                              Spain                                                                                    36.3
                                                                                                                         22.8
    36     Lithuania             8.30                           Lithuania                                                                       31.1
                                                                                                            18.0
    37     Ireland               10.60                            Ireland                                                                28.6
                                                                                                       15.8
    38     Croatia               11.80                           Croatia                                                               27.6
                                                                                                                           23.6
    39     Latvia                14.60                             Latvia                                                                                       38.2
                                                                                                                          23.0
    40     Greece                17.50                           Greece                                                                                              40.5
                                                                                            11.2
    41     Iceland               20.40                           Iceland                                                                        31.6

                                                                            0         10                      20                         30                     40          50

                                                                                                              Child poverty rate

                                                                                                                  2008                 2012
See data sources and notes on page 44.

8          I nnocenti           R e p ort      C a r d    1 2
S E C T I O N     2    T h e   l e a g u e   t a b l es

A commonly used indicator of child      Key findings:                                     and three other states that have
poverty is the proportion of those                                                        been hard hit by the recession:
                                        »   The impact of the recession can
                                                                                          Iceland, Ireland and Luxembourg.
living below an established poverty
                                            be felt in more than half of the 41
line. League Table 1 ranks the                                                            In the five countries at the
                                            countries (and in most of the
change in child poverty in 41 EU                                                          bottom of the table, child poverty
                                            highly populated countries) listed
and/or OECD countries between                                                             rose by 10 to 20 points – an
                                            in League Table 1. In 23
2008 and 2012. This change is                                                             increase of over 50 per cent.
                                            countries, the income poverty of
calculated by computing child
                                            children has increased since            »     In a remarkable group of
poverty in 2008 using a poverty line
                                            2008, with wide variations among              18 countries, families and
fixed at 60 per cent of median
                                            countries (from 0.55 percentage               governments found some
income. Using the same poverty line
                                            points in Israel to 20.40                     way to cope with the worst
in 2012, adjusted for inflation, the
                                            percentage points in Iceland).                consequences of the recession
rate is computed and the difference
                                                                                          and saw their child poverty
in the two rates is shown. A positive   »   The largest increase in child
                                                                                          numbers reduced. This is the
number indicates an increase in             poverty has been in southern
                                                                                          case in Chile, Finland, Norway,
child poverty. Additional                   European countries – Greece,
                                                                                          Poland and Slovakia, all of which
explanations of these trends are            Italy and Spain – as well as in
                                                                                          reduced poverty levels by some
provided in Section 3.                      Croatia, the three Baltic States
                                                                                          30 per cent.
                                                                                    »     The number of children entering
                                                                                          into poverty during the recession
    Interpreting the data – League Table 1
                                                                                          is 2.6 million higher than the
                                                                                          number that have been able to
                                                                                          escape it since 2008 (6.6 million,
                                                                                          versus 4 million). Around
                                                                                          76.5 million children live in
                                                                                          poverty in the 41 most affluent
                                                                                          countries.
                                                                                    »     In a surprisingly high number of
                                                                                          cases, average comparisons hide
    Poverty in affluent countries is usually measured using a relative                    the scale of the situation. In over
    poverty line defined at either 50 per cent or 60 per cent of median                   half of the countries, more than
    annual income. Using this approach, changes in poverty over time                      one child in five lives in poverty.
    reflect changes in income and changes in the distribution of income.                  Greece, Latvia and Spain have
    This report, however, uses a fixed reference point, anchored to the                   child poverty of above 36 per
    relative poverty line in 2008, as a benchmark against which to                        cent. In the United States, child
    assess the absolute change in child poverty over time. This measure                   poverty is 32 per cent, and in
    is particularly useful for assessing impacts of the recession, when                   Italy it is 30 per cent.
    incomes of the entire population may be changing, and when
    individuals compare their income to that of their neighbours, as well
    as to their own circumstances before the crisis.
    Using a relative poverty line each year obscures the impact on
    poverty of the overall decline in median income. In the United
    Kingdom, for example, relative child poverty decreased from
    24 per cent in 2008 to 18.6 per cent in 2012 due to a sharp decline
    in median income and the subsequent lowering of the relative
    poverty line. Using the anchored indicator, it actually increased from
    24.0 per cent to 25.6 per cent from the start of the recession.

                                                                       I nnocenti               R e p ort   C a r d    1 2      9
S E C T I O N      2   T h e   l e a g u e    t a b l es

League Table 2 Youth aged 15 to 24 not in education, employment or training (NEET), percentage

                                Change
 Rank     Country
                                (2008–2013)
                                                                                                                                                                     37.0
 1        Turkey                -11.5                            Turkey                                                                             25.5
                                                                                                 8.4
 2        Germany               -2.1                           Germany                 6.3
                                                                                                 8.5
 3        Japan                 -1.5                              Japan                  6.9
                                                                                        6.2
 4        Luxembourg            -1.2                    Luxembourg                   5.0
                                                                                                                                           21.5
 5        Mexico                -0.4                            Mexico                                                                    21.1
                                                                                             7.8
 6        Sweden                -0.3                           Sweden                       7.5
                                                                                            7.1
 7        Austria               0.0                              Austria                    7.1
                                                                                                   9.6
 7        Canada                0.0                             Canada                             9.6
                                                                                                               12.9
 9        New Zealand           0.8                     New Zealand                                             13.7
                                                                                       6.3
 10       Switzerland           0.8                        Switzerland                   7.1
                                                                                                                                                            29.8
 11       Israel                0.9                               Israel                                                                                      30.7
                                                                                                       10.2
 12       France                1.0                              France                                  11.2
                                                                                 4.5
 12       Iceland               1.0                             Iceland            5.5
                                                                                                                   14.9
 14       Ireland               1.2                              Ireland                                              16.1
                                                                                                             11.8
 14       Latvia                1.2                               Latvia                                       13.0
                                                                                                                   14.6
 14       Republic of Korea     1.2                Republic of Korea                                                 15.8
                                                                                                             12.1
 14       United Kingdom        1.2                 United Kingdom                                              13.3
                                                                                                                                   19.0
 18       Chile                 1.5                                Chile                                                              20.5
                                                                                             7.8
 18       Finland               1.5                             Finland                            9.3
                                                                                4.1
 18       Norway                1.5                             Norway             5.6
                                                                                4.3
 21       Denmark               1.7                            Denmark              6.0
                                                                                                 8.3
 21       Malta                 1.7                               Malta                                10.0
                                                                               3.4
 21       Netherlands           1.7                      Netherlands                 5.1
                                                                                                       9.9
 24       Australia             2.3                            Australia                                      12.2
                                                                                                 8.8
 25       Lithuania             2.3                            Lithuania                                 11.1
                                                                                           6.7
 26       Czech Republic        2.4                  Czech Republic                                9.1
                                                                                                      10.1
 27       Belgium               2.6                            Belgium                                         12.7
                                                                                                 8.7
 27       Estonia               2.6                             Estonia                                  11.3
                                                                                                         11.1
 27       Slovakia              2.6                            Slovakia                                             13.7
                                                                                           6.5
 30       Slovenia              2.7                            Slovenia                            9.2
                                                                                                             12.0
 31       United States         3.0                     United States                                                 15.0
                                                                                                  9.0
 32       Poland                3.2                              Poland                                       12.2
                                                                                                             11.5
 33       Hungary               3.9                            Hungary                                                 15.4
                                                                                                       10.3
 33       Portugal              3.9                            Portugal                                              14.2
                                                                                                                              17.4
 35       Bulgaria              4.2                            Bulgaria                                                                    21.6
                                                                                                                     14.3
 36       Spain                 4.3                               Spain                                                            18.6
                                                                                                                            16.6
 37       Italy                 5.6                                Italy                                                                     22.2
                                                                                                             11.6
 37       Romania               5.6                            Romania                                                       17.2
                                                                                                       10.1
 39       Croatia               8.5                             Croatia                                                           18.6
                                                                                                             11.7
 40       Greece                8.9                             Greece                                                                    20.6
                                                                                                    9.7
 41       Cyprus                9.0                              Cyprus                                                            18.7

                                                                           0                     10                                20                      30           40

                                                                                                                       NEET rate (%)

                                                                                                                           2008             2013
See data sources and notes on page 44.

1 0      I nnocenti            R e p ort      C a r d    1 2
S E C T I O N    2    T h e   l e a g u e   t a b l es

The NEET rate is the percentage of        »   Of the OECD countries that are        »     In countries such as Croatia and
young people aged 15 to 24 who                not in the European Union, the              Greece, the deterioration in the
are not participating in education,           United States saw the largest               circumstances of youth went
employment or training. League                increase in the NEET rate,                  hand in hand with an increase in
Table 2 shows the NEET ranking of             followed by Australia.                      child poverty, but there does not
the 41 countries between 2008                                                             appear to be a strong relationship
and 2013.
                                          »   Across all the countries, the
                                                                                          between the two. Iceland
                                              sharpest NEET rate decrease was
                                                                                          mitigated a rise in the NEET rate
Key findings:                                 in Turkey. Even so, that country
                                                                                          despite a dramatic increase in
»   The recession hit young people            retained the highest rate in the
                                                                                          child poverty, while Romania saw
    extremely hard, with the NEET             comparison: one young person in
                                                                                          the NEET rate rise even as child
    rate rising dramatically in most          four was NEET in 2013. Similarly
                                                                                          poverty fell.
    EU countries. The largest                 in Mexico, though the NEET rate
    absolute increases were in                has remained stable, one young
    Croatia, Cyprus, Greece, Italy            person in five was NEET.
    and Romania, all with relative
                                          »   Generally speaking, young people
    changes of around 30 per cent
                                              have suffered more in countries
    or higher.
                                              that have seen a greater decline
»   Across the EU, 7.5 million young          in economic output. The two
    people (almost the entire                 notable exceptions are
    population of Switzerland) were           Luxembourg (where the NEET
    NEET in 2013, nearly a million            rate fell during a specific period
    more than in 2008. In Italy alone,        of economic turbulence) and
    more than a million young                 Poland (where the NEET rate
    people aged 15–24 were neither            increased, despite sustained
    studying nor working in 2013.             economic growth).

      Interpreting the data – League Table 2

      High NEET rates suggest an interrupted transition from school to
      work, or from school to further education, with long-term individual
      and societal costs. Increases in the NEET rate reflect the recession’s
      impact on a generation of young people; the kind of productive
      adulthood their parents took for granted is slipping away.

                                                                        I nnocenti             R e p ort   C a r d    1 2    1 1
S E C T I O N    2   T h e    l e a g u e   t a b l es

League Table 3 How people say their lives have changed
What people say about their living situation when asked...
Country rankings based on change 2007–2013, Gallup World Poll. Figures in columns 1 to 4 show the relative
position of each country in relation to the rest, and column 5 indicates the number of these indicators that had
worsened in each country between 2007 and 2013.

                                                                                                          Direction of
 Countries ranked based on change 2007–2013                                                                              Recent Impact
                                                                                                          change

                       1   Have there been
                           times in the past
                       12 months when you
                                                 2   Did you
                                                     experience
                                                 stress today?
                                                                  3   Overall
                                                                      satisfaction
                                                                  with life?
                                                                                     4    Do most
                                                                                          children in
                                                                                     (country) have
                                                                                                          5  Number of
                                                                                                             indicators
                                                                                                          worsening
                                                                                                                         6 ! = >2
                                                                                                                           indicators
                                                                                                                        worsened
 Country               did not have enough                                           the opportunity      2007–2013     2011–2013
                       money to buy food                                             to learn and grow
                       that you or your family                                       every day, or not?
                       needed?
 Germany                           4                      9              3                   6                   0
 Switzerland                       3                     12              8                   11                  1
 Israel                            4                     29              6                    2                  1             !
 Slovakia                          26                    13              3                    4                  2
 Chile                              1                    32               1                  14                  1
 Iceland                           18                    16               3                  11                  2
 Australia                         13                     6              15                  15                  1
 Austria                            4                    16               8                  21                  2
 Japan                              8                     7              27                   8                  1
 Bulgaria                           1                    n.a.            11                  29                  1
 Latvia                            28                    15               7                   5                  2
 Sweden                             4                    11              10                  34                  2
 Denmark                            8                     9              28                  15                  1
 Mexico                            23                     8               2                  28                  2
 Lithuania                         29                     4              28                   1                  2
 Republic of Korea                 32                     2              12                  17                  1             !
 Norway                            16                    21              15                  11                  2
 Czech Republic                     8                    25              12                  19                  1
 France                            26                     5              15                  19                  1
 Malta                             20                    25              15                   8                  2
 Poland                            18                    20              28                   3                  3
 United Kingdom                     8                    25              15                  21                  2             !
 Belgium                           13                    18              24                  17                  3
 Italy                             13                    21              36                   8                  3
 Luxembourg                        16                    25              15                  26                  3             !
 New Zealand                       23                     1              31                  31                  3
 Canada                             8                    32              15                  34                  2
 Hungary                           41                    18              24                   6                  3
 Estonia                           35                    13              15                  36                  3             !
 Croatia                           29                    n.a.            15                  33                  2
 Netherlands                       29                    30              24                  21                  4             !
 Romania                           32                     3              33                  37                  3
 Slovenia                          20                    34              12                  39                  3
 Finland                           20                    34              31                  21                  4
 United States                     37                    21              33                  21                  4             !
 Portugal                          35                    21              35                  31                  4             !
 Spain                             23                    30              40                  38                  4             !
 Ireland                           32                    36              38                  30                  4             !
 Turkey                            40                    38              37                  27                  4             !
 Cyprus                            38                    37              38                  40                  4             !
 Greece                            39                    39              41                  41                  4             !

See data sources and notes on page 44

1 2      I nnocenti            R e p ort     C a r d   1 2
S E C T I O N    2    T h e   l e a g u e   t a b l es

Another way of looking at the impact            »   In 29 of the 41 countries, the                »     Some of the trends indicate that
of the Great Recession is simply to                 survey shows an increase in the                     dramatic societal changes are
ask people about their experiences                  percentage of respondents who                       under way. In Greece, the share
and perceptions. The Gallup World                   reported not having enough money                    of respondents saying they
Poll does that every year, using a                  to buy food for themselves and                      “experienced stress today”
representative sample of 1,000                      their family. Again in 29 countries,                jumped from 49 per cent in 2006
respondents in each country. The                    the stress indicator increased. In                  to 74 per cent in 2013. In the
four questions in League Table 3                    almost half of the countries, overall               United States, the share of
come from those polls.                              life satisfaction decreased. And in                 respondents that have
                                                    21 of the 41 countries, fewer                       experienced not having enough
Key findings:
                                                    respondents agreed with the                         money to buy food doubled, from
»   Beyond income and                               statement that children have the                    10 per cent to 20 per cent. The
    employment levels, the                          opportunity to learn and grow.                      share of respondents who think
    recession affected a number                                                                         children have an opportunity to
    of other dimensions of                      »   In terms of its impact on personal                  learn and grow dropped by
    people’s lives. In 18 of the 41                 experiences and perceptions, the                    between 10 and 20 percentage
    countries, three or more of                     recession is certainly not over. In                 points in five countries:
    these indicators reveal rising                  13 countries, negative responses                    Cyprus, Greece, Slovenia, Spain
    feelings of insecurity and                      to three or four questions were still               and Romania.
    stress from 2007 to 2013. The                   rising between 2011 and 2013,
                                                                                                  Summary
    most severely affected                          particularly in countries such as
    countries are clustered at the                  Cyprus, Greece, Ireland, Israel, the          The overall evidence from our three
    bottom of the table.                            Netherlands, Spain and Turkey.                league tables paints a vivid picture
                                                                                                  of how children and families have
                                                                                                  fared during the Great Recession.
                                                                                                  Although each league table
      Interpreting the data – League Table 3                                                      provides somewhat different
                                                                                                  dimensions of well-being, countries
                                                                                                  like Croatia, Greece and Spain are
      Countries are ranked based on their average score across the four                           consistently placed in the bottom
      indicators, each of which measures how responses changed                                    third across all dimensions,
      between 2007 and 2013. The highest number indicates the sharpest                            highlighting how badly they have
      change. Column 5 indicates how many of the responses to the four                            been hit by the recession. On the
      were negative over the full period. Note that these data are collected                      other hand, some relatively wealthy
      in a different way from those reported in official statistics and should                    countries (such as Canada, Finland,
      be interpreted with care when it comes to individual data points.i                          the Netherlands and the United
                                                                                                  States) have seen only small
      Due to data availability, the numbers in the table refer to the
                                                                                                  increases – or even declines – in
      population in general, not to families with children. However, for the
                                                                                                  child poverty and yet rank in the
      question on not having enough money to buy food, it was possible
                                                                                                  bottom third of the Gallup league
      to disaggregate respondents living in families with children for a
                                                                                                  table, suggesting that monetary
      subset of 31 countries. In the 10 countries where responses changed
                                                                                                  poverty alone does not tell the
      the most, the increase was even higher in families with children (in
                                                                                                  whole story of the well-being of
      all but one country).
                                                                                                  families during this period. The next
      i
       For a more in-depth exploration of the Gallup World Poll, as well as a                     sections of the report provide more
      validation exercise where Gallup World Poll indicators are compared to                      details behind these aggregate
      corresponding indicators from other established data sources, see:                          numbers, in order to help us
      Holmqvist, G. and L. Natali, ‘Exploring the Late Impact of the Financial Crisis
      using Gallup World Poll Data: A note’, Innocenti Working Paper 2014-14,                     understand who suffered most and
      UNICEF Office of Research, Florence, 2014.                                                  how countries responded.

                                                                                   I nnocenti                R e p ort   C a r d    1 2    1 3
SECTION 3
How a financial crisis turned
into a crisis for children

          Box 1 Measuring the exposure
          to the Great Recession

      Bearing in mind that the recession was different in each country, we
      have separated the countries into three groups, in order to assess
      their exposure to the crisis: most, moderately and least affected.i

      Most affected: a) Countries that are supported by International
      Monetary Fund (IMF)/EU/European Central Bank programmes and
      that promptly implemented fiscal adjustments: Estonia, Hungary,
      Iceland, Latvia and Lithuania. b) Countries with evident fiscal                This section presents arguments
      problems that experienced market pressure (with a Credit Default               and data that show how the global
      Swap spread higher than 500 in 2012): Croatia, Cyprus, Greece,                 financial shock and ensuing
      Ireland, Italy, Portugal and Spain.                                            recession turned into a crisis for
                                                                                     children. It reveals a strong
      Moderately affected: Countries that are highly indebted (more than
                                                                                     correlation between the extent to
      60 per cent of Gross Domestic Product (GDP)) or that suffered a
                                                                                     which the recession ravaged
      large debt increase (more than the average): Austria, Belgium,
                                                                                     national economies and the decline
      Canada, Finland, France, Germany, Israel, Japan, Malta, the
                                                                                     in child well-being since 2008. In
      Netherlands, New Zealand, Romania, Slovakia, Slovenia, the United
                                                                                     countries where the Great
      Kingdom and the United States.
                                                                                     Recession hit hardest, children are
      Least affected: Countries least affected by the crisis:i i Australia,          suffering the most and will bear the
      Bulgaria, Chile, Czech Republic, Denmark, Luxembourg, Mexico,                  consequences the longest. Below, a
      Norway, Poland, Republic of Korea, Sweden, Switzerland and Turkey.             conceptual framework traces the
      i
                                                                                     paths that increased the risks to
       For a more extensive explanation of the rationale behind this
      classification see: Natali, L., B. Martorano, S. Handa, G. Holmqvist and
                                                                                     children and weakened the ability of
      Y. Chzhen, ‘Trends in Child Well-being in EU Countries during the Great        families and states to mitigate those
      Recession: A cross-country comparative perspective’, Innocenti Working         risks. The variables triggering the
      Paper 2014-10, UNICEF Office of Research, Florence, 2014.                      risks are numerous and diverse in
      ii
         Although Luxembourg and Mexico suffered more than other countries           intensity and duration. Two factors
      during the recent economic crisis, they are included in the least affected
      group because a) they did not come under intense market pressure and           prove particularly important for
      b) debt levels were lower than 60 per cent of GDP. More detail about           households with children: the
      these two countries is reported in Natali et al. ‘Trends in Child Well-being   position of parents in the labour
      in EU Countries during the Great Recession’.
                                                                                     market and the depleted capacity of
                                                                                     states to protect families.

1 4       I n n o c e n t i   R e p o r t   C a r d   1 2
S E C T I O N    3   H o w     a             f in a nci a l   c r isis   t u r ne d   into      a     c r isis    f o r   chi l d r en

Conceptual framework: How did the financial crisis turn into a crisis for children?

                                                                           Global financial crisis
                                                                           sovereign debt, economic crisis
                                                                           The crisis originated in the banking and housing sectors in developed
                                                                           countries and rapidly spread to other parts of the world. Although it
   Policies to contain the                                                 started as a financial crisis, it quickly evolved into an economic crisis, and
   negative consequences of                                                in several European countries took the form of a sovereign debt crisis.
   the macroeconomic shock
   In the majority of the cases
   monetary policy was
                                                                           Transmission channels
   accommodating but
   inadequate, since policy                                                Labour market: The decrease in demand for goods and services led to a
   interest rates were close to                                            reduction in jobs and a tightening of labour conditions, provoking a drop
   zero. Many countries                                                    in household income.
   depreciated their national                                              Financial market: Loss in private wealth due to asset deterioration and
   currencies to counter the                                               restricted access to credit.
   drop in international demand.                                           Public sector channel: Rapid deterioration of public finances prompted
   However, in the majority of                                             aggressive austerity programmes and diverse responses in the form of
   cases the only tool available                                           higher taxes and/or lower spending on public services.
   to policymakers was fiscal
                                                      Policy responses

   policy (e.g. Eurozone).
   Governments also
   implemented active and
                                                                           Household impact
   passive labour market policies.
                                                                           Reduced income due to               Reduced consumption
                                                                           unemployment, increased
                                                                                                               Stress and domestic violence
                                                                           taxes and reduced transfers
      Social protection
                                                                                                               Lack of nurture and care
      system responses:                                                    Family asset depletion
                                                                                                               Social exclusion
                                                                           Deterioration in access to
      Automatic stabilizers,
                                                                           and quality of services
      such as unemployment
      insurance and
      minimum income.
                                                                             Direct impact on children and youth
      Discretionary policies,                                                Material deprivation              Mental health
      such as cash payments
      in the early period and                                                Nutrition/food security           Protection
      cuts in public spending                                                Human capital investment          Employment opportunities
      with different priorities                                              1. Health
      in the second period.                                                  2. Education                      Fertility

Source: Natali et al. ‘Trends in Child Well-being in EU Countries during the Great Recession’.

Trapped in the cycle of poverty                                 in front of friends and classmates.             Poverty is a self-reinforcing cycle.
Children rarely manage to sidestep                              They are consciously or                         A child with unemployed parents
the stress and suffering of parents                             unconsciously affected by changes               may do less well at school. Doing
enduring unemployment or a                                      in their diets, the elimination of              less well at school may bring
significant reduction in income.                                sports, music or other activities, or           more stress at home. And so on.
They experience downturns in                                    a lack of funds to buy school                   The longer a child is locked in the
family fortunes in both subtle and                              materials. Extreme circumstances                cycle, the fewer the possibilities
painfully evident ways. They suffer                             may force their families from their             of escape.
minor slights and major humiliations                            homes or even their countries.

                                                                                                    I nnocenti             Re p o r t   C a r d   1 2    1 5
S E C T I O N   3   H o w   a   f in a nci a l   c r isis                               t u r ne d   into       a   c r isis       f o r   chi l d r en

Difficulty making ends meet                      Figure 1 Median income in European households with children
                                                 (per exposure)
Figure 1 and Figure 2 show the
evolution of median income in                                                    120
European households1 with
                                                 Median income – hhs
children, and the percentage of                                                  110

those households that are having                    with children
great difficulty in making ends                                                  100

meet. The households are
categorized according to the                                                       90

exposure of their national
economies to the recession (see                                                    80
                                                                                           2007          2008              2009          2010      2011           2012
Box 1). The first case shows a                                                                                                    Year
group of 14 (out of 30) countries                                                                 Most affected              Moderately affected           Least affected
whose median income decreased,                   Source: Eurostat. Median income is expressed in 2007 prices, national currency.
with sharp falls in Ireland, Spain and           Note: No data for Cyprus, Croatia, Slovakia and Turkey.
the United Kingdom (all around
15 per cent), and even larger drops
                                                 Figure 2 European households with children making ends meet with great
in Greece, Iceland and Latvia (all               difficulty (per exposure)
24 per cent or higher).
                                                                                 200
                                                 Hhs with children making ends

These trends are confirmed in
                                                   meet with great difficulty

                                                                                 180
Figure 3, which reports how
families say their circumstances                                                 160
have changed. The proportion of
                                                                                 140
households stating that their
                                                                                 120
situation is ‘very difficult’ has risen
on average in all categories, with                                               100
the greatest intensity in the
                                                                                   80
countries most affected.2                                                                     2006                   2008                  2010               2012
                                                                                                                                  Year
Children with workless parents
                                                                                                  Most affected             Moderately affected           Least affected
Labour market exclusion and cuts                 Source: Eurostat.
in social transfers appear to be the             Note: No data for Turkey and Croatia; Switzerland (2006); Ireland (2012).

underlying factors driving these
changes. From 2008 to 2012, the
                                                 Figure 3 Proportion of households reporting that their feeling about
proportion of households where all               household income is ‘very difficult’ (per exposure)
adults were workless increased                                                   120
most in those countries with the
                                                 Very difficult to live on

highest incidence of child poverty.3
                                                  household income

                                                                                 110
The results of our own research
show that the proportion of children                                             100
up to age 17 living in jobless
households nearly doubled in                                                       90
Portugal and Spain, and nearly
tripled in Denmark. The largest                                                    80
absolute increases (above 5 per                                                           2007        2008          2009          2010      2011    2012          2013
                                                                                                                                  Year
cent) were in Bulgaria, Greece,
Ireland and Spain.                                                                                Most affected             Moderately affected           Least affected
                                                 Source: Gallup World Poll.
                                                 Note: Out of the 41 countries covered in this report, the following are not included in this figure:
                                                 Austria, Cyprus, Finland, Iceland, Ireland, Luxembourg, Malta, Norway, Portugal, Slovakia, Slovenia
                                                 and Switzerland.

1 6     I nnocenti              Re p o r t   C a r d                             1 2
S E C T I O N                            3         H o w             a       f in a nci a l                                                  c r isis                        t u r ne d                    into                   a       c r isis                         f o r            chi l d r en

Figure 4 shows these trends by the                                                                                  Figure 4 Children in jobless households (per exposure)
exposure of the different groups to

                                                                                                                     Children 0-17 living in jobless
the recession. The implications of
                                                                                                                                                         180
this rise in unemployment were
highlighted by the OECD in a recent                                                                                                                      160

                                                                                                                              households
report: “With more than one in eight                                                                                                                     140
working-age individuals in most
countries now living in workless                                                                                                                         120

households, the success of                                                                                                                               100
redistribution measures and active
social policies is gauged to a large                                                                                                                                                   2006                                          2008                                            2010                                           2012
                                                                                                                                                                                                                                                              Year
extent on whether they can improve
economic security for families                                                                                                                                                               Most affected                                         Moderately affected                                                     Least affected
without any income from work.”4                                                                                     Source: Eurostat.
                                                                                                                    Note: No data for Iceland, Norway, Switzerland and Sweden.
The working poor and other
vulnerable groups
Households with two children have                                                                                   migrant or lone-parent families – and                                                                                                    countries, the proportion of
spending needs that are, on                                                                                         the risks multiply. Having a child or                                                                                                    households with children unable to
average, 40 per cent higher than                                                                                    children in a household increases                                                                                                        face unexpected financial expenses
comparable families without                                                                                         the risk of ‘working poverty’                                                                                                            has increased by almost 60 per
children.5 As a consequence,                                                                                        (working, but below the poverty line)                                                                                                    cent, on average. For many
households with children are much                                                                                   from 7 per cent to 11 per cent. For                                                                                                      households, their toehold on the
more likely to be poor. Add in other                                                                                lone parents, this almost doubles                                                                                                        lower rungs of middle-class life is
layers of vulnerability – such as                                                                                   (20.2 per cent).6 In the most affected                                                                                                   increasingly fragile (see Box 2).

Figure 5 Change in severe child material deprivation in Europe (2008–2012)
           50

           40

           30
Per cent

           20

           10

            0

           -10
                 Poland
                          Germany
                                    Switzerland
                                                  Austria
                                                            Portugal
                                                                       Romania
                                                                                     Slovakia
                                                                                                Norway
                                                                                                         Finland
                                                                                                                   Sweden
                                                                                                                                        Czech Republic
                                                                                                                                                          France
                                                                                                                                                                   Slovenia
                                                                                                                                                                              Luxembourg
                                                                                                                                                                                           Netherlands
                                                                                                                                                                                                         Denmark
                                                                                                                                                                                                                   Belgium
                                                                                                                                                                                                                             Spain
                                                                                                                                                                                                                                     Iceland
                                                                                                                                                                                                                                               Estonia
                                                                                                                                                                                                                                                         Lithuania
                                                                                                                                                                                                                                                                     Ireland
                                                                                                                                                                                                                                                                               Bulgaria
                                                                                                                                                                                                                                                                                          United Kingdom
                                                                                                                                                                                                                                                                                                           Malta
                                                                                                                                                                                                                                                                                                                   Italy
                                                                                                                                                                                                                                                                                                                           Latvia
                                                                                                                                                                                                                                                                                                                                    Cyprus
                                                                                                                                                                                                                                                                                                                                              Greece
                                                                                                                                                                                                                                                                                                                                                       Hungary

                                                                                                                                              Change (2008–2012)                                                       2008                    2012
Source: Eurostat.
Note: No data for Croatia.

                                                                                                                                                                                                                             I nnocenti                                        Re p o r t                           C a r d                  1 2             1 7
S E C T I O N   3   H o w   a   f in a nci a l   c r isis    t u r ne d       into   a   c r isis   f o r   chi l d r en

        Box 2 Europe: Less income, less protection,
        more material deprivation

        The overall picture of material well-being of families            cent) in 2012 lived in three countries: Italy (16 per
        is broadly captured by the ‘severe material                       cent), Romania (14 per cent) and the United Kingdom
        deprivation’ indicator. Children (0–17) are considered            (14 per cent).
        to be severely materially deprived when the
                                                                          Provisional estimates for 2013 show that some
        household in which they live cannot afford at least
                                                                          countries – notably Estonia and Latvia – started on
        four of the following nine items: 1) to pay rent,
                                                                          the road to recovery in 2012. However, there are still
        mortgage or utilities; 2) to keep the home adequately
                                                                          reasons to be concerned. The deterioration in the
        warm; 3) to face unexpected expenses; 4) to eat
                                                                          severe material deprivation indicator is mainly related
        meat or proteins regularly; 5) to take a holiday; 6) to
                                                                          to the first five components on the list, those most
        have a television; 7) to have a washing machine;
                                                                          sensitive to household income. The last four
        8) to have a car; 9) to have a telephone. In contrast
                                                                          deprivation items – the so-called ‘durables’ – are
        to purely monetary measures of the financial
                                                                          likely to worsen in the latter phase, as the recession
        resources of households, this indicator shows the
                                                                          continues and families are unable to repair or replace
        satisfaction of material fundamental needs.i
                                                                          their assets.i i i
        In 2008, there was an abrupt break in the positive
                                                                          Material deprivation and income poverty can be
        trend of previous years. In the first phase of the
                                                                          combined for a more complete story of the impact of
        recession (2008–2010), the proportion of children
                                                                          the recession on households with children. Figure 6
        with severe material deprivation increased sharply in
                                                                          shows that in Greece and Iceland – the two countries
        the countries most affected by the Great Recession,
                                                                          at the bottom of the child poverty league table – not
        and was relatively stable in the remaining countries.
                                                                          only has the absolute number of poor children risen
        After 2010, deprivation worsened, on average,
                                                                          dramatically, but it has done so in the context of
        everywhere. Two-thirds of the European countries in
                                                                          increased severe material deprivation. The proportion
        this analysis saw material deprivation worsen after
                                                                          of children who are income poor and severely
        2008 (see Figure 5), with the largest absolute
                                                                          deprived has tripled in Greece and quadrupled in
        increases in Cyprus, Greece and Hungary. In relative
                                                                          Iceland.
        terms, the severe child material deprivation rate
        doubled in Greece and tripled in Iceland, albeit from
        a very low base. In the group of hard-hit countries,
        the proportion of severely deprived children nearly
        doubled in four years.                                            i
                                                                           de Neubourg, C., J. Bradshaw, Y. Chzhen, G. Main, B.
        The magnitude of this change is worthy of note. The               Martorano and L. Menchini, ‘Child Deprivation,
                                                                          Multidimensional Poverty and Monetary Poverty in
        absolute number of children living in severe material             Europe’, Innocenti Working Paper No. 2012-02, UNICEF
        deprivation in the 30 European countries analysed                 Innocenti Research Centre, Florence, 2012, p. 1.
        was 11.1 million in 2012 –1.6 million more than in                ii
                                                                           There was a break in 2012 in the United Kingdom
        2008. This trend is the result of a net effect that               series: the figures should be interpreted with caution.
        includes substantial decreases (more than 300,000                 iii
                                                                            McKnight, A., ‘Measuring Material Deprivation over
        fewer deprived children in Germany and Poland) and                the Economic Crisis: Does a re-evaluation of “need”
                                                                          affect measures of material deprivation?’, Gini Policy
        unprecedented increases in four countries (Greece,
                                                                          Paper 4, Centre for Analysis of Social Exclusion, London
        Italy, Spain and the United Kingdom).i i Almost half of           School of Economics, 2013. www.gini-research.org/
        the severely materially deprived children (44 per                 system/uploads/553/original/PP4.pdf?1380631527

1 8     I nnocenti              Re p o r t   C a r d   1 2
S E C T I O N   3   H o w   a   f in a nci a l     c r isis    t u r ne d   into     a    c r isis    f o r    chi l d r en

Food, shelter and nurture                       Figure 6 Child poverty and severe material deprivation in Greece
                                                and Iceland (2008 and 2012)
A shortfall in family income is
particularly hard on children. The              Greece 2008                                 Greece 2012
food they eat, where they live, the
time they spend with parents and
friends, and the public services to
which they are entitled – these are
important factors that determine
their well-being.
Access to food                                                                Per cent
Daily nutritional intake and the                      Total poor              23.0
                                                      Poor only               16.9
consumption of nutritious food, such
                                                      Total deprived          10.4
as fish and vegetables, declined in                   Deprived only           4.3
the most affected countries during                    Poor and deprived       6.2
the recession. After 2008, the                                                                                                Per cent
                                                      Neither poor nor        72.7
percentage of households with                         deprived                                     Total poor                 40.5
                                                                                                   Poor only                  22.6
children unable to afford a meal with
                                                                                                   Total deprived             20.9
meat, chicken, fish (or a vegetable                                                                Deprived only              2.9
equivalent) every second day more
                                                                                                   Poor and deprived          17.9
than doubled in Estonia, Greece,
                                                                                                   Neither poor nor           56.6
Iceland and Italy, reaching 10 per                                                                 deprived
cent, 18 per cent, 6 per cent and 16
per cent, respectively, in 2012.                Iceland 2008                                Iceland 2012
UNICEF National Committees report
that diverse public and private
initiatives have sprung up across
Europe to combat the increasing                                               Per cent
problem of malnutrition, including                    Total poor              11.2
school meal programmes, food                          Poor only               10.7
banks and meal vouchers.                              Total deprived          0.9
Furthermore, some 9 million poor                      Deprived only           0.4
women and children in the United                      Poor and deprived       0.6
States receive federal food                           Neither poor nor        88.4
                                                                                                                              Per cent
                                                      deprived
assistance annually,7 with more than                                                               Total poor                 31.6
47 million Americans living in                                                                     Poor only                  29.1
households that have difficulty in                                                                 Total deprived             3.1
                                                                                                   Deprived only              0.6
putting food on the table.8 Between
2008 and 2013, the use of food                                                                     Poor and deprived          2.6

banks by families in Canada                                                                        Neither poor nor           67.8
                                                                                                   deprived
increased by 23 per cent.9
                                                Source: EU-SILC.
Housing conditions
Evictions, mortgage defaults and
                                                mortgages were in negative equity             2008. The recession has also
foreclosures have been a tragic
                                                in 2013. In Greece, at least 60,000           affected savings and economic
reality in a number of countries hit by
                                                house owners faced immediate                  opportunities throughout the
the recession. In Spain, 244,000
                                                danger of eviction in 2013.10 In the          country.11
evictions were registered from 2008
                                                United States, where the financial
to 2012 by the European Federation                                                            The cost of housing may be a
                                                crisis began, more than 13 million
of Public, Cooperative & Social                                                               challenge for many people long
                                                foreclosures have been filed since
Housing. In Ireland, 400,000                                                                  before evictions and foreclosures

                                                                                     I nnocenti          Re p o r t   C a r d        1 2   1 9
S E C T I O N   3   H o w   a   f in a nci a l    c r isis                                      t u r ne d    into          a    c r isis       f o r      chi l d r en

take place. Rent, mortgage                       of being contacted by child                                                                  in the income chain. In the end, how
payments and other housing costs                 protective services.16                                                                       the impacts are spread depends less
are generally the largest                                                                                                                     on the depth of the recession and
                                                 Essential services
expenditure in a family budget. The                                                                                                           more on the existing economic
                                                 As family incomes decrease and
proportion of children in families                                                                                                            structure and social safety nets and,
                                                 contextual conditions deteriorate, so
overburdened by housing costs has                                                                                                             most importantly, on policy
                                                 risk in children’s lives increases. And
increased in 19 European countries                                                                                                            responses.
                                                 the capacity of governments and
since 2008.12 In some cases, lack of
                                                 public institutions to protect them                                                          To assess whether the impact of the
access to affordable housing leads
                                                 has not improved accordingly in                                                              recession did fall disproportionately
to homelessness of children and
                                                 critical areas such as health and                                                            on children, the situation of average
other extreme consequences.13
                                                 education. In European countries                                                             children was compared to that of
Parental time and care                           that have been moderately and                                                                the poorest children in the income
The quantity and quality of time that            severely affected by the recession,                                                          distribution chain. The impact on
parents spend with their children is             the proportion of young adults with                                                          children in particularly vulnerable
affected by income reductions and                unmet health needs has increased                                                             groups, such as migrants, lone-
contextual stress. Loss of parental              significantly since 2008. More than a                                                        parent families and workless
time is more acute in poorer                     third of OECD countries reduced                                                              households, was also assessed, as
families, contrary to conventional               public education spending after                                                              were the impacts on children
wisdom.14 Long working hours, less               2010, and several more froze it.17                                                           compared to the impact on other
help at home and a lack of leisure               These cuts will have both short-term                                                         traditionally vulnerable social groups,
activities can have a debilitating               and long-term impacts.                                                                       such as the elderly, as well as on
effect on family relationships,                                                                                                               society in general.
                                                 Have children suffered most?
affecting children in critical periods
                                                 How does an economic crisis affect                                                           Impacts on the poorest
of intellectual and emotional
development. For separated or                    inequality? Inequality can lessen if                                                         Since 2008, the position of the
divorced couples in Italy, for                   better-off households lose income,                                                           poorest children has actually
instance, income constraints caused              while poorer sectors of society                                                              worsened in most of the countries
by the recession add to the                      remain protected by existing public                                                          studied. The poverty gap indicator
pressure on already stressed                     policies and safety nets. But                                                                (see Figure 7) captures the depth of
relationships.15 Trends in violence              inequality can worsen if the weight                                                          this phenomenon by measuring the
against children also feel an impact:            of the recession falls on the weakest                                                        distance from the poverty line to the
in the United States, the drop in
consumer confidence since 2007
                                                 Figure 7 Change in poverty gap vs change in headcount (2008–2012)
has been associated with a
                                                                                                                                      Change poverty gap= 1.0352 + .22455 change headcount
considerable increase in the
                                                                                                                                                                                    GR
incidence of mothers hitting their                                                  10
                                                 Change in poverty gap (anchored)

                                                                                                                                                        ES
children frequently. We find that the
                                                                                                                                  DK     HU
large decline in consumer                                                            5                  SK                               CY
                                                                                                                       AT   SE NL                IT                                      IS
                                                                                                                                                                       LV
confidence during the Great                                                                                            BE      PT
                                                                                                   PL                       CZ    SI
Recession, as measured by the                                                        0                       CH                          FR
                                                                                                                                               EE LU            IE
                                                                                                                               BG
                                                                                                                  FI
Consumer Sentiment Index, has                                                                                NO
                                                                                                                             DE
                                                                                                                                    UK
                                                                                                                                                           LT

been associated with worse                                                           -5                                          MT
parenting behaviour. In particular,                                                                                    RO
lower levels of consumer
                                                                                    -10
confidence are associated with                                                            -10                             0                       10                                     20
increased levels of high-frequency                                                                                      Change in headcount (anchored)
spanking, a parenting behaviour that                                                                                                       Fitted values
is associated with greater likelihood
                                                                                          R-squared=0.1426

                                                 Source: Eurostat for the anchored headcount; EU-SILC for the anchored poverty gap.

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S E C T I O N   3     H o w   a   f in a nci a l   c r isis     t u r ne d   into   a    c r isis    f o r   chi l d r en

Box 3 The crisis in Greece through a child’s eyes

The indicators in this Report Card do not fully capture           stopped going on holiday trips (see Figure 8).
how children’s views of their lives have changed. To              Around one student in ten had to stop tutoring
gain a deeper insight into the perspectives of                    sessions or had to move to another area or to a
children, we commissioned early analysis of the                   relative’s house, and 3 per cent switched from
most recent Health Behaviour in School-aged                       private to public schools.
Children (HBSC) survey (2014) on the behaviour of
                                                                  The children surveyed were perceptive about other
11-, 13- and 15-year-old students in Greece, one of
                                                                  consequences of the recession, such as increased
the countries most affected by the recession. The
                                                                  stress on parents from income cuts or job losses.
results are instructive.
                                                                  These events affect family relationships, as seen in
Despite the best efforts of families to insulate their            the large share (as high as 27 per cent) of those
offspring from the worst consequences of the                      reporting tension and fights within their families. The
recession, school children in Greece revealed that                proportion of children reporting high satisfaction with
they are highly aware of problems that affect their               relationships within the family dropped by 3 per cent
immediate context. Those reporting that their                     between 2006 and 2014. As for their overall life
family’s economic situation is ‘not well off’ doubled             satisfaction, the share of children reporting a high
from 7.2 per cent in 2006 to 14.5 per cent in 2014.               quality of life dropped by almost 10 per cent over the
An increasing share of them said that the economic                same period.
situation of the area where they live had worsened
(from 22.2 per cent to 29.5 per cent in the same
                                                                  i
period).i In 2014, more than one child in five reported            Kokkevi, A., M. Stavrou, E. Kanavou and A. Fotiou.
                                                                  ‘The Repercussions of the Economic Recession in
that at least one parent had lost their job, 5 per cent
                                                                  Greece on Adolescents and their Families’, Innocenti
said their family could not afford to buy food, and               Working Paper No. 2014-07, UNICEF Office of
almost 30 per cent reported that the family had                   Research, Florence, 2014.

   Figure 8 Children’s self-reporting of the effects of the crisis in Greece

    at least one parent lost job                                                                 21.3

           inability to buy food                      5.4

         no vacation/travelling                                                                                  27.9

              stopped tutoring                                    10.5

               changed school                 3

          moved to other area                               8.2

                 family tension                                                                                  27.3

                                   0              5          10             15          20              25              30
                                                                         Per cent

   Source: 2014 HBSC survey.

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