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Policy responses Overcoming Factors in the Intergenerational Transmission of Inequalities

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Research conducted in eight European medium size towns (Pernik/BG, Giessen/DE, Parnu/EE, Pori/FI, Rovig/IT, Jonava/LH, Tomaszów Maz./PL, Loughborough/GB) covering young adults (25-29 years of age) provided evidence that every second respondent originated in the low economic status family follows the path of his/her parents. Among those born into the high economic status family more than every third has high economic status him/herself. This occurs despite high intergenerational mobility in this age group. However, substantial upward economic mobility among those who grew up in poor families as well as substantial downward economic mobility among those who grew up in high economic status families is very rare. The risk of intergenerational inheritance of inequalities is also well documented when probability of pursuing of low economic status (poverty) is compared with probability of becoming poor among those young adults growing up in families with decent and high economic status.
Countries (BG, DE, EE, FI, IT, LH, PL, UK) in the study represent different social welfare regimes and thus different patterns of poverty and social problems that can contribute to intergenerational inheritance of inequalities. Data provide evidence that economic standing of the country is not a decisive factor contributing to the risk of inheritance of inequalities in the "old" EU. Policy and particular educational, labour market and welfare policies matter as well. Countries differ substantially as regards age cohorts being most vulnerable to the risk of poverty. If it is children, the risk of IIofI is more predictable. Among affluent countries in the study, Finland and Germany seem to protect citizens against poverty/inequality transmission best, while Italy - worst. In Finland there are particular people and families which may be affected by inequality inheritance. In Germany there are pockets of poverty inhabited by immigrants who are most vulnerable to the risk of poverty transmission. Among new member states that are poor countries with widespread poverty the risk of inequality transmission is high. In these countries, the risk of poverty for children is high, spending on children is relatively low and social transfers are not generous enough to reduce the risk of poverty among youngsters. In Poland and Lithuania the situation is the worst because of low employment rate.
Disaggregation of statistical data is needed to support local policy to counteract IIofI, as underlined by local stakeholders. Local governments suffer from scarcity of statistical data on incidence of social problems and quality of life of their citizens. This makes municipalities "blind" and acts intuitively. No sufficient data and no common indicators that could serve as basis for developing indexes measuring social deprivation are accessible in particular towns. It makes comparisons between municipalities within the same country and within European Union quite impossible. Unification of collected data and indicators used at the international level (EUROSTAT, multinational surveys like European Social Survey, International Social Survey Programme) was not followed by similar process at the level of communities. In this respect, Great Britain is exceptional. British way of collecting data in small, newly created statistical units - Super Output Areas and Index of Multiple Deprivation as a tool for measuring social exclusion in multidimensional approach should be promoted by the European Union as good example for elaborating sufficient and reliable social diagnosis which could serve as basis for developing any kinds of measures and strategies to counteract social problems.
Improved coordination between national and local level of administration and between sectors (public, private, non-governmental) is believed an effective way of counteracting of IIofI. Division of responsibility between central and local government as regards solutions to social problems is a subject of criticism regardless of a practised level of decentralization in a given country. It is claimed that money to counteract intergenerational inheritance of inequalities/poverty would be spent more effectively if municipalities were permitted to define eligibility criteria by themselves and tailor measures to meet specific local needs. In order to implement social policy measures more effectively vertical and horizontal cooperation between institutions and coordination of various measures should be improved. Vertical cooperation refers to the relationships between different levels of administration ¿ central government and local government. Horizontal cooperation refers to the institutions operating on the local level in various spheres: education, labour market, social and health services, NGOs operating at the local level and departments of social affairs in public administration. Sufficient collaboration between these sectors and reliable diagnosis of social problems allows, according to respondents, to develop and implement holistic actions aimed at those endangered with transmission of poverty and social inequalities.
Interviewed top- level policy makers perceive inequality reproduction rather as a "private" transmission occurring between parents and their children and suffered by particular families. Effects on the society as a whole are rather neglected. Educational policy is perceived decisive and at the same time two-edged. It can improve equal opportunities as well as worsen mobility chances of people originated from low status families when expelling them from school instead of supporting. Local stakeholders are aware that inheritance of inequalities poses a challenge for the whole community. They are more specific and possess knowledge about various factors impacting process of inequality reproduction in a given town, including those at micro, meso and macro level. They point also out concrete reasons why it is difficult to counteract this phenomenon effectively. Insufficient diagnosis of social problems resulting from scarcity of reliable data hampers well-targeted and effective actions aimed at people at risk, and so does the fragmentation of policies and the lack of long-term programs, caused by inadequate funding and improper redistribution of resources. They are able to provide good practice examples and explain what works and what does not.
Profit project provided opportunity for researchers to work together with practitioners in municipalities. It was case studies that allowed deeper insight into some concrete and narrowly defined research problem being a process of IIofI. It was sensitive to complexity, heterogeneity and particularity of individual cases. Profit project was also an "action research", as the final outcome of the project was not just knowledge produced and deep insight into the nature of the social phenomenon, but also elaborating recommendations. Research findings were presented to local authorities and stakeholders in each town to get feedback and discuss examples of best practices of locally based actions. Discussions with councillors and other local stakeholders showed that the issue of combating intergenerational transmission of inequalities could be defined as problem-based learning. The process of change from acting individually to creating working collectives aimed at IIofI counteracting is not easy and for stakeholders it is essential to develop understanding of the new learning and practices before these practices can be successfully applied.

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