The specifics of the problem of working poverty in the context of food security

Abstract

The article is devoted to the study of the relationship between issues of food security and the problem of poverty, in particular, the poverty of the working population. The main features of poverty in Kazakhstan are identified and the factors that form the poverty of the working-age population are considered. Based on the analysis of the sectoral structure of employment, conclusions are drawn about the increased risk of spreading working poverty among the population of the Republic of Kazakhstan due to unemployment, reduced working hours, low labor productivity, the influx of labor resources in industries with low added value and low wages. The importance of creating favorable conditions for sustainable economic development and reducing income inequality among the working population is emphasized. Understanding the link between poverty and food insecurity will contribute to the development and implementation of a systemic social policy that ensures fair wages, as well as a socially equitable distribution of resources in society.

Full text

01012
The specifics of the problem of working poverty
in the context of food security
Zhibek Khussainova1, Nesip Yeskendir1, Nikolay Penev2, and Iskra Nencheva2*
1 Karaganda University of the name of academician E.A. Buketov, 28 Universitetskaya Street, 100024
Кaraganda, Kazakhstan
2 Trakia University, Faculty of Economics, Students town, 6000 Stara Zagora, Bulgaria
Abstract. The article is devoted to the study of the relationship between
issues of food security and the problem of poverty, in particular, the
poverty of the working population. The main features of poverty in
Kazakhstan are identified and the factors that form the poverty of the
working-age population are considered. Based on the analysis of the
sectoral structure of employment, conclusions are drawn about the
increased risk of spreading working poverty among the population of the
Republic of Kazakhstan due to unemployment, reduced working hours,
low labor productivity, the influx of labor resources in industries with low
added value and low wages. The importance of creating favorable
conditions for sustainable economic development and reducing income
inequality among the working population is emphasized. Understanding
the link between poverty and food insecurity will contribute to the
development and implementation of a systemic social policy that ensures
fair wages, as well as a socially equitable distribution of resources in
society.
1 Introduction
A key component of the country's national security, ensuring the preservation of statehood
and sovereignty, is to improve the quality of life of the population through guaranteeing
high standards of life support and ensuring food security. The country's food security
should be understood as such a resource state of the national economy, in which the
physical and economic accessibility of high-quality food products for each individual is
guaranteed, in volumes corresponding to established rational consumption standards
necessary for an active and healthy lifestyle.
At the same time, the problems of food security and malnutrition are closely interrelated
with social inequality and poverty. At the same time, a vicious circle is created when low-
income households are forced to use various survival strategies that lead to malnutrition and
have negative consequences for their nutrition, health and productivity, which preserves the
trap of poverty and social vulnerability for a long period.
* Corresponding author: iskra.nencheva@trakia-uni.bg
BIO Web of Conferences 114, 01012 (2024) https://doi.org/10.1051/bioconf/202411401012
ICABEE 2024
© The Authors, published by EDP Sciences. This is an open access article distributed under the terms of the Creative Commons Attribution
License 4.0 (https://creativecommons.org/licenses/by/4.0/).

In today's world, work is not always a reliable way to escape poverty. Contrary to the
generally accepted view that employment guarantees financial stability, there is a
phenomenon that remains out of focus: poverty among workers. This phenomenon, when
even with jobs, people cannot provide themselves and their families with a decent standard
of living, poses a serious challenge to economies and societies.
The relevance of the topic of poverty among workers remains at a high level in modern
society. Despite the constant development of the economy and the growth of the general
level of well-being, many workers still face financial difficulties. This phenomenon
highlights not only the inefficiency of economic models, but also the uneven distribution of
well-being.
In today's dynamic reality, changes in technology, job structure and skill requirements
make some groups of workers more vulnerable to the risk of poverty, even working in
permanent positions. Factors such as low pay, unstable work schedules, lack of social
guarantees and affordable medical care are just some of the problems faced by millions of
working people around the world.
Thus, an analysis of the problem of poverty among workers is not only necessary to
understand the current situation, but is also the key to developing effective strategies for
fighting for social justice and equal opportunities.
2 Materials and methods
The methodological basis of the study was the theoretical foundations of systems research.
Also, the dialectical method of cognition and a systematic approach that reveals the
possibilities of scientific research of socio-economic phenomena in the development of
their relationship and interdependence, methods of systematic analysis of perception
processes, median determination based on statistical data were used.
3 Literature review
The issue of poverty is undoubtedly one of high importance and vital issues that
attracts much attention locally and globally. Since the phenomenon of poverty
throughout history has always been associated with human social life, the problem of
arresting and helping the poor has a long history in human society. Every year,
countries strive to reduce poverty in their countries by measuring poverty indicators
and in this regard, the international community strives to play its role in eradicating
global poverty by implementing various policies and programs [1-5].
Internationally, poverty is widely understood in a multidimensional sense as a
deprivation of well-being across multiple dimensions, rather than simply a lack of
income or low consumption [6, 7].
The characteristics of poverty have significant implications for poverty analysis and
therefore must be specifically taken into account. The language of poverty reveals the
extent and severity of poverty in a community. It also allows poverty experts to
advocate for the dignity of people and minimize misconceptions about social poverty.
Finally, the language of poverty provides a contextual understanding of its meaning.
The multidimensional and complex nature of poverty determines the selection of an
appropriate poverty worldview for poverty analysis [8].
Labor market activity and gainful employment must be a key to protecting
individuals and families from poverty and providing them with sufficient resources to
meet the members’ needs [9-11].
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However, a sizable portion of households are unable to turn down a paid employment
and end up in a position known as "working poverty" as a result of numerous labor market
processes, the impact of personal variables, and frequently inadequate social capital [12].
Poverty is a phenomenon that reflects a certain status of a person in the system of economic
and social relations. In order to identify the content of economic relations regarding poverty
formation, one must consider the system of relations of human reproduction as a carrier of
labor force potential. Additionally, a person can act as a form of embodiment of capital (by
a capitalist) [13].
According to Zhou and Liu, The study of spatial patterns, distribution traits, territorial
kinds, the evolution of poverty, its relationship to the physical environment, and strategies
for mitigating it is known as poverty geography, a subfield of human geography [14].
Poverty as a social phenomenon exists in all countries of the world. Differences in its
definition and assessment are largely determined by the criteria for classifying citizens of a
particular state as poor. The works of domestic and foreign scientists [15-19] are devoted to
the study of various aspects and the concept of poverty. A new understanding and recent
measurement of poverty are well described by Selivanova and Razumov [20].
Baranova, Tarabanov in their studies consider poverty as “a marked decline in well-
being”, thus the economic state of an individual or group of individuals who fail to meet a
certain range of minimal needs necessary for a human life, preservation and improving
performance, as well as continuation and increase the number of descendants [21].
In recent decades, especially in the United States, has seen an increase in low-quality
jobs and unequal job distribution. A higher value of the job imbalance indices means that
there are a relatively large number of households with several people employed and
households with unemployed people. Likewise, low-quality jobs are those that fail to offer
full-time work. Bilateral fixed-effect models estimate that a more unequal distribution of
jobs across households exacerbates aggregate poverty at the state level [22]
Around the world [23-26], changes in labor markets pose challenges to social inclusion
through employment. The expansion of insecure, precarious and low-quality forms of
employment [27] is changing inequalities in the labour world. It is the in-work poor,
employed people living in households with incomes below the poverty line, that reflect one
of the constraints that employment faces to guarantee decent living conditions. The ILO
emphasizes that, given the unstable global economic situation, decent work deficits have
worsened. [29]
Despite growing awareness of the “revival” of working poverty, the topic remains
relatively under-researched. There are good reasons to believe that working poverty may
become a more pressing problem in the nearest future, and social policy researchers will
need good theoretical frameworks and robust perspective strategies in assessment. [29].
Low work intensity and high job insecurity are the most important micro-determinants
of working poverty. Importantly, they can also affect subjective poverty in households
above the poverty threshold [30]. The growth in research on in-work poverty is conditioned
by a growing evidence that the benefits of the 1990 economic growth were shared
unequally among wage earners and, until recently, did not lead to a reduction in overall
poverty rates. This was especially true in the first half of the decade, for the bottom 20% of
the wage scale the workers earned about 10 times less than for the top 20%, and in fact their
real wages fell steadily by an average of 0.9% per year [31].
The complexity and ambiguity of the phenomenon of “in-work poverty” justifies the
relevance of a comprehensive study of this phenomenon. The working poor are people of
working age, in the prime of life and potential, who have received specialized (most often
higher) education and the necessary qualifications, most often have a permanent place of
work, but receive inadequately low wages for their work.
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4 Results
While economic growth is the main tool for combating poverty in market economies, this
growth must be ensured by high-quality and sustainable incentives: increasing the
productivity of production factors, especially labor. Moreover, low inflation levels increase
real incomes of the population and contribute to the growth of their well-being. The current
situation with high state participation in the economy distorts market mechanisms and
impedes sustainable and long-term growth, as well as effective control of inflation [32-33].
The mechanism of income redistribution in the form of social support from the state lacks
sufficiently covers the entire part of the population in need and therefore also reduces the
effectiveness of the state’s fight against poverty.
Currently, we can observe that the level of poverty in many regions of Kazakhstan is
growing yearly. According to the World Bank, the poverty rate outside the city in
Kazakhstan could rise to 12-14%. If the difference in poverty levels across regions in the
state tends to grow, this could lead to high social inequality, an economic crisis, increased
mortality and other serious problems [34].
According to the Bureau of National Statistics of the Agency for Strategic Planning and
Reforms of the Republic of Kazakhstan, the share of the population with incomes below the
subsistence level in 2022 was 5.2% [35].
The highest poverty levels by region in 2022 were recorded in Turkestan (9.7%) and
Mangistau (8.1%) regions, the lowest in Astana (1.9%).
Fig.1. Share of the population with incomes below the subsistence level by region, in percentage
[35].
Significant income differentiation between urban and rural residents has remained.
Thus, in urban areas the share of the population with incomes below the subsistence level
was 4%, and in rural areas comprises 7.3%. The largest difference between the level of
urban and rural poverty in 2021 was observed in Mangistau (5.4 times higher) and East
Kazakhstan (4 times higher) regions.
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5
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ly, targeted s
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t
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mbination wi
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is is a very s
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s
ight into their
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ublic of Kaz
a
n
in such are
a
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n services;
a
e
conomic-geo
g
r
k poverty gro
u
n
omic fields
w
o
account the
p
e
rs, based on
t
r
” in Kazakhs
e
conomy, rece
i
the share of
t
u
s production
f
0
22.
c
ash expenditur
e
ng poverty is
r
oeconomic st
a
w
orth noting
increase in th
e
n
centives and
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v
ing. Therefor
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n
s for macroec
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mplex syste
m
m
ent of vario
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nding on the
t
50,419 tenge
e
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g
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cial assistanc
e
t
he amount of
t
h complex pr
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s truly in ne
e
u
perficial over
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shortcomings.
a
l assistance a
n
a
khstan, acco
r
a
s as educati
o
a
nd the distri
b
g
raphical con
d
u
p is tradition
a
w
ith low inco
m
p
eculiarities o
f
t
he absolute a
p
tan can be de
i
ving less tha
n
t
he working p
o
f
acility) data,
w
e
s [35].
increasing th
e
a
bility, which
i
that econom
i
e
productivity
o
o
pportunities
f
e
, the primar
y
o
nomic stabili
t
m
for supporti
n
u
s social ben
e
t
arget group.
T
per month,
w
g
e. However,
o
e
, which is de
s
6,712 tenge p
e
ocedures for
o
e
d still remai
n
v
iew of the m
a
We have aim
e
n
d share the r
e
r
ding to exper
o
n, healthcare,
b
ution of the
d
itions and reg
i
a
lly comprise
d
m
e
f
the assessme
n
p
proach of th
e
fined as thos
e
n
2/3 of the m
e
o
or in the Re
p
w
as 33.7% in
2
e
well-
b
eing
o
i
mplies econo
m
i
c growth m
u
o
f production
f
f
or the popula
t
y
task of the
t
y.
n
g socially vu
l
e
fits. Howeve
r
T
o illustrate, s
u
w
hile large fa
m
o
ther types o
f
s
igned to com
b
e
r month, whi
c
o
btaining the r
e
n
s insufficientl
y
a
in support to
o
e
d to conduct
a
e
sults in publi
c
t
sociologists,
agriculture,
c
number of
i
onal character
d
by females
w
n
t base of OP
P
e
ILO and so
m
e
employed w
o
e
dian taxable
l
p
ublic of Kaza
k
2
020, 32.9% i
n
o
f the populat
i
m
ic growth a
n
u
st be high-q
u
f
actors. Speci
f
t
ion to increas
e
state in erad
i
l
nerable citize
n
r
, the scope
o
u
rvivor and dis
a
m
ilies, regardl
f
social gove
r
b
at poverty. In
c
h is 6.5 times
elevant assist
a
y covered by
o
ls, but never
t
a
detailed anal
y
c
ations in the
in-work pov
e
c
ulture and a
r
in-work pov
e
r
istics.
w
ho are more t
e
P
(obligatory p
e
m
e EU countri
e
o
rkers in the
f
l
abor income.
k
hstan, accor
d
n
2021, and it
e
i
on by
n
d low
q
uality,
f
ically,
e
their
i
cating
n
s, the
o
f this
ability
ess of
r
nment
2022,
lower
a
nce, a
social
t
heless
y
sis of
future
e
rty is
r
t, and
e
rty is
e
nding
e
nsion
e
s, the
f
ormal
Using
d
ing to
equals
6
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Table 1. Median income from labor activity and the share of “working poor” in the Republic of
Kazakhstan by foreign trade activity.
FTA The median income The share of working poor
2020 2021 2022 2020 2021 2022
Totally 142718 165816 204149 33.7% 32.9% 34.3%
Agriculture, Forestry and
Fisheries
108464 106893 135616 36.9% 22.7% 31.5%
Mining and quarrying 319715 322447 420272 33.3% 29.7% 32.7%
Manufacturing industry 181345 200893 248631 29.6% 28.6% 30.7%
Electricity, gas, steam, hot
water and air conditioning
143573 162245 200533 24.3% 26.1% 27.0%
Water supply; waste
management, pollution
management
115364 128726 147693 19.9% 23.0% 24.4%
Construction 197899 230201 295516 29.5% 29.9% 31.5%
Wholesale and retail trade;
repair of cars and
motorcycles
145067 158067 184921 34.0% 35.6% 36.9%
Transportation and
warehousing
172159 189879 249136 17.4% 24.4% 24.9%
Accommodation and food
services provision
214417 189082 173814 30.7% 29.0% 39.3%
Information and
communication
200156 218424 255192 27.9% 28.9% 30.6%
Financial and insurance
activities
219239 248888 315668 29.1% 30.6% 32.3%
Real estate operations 142301 102004 197448 29.2% 33.4% 35.8%
Professional, scientific and
technical activities
186769 204677 246448 35.0% 36.6% 36.8%
Activities in the field of
administrative and support
services
107713 117250 140140 20.6% 26.3% 23.6%
Public Administration and
Defense; compulsory social
security
128589 144394 181525 29.9% 27.8% 27.8%
Education 125918 155597 193119 18.6% 22.5% 33.2%
Healthcare and social
services
131461 163324 194661 29.1% 28.9% 29.9%
Arts, entertainment and
recreation
113954 119129 133719 39.2% 32.6% 30.0%
Provision of other types of
services
212641 206871 245189 38.1% 34.6% 37.3%
The results of constructing and analyzing average values and estimated indicators in
2020 show that on average in the country the median taxable income from labor activity
was 142,718 tenge. According to the ILO absolute approach, the taxable labor income of
the “working poor” was within the range of 95,145 tenge.
As a result, the approach to assessing labor income based on the HPF base enables to
cover about 56.2% of those employed in the economy. Taking into account this approach to
analysis, the “in-work poverty” in the Republic of Kazakhstan can be defined as workers
employed in the formal sector of the economy and making tax payments to the budget on
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income from work within 2 minimum wages. At the same time, their estimated share in the
Kazakhstani labor market is about 40%. Based on the study, in the regions of the republic it
is necessary to introduce correction factors due to various reasons for the differentiation of
labor income, based on the characteristics of the labor market and the standard of living of
the population.
5 Conclusions
The rejection of Soviet approaches, liberalization of the labor market, and the adoption of
the new Labor Code in 2015 was disaccompanied by a transformation of the wage system.
As a result, it continues to be built on the basis of basic salaries, rates and other Soviet
standards with the introduction of new coefficients and similar mechanisms. And since the
budget requires optimization, and a direct revision of wage parameters, it is associated with
time and material costs. It is favorable to approach the problem at the macro level so to
introduce labor standards, index the minimum wage, etc. It causes more difficulties to
review the labor parameters of each area of economic activity, since information on wages
is often confidential and not available to trade unions, and the actions of labor inspectorates
are limited, which is motivated by supporting the development of the business sector.
Therefore, the risk of arbitrariness on the part of employers, dictated by the aim to
maximize profits, which in a pandemic exacerbates the problem of the “in-work poverty”
and there is a great potential for protest.
Thus, one of the key ways to ensure food security is to combat systemic social
inequality in the income of the population, including eliminating the problem of working
poverty. Understanding the link between poverty and food insecurity will contribute to the
development and implementation of a systemic social policy that ensures fair wages, as
well as a socially equitable distribution of resources in society.
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