SILC Module on the Impact of Childhood Poverty Experiences on Adult Life 2023

Analysis of respondents' current income quintiles and employment status by variables that reflect circumstances of the households they grew up in further corroborates that childhood poverty is intrinsically linked to disadvantages in adulthood. Past research has shown that education and income is an influential demographic characteristic in the transfer of advantages and disadvantages across generations (See ESRI report on Intergenerational Poverty in Ireland).

Distribution of equivalised income

Equivalised income allows for a more meaningful comparison of income across households by accounting for the number of adults and children living in the household, thus allowing for analysis at an individualised level. However, when analysing by individual characteristics, it should be borne in mind that equivalised income is influenced by the income of all household members. See At Risk of Poverty Indicators Explained (PDF 1,094KB) . 

An individual is deemed to be in the bottom income quintile if their income (which includes social welfare income) places them in the bottom 20% of the population by way of income. 

Analysis of income quintiles of respondents aged 25-59 in SILC 2023 by the level of education achieved by their parents indicates that those whose parents had higher levels of education were more likely to be in the top income quintile in adulthood and those whose parents had lower levels of education were more likely to be in the bottom income quintile (See Figure 3.1 and PxStat Table SID18). 

Of respondents whose parents had a low level of educational attainment (lower secondary or below), over one in four (26.2%) were in the lowest income quintile, compared with one in ten (9.7%) whose parents had a third level education.  

Of those whose parents had a third level education, one in three (33.4%) were in the highest income quintile, almost double the rate (17.0%) for those whose parents had a low level of educational attainment (See Figure 3.1 and PxStat Table SID18). 

Additionally, bad financial circumstances during childhood were associated with being in the lower income quintile as an adult. Almost three in ten (28.4%) respondents who experienced bad financial circumstances as a teenager were in the first income quintile in SILC 2023. In comparison one in ten (11.1%) respondents who experienced good financial circumstances as a teenager were in the first income quintile (See Figure 3.2 and PxStat Table SID19).

Individuals who had parents in work as a teenager more likely to be working in adulthood

Work status

Looking at the influence of working parents during childhood on the current work status of respondents in SILC 2023 shows that, of respondents who reported growing up in a household where no parent worked, almost half (47.7%) were not working in 2023. Respondents who lived in households where one or both parents worked were more likely to be working in 2023. Almost two in ten (19.9%) respondents who grew up in a household where one parent worked were not working in 2023 and 14.6% who grew up with both parents working were not working in 2023 (See Figure 3.3 and PxStat Table SID20). 

Another significant factor impacting the work status of respondents aged 25-59 in SILC 2023 was the perception of the household financial situation during their childhood. Of those who rated the financial circumstances of their teenage home as bad or very bad, one quarter (25.2%) were currently not working. In comparison, 15.7% of those who lived in good financial circumstances as a teenager were not working in 2023 (See Figure 3.4 and PxStat Table SID21).