Increasing work intensity to improve economic well-being: an analysis across European countries

Abstract This paper examines the impact of year-to-year increases in work intensity on economic well-being across European countries. Work intensity may rise through an increased number of months worked or the exit of dependent adult children. This study examines the differences between these two mechanisms. Both objective and subjective economic well-being are considered, namely, income levels and perceived ability to make ends meet. The analysis draws on 2010–2019 EU-SILC longitudinal data, focusing on individuals in households with adult children. It shows that, as work intensity increases from one year to the next, improvements in objective economic well-being are generally greater than those in subjective economic well-being. Both mechanisms are found to be relevant in improving income levels, especially if they occur simultaneously. The exit of dependent adult children proves effective in improving the perceived ability to make ends meet in some countries, but not all. Investing in quality employment could thus offer dual advantages, supporting young adults’ transition to adulthood and improving their parents’ economic well-being. In Southern European countries, households struggle to boost their work intensity from one year to the next, yet increased work intensity has a substantial impact on improving economic well-being there.