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assume that total household income (i.e., all social transfers and
BTST income from all members) is equally shared. Thus, the
composition of household members determines to a large extent
the total market income and social transfers a household may
receive. In addition, decomposition analysis assumes that the effect
of a change in one factor can be analyzed while all other factors are
held constant, when realistically, the other factors would also
change. For example, an increase in income inequality may prompt
people at the bottom of the income distribution to move in with
other family members. Alternately, an increase in social welfare
programs aimed at young adults may permit them to live
independently. Thus, both systematic changes and human agency
in dynamic societies mean that decomposition analysis can offer
only a partial picture of the determinants of poverty.
Nevertheless, this research makes important contributions to
our understanding of youth poverty in the following ways. This
study is the first to decompose the contributions of structural
factors to international variations in youth poverty. This study
estimates the roles of the market, families, and social provisions in
buffering poverty for young adults in different countries. For
example, the high poverty risk of young Scandinavian adults
because of their early independence and low BTST income is offset
by more generous social provisions; but in East Asia, the
prevalence of intergenerational coresidence compensates for
limited social provisions. These findings are essential empirical
evidence for policy makers to more adequately respond to the
economic predicaments that young adults encounter.
In addition, this research extends the scope of previous
comparative studies of youth poverty to include Japan, South
Korea, and Taiwan and maximizes the variations in poverty
patterns, welfare systems, and market income poverty. While most
international studies of youth poverty are focused on young adults
in the West, this study concentrates on Taiwan and shows precisely
where the financial support for young adults lies in varying social