Scandinavian countries as well as Austria and the UK tend to have lower rates of persistent poverty and higher exit rates, while Bulgaria, Hungary, Italy, Latvia, Luxembourg and Spain tend to have higher rates of persistent poverty and lower exit rates. Children living in households that experience a drop in employee income of at least 5 per cent are significantly more likely to enter poverty in all countries except Bulgaria and France, where the effects are not significant. In contrast, there are no significant effects of relative increases in employee income anywhere but in Spain, where, predictably, they reduce the probability of moving into poverty.