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Longitudinal Measures Of Poverty: Accounting For Income And Assets Over Time

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  • Patricia Ruggles
  • Roberton Williams

Abstract

This paper uses data from the Survey of Income and Program Participation to estimate durations of poverty spells and to determine whether temporarily poor families have sufficient assets to cover the shortfall of their incomes below poverty—their personal poverty gaps. If poverty is measured using monthly rather than annual income data, four times as many persons enter poverty, but most spells are short: the median duration is between four and six months. More than one‐third of all poverty spells are eliminated if financial assets are used to fill poverty gaps, but remaining poverty spells are longer. Separate estimates are made for the elderly and for families with children.

Suggested Citation

  • Patricia Ruggles & Roberton Williams, 1989. "Longitudinal Measures Of Poverty: Accounting For Income And Assets Over Time," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 35(3), pages 225-243, September.
    • Handle: RePEc:bla:revinw:v:35:y:1989:i:3:p:225-243
    DOI: 10.1111/j.1475-4991.1989.tb00591.x
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    Cited by:

    1. E. J. Bird & P. A. Hagstrom & R. Wild, "undated". "Credit Cards and the Poor," Institute for Research on Poverty Discussion Papers 1148-97, University of Wisconsin Institute for Research on Poverty.
    2. Wujing Wang & Xingqing Ye, 2020. "The Potential Supply and Demand of Farmers’ Land Contract Rights-Based on 697 Households in Four Provinces of China," Land, MDPI, vol. 9(3), pages 1-21, March.
    3. Francisco Azpitarte, 2014. "Measurement and Identification of Asset-Poor Households: A Cross-National Comparison of Spain and the United Kingdom," LWS Working papers 17, LIS Cross-National Data Center in Luxembourg.
    4. Schluter, C, 1996. "On the Non-Stationarity of German Income Mobility (and Some Observations on Poverty Dynamics)," Economics Working Papers eco96/35, European University Institute.
    5. Joan R Rodgers & John L Rodgers, 1991. "The Measurement of Chronic and Transitory Poverty: with Application to the United States," Economics Working Paper Archive wp_55, Levy Economics Institute.
    6. Francisco Azpitarte, 2010. "Measuring poverty using both income and wealth: A cross-country comparison between the U.S. and Spain," Working Papers 153, ECINEQ, Society for the Study of Economic Inequality.
    7. Marchand, J. & Smeeding, T., 2016. "Poverty and Aging," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 905-950, Elsevier.
      • Marchand, Joseph & Smeeding, Timothy, 2016. "Poverty and Aging," Working Papers 2016-11, University of Alberta, Department of Economics, revised 20 Nov 2016.
    8. Asena Caner & Ed Wolff, 2002. "Asset Poverty in the United States, 1984-1999: Evidence from the Panel Study of Income Dynamics," Microeconomics 0209002, University Library of Munich, Germany.
    9. Francisco Azpitarte, 2014. "Measuring Poverty using both Income and Wealth: A Cross-Country Comparison between the U.S. and Spain," LWS Working papers 18, LIS Cross-National Data Center in Luxembourg.
    10. Peter Krause & Bruce Headey, 1995. "Rich and Poor: Stability or Change?: West German Income Mobility 1984-93," Discussion Papers of DIW Berlin 126, DIW Berlin, German Institute for Economic Research.
    11. Nolan, Brian & Callan, Tim & Whelan, Christopher T. & Williams, James, 1994. "Poverty and Time: Perspectives on the Dynamics of Poverty," Research Series, Economic and Social Research Institute (ESRI), number GRS166, June.
    12. Ravallion, Martin & van de Walle, Dominique & Gautam, Madhur, 1995. "Testing a social safety net," Journal of Public Economics, Elsevier, vol. 57(2), pages 175-199, June.
    13. Theresa Köhler, 2016. "Income and Wealth Poverty in Germany," SOEPpapers on Multidisciplinary Panel Data Research 857, DIW Berlin, The German Socio-Economic Panel (SOEP).
    14. Baorong Guo, 2011. "Household Assets and Food Security: Evidence from the Survey of Program Dynamics," Journal of Family and Economic Issues, Springer, vol. 32(1), pages 98-110, March.
    15. Colleen Heflin, 2016. "Family Instability and Material Hardship: Results from the 2008 Survey of Income and Program Participation," Journal of Family and Economic Issues, Springer, vol. 37(3), pages 359-372, September.
    16. Asena Caner & Edward N. Wolff, "undated". "Asset Poverty in The United States: Its Persistence in an Expansionary Economy," Economics Public Policy Brief Archive ppb_76, Levy Economics Institute.
    17. Francisco Azpitarte, 2011. "Measurement and identification of asset-poor households: a cross-national comparison of Spain and the United Kingdom," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(1), pages 87-110, March.
    18. Iceland, John & Bauman, Kurt J., 2007. "Income poverty and material hardship: How strong is the association?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(3), pages 376-396, June.
    19. Francisco Azpitarte, 2008. "Measurement and Identification of Asset-Poor Households: A Cross-National Comparison of Spain and the United Kingdom," Working Papers 105, ECINEQ, Society for the Study of Economic Inequality.
    20. Kimberly Bolch & Luis F. Lopez‐Calva & Eduardo Ortiz‐Juarez, 2023. "“When Life Gives You Lemons”: Using Cross‐Sectional Surveys to Identify Chronic Poverty in the Absence of Panel Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(2), pages 474-503, June.
    21. Okrasa,Wlodzimierz, 1999. "The dynamics of poverty and the effectiveness of Poland's safety net (1993-96)," Policy Research Working Paper Series 2221, The World Bank.

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