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Who Stays Poor? Who Becomes Poor? Evidence from the British Household Panel Survey

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Author Info
Lorenzo Cappellari (University of Essex)
Stephen P. Jemkins (University of Essex)

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Abstract

We estimate a first-order Markov model of poverty persistence and entry rates for working-age Britons and demonstrate the importance of controlling for endogenous selection via initial poverty status and attrition. Predicted poverty transition rates reveal substantial heterogeneity in poverty transition rates, but there is also substantial genuine state dependence in poverty. Copyright Royal Economic Society 2002.

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Publisher Info
Article provided by Royal Economic Society in its journal Economic Journal.

Volume (Year): 112 (2002)
Issue (Month): 478 (March)
Pages: C60-C67
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Handle: RePEc:ecj:econjl:v:112:y:2002:i:478:p:c60-c67

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  1. Arulampalam, Wiji & Booth, Alison L & Taylor, Mark P, 2000. "Unemployment Persistence," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 24-50, January.
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  1. Michael Fertig & Marcus Tamm, 2007. "Always Poor or Never Poor and Nothing in Between? Duration of Child Poverty in Germany," RWI Discussion Papers 0056, Rheinisch-Westfälisches Institut für Wirtschaftsforschung. [Downloadable!]
    Other versions:
  2. Francesco Devicienti & Valentina Gualtieri, 2007. "The Dynamics and Persistence of Poverty: Evidence from Italy," LABORatorio R. Revelli Working Papers Series 63, LABORatorio R. Revelli, Centre for Employment Studies. [Downloadable!]
  3. Heshmati, Almas, 2004. "A Review of Decomposition of Income Inequality," IZA Discussion Papers 1221, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Glauben, Thomas & Herzfeld, Thomas & Wang, Xiaobing, 2006. "The Persistence of Poverty in Rural China: Applying an Ordered Probit and a Hazard Approach," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25249, International Association of Agricultural Economists. [Downloadable!]
  5. Coral del Río & Carlos Gradín & Olga Cantó, 2006. "What helps households with children in leaving poverty? Evidence from Spain," Working Papers 24, ECINEQ, Society for the Study of Economic Inequality. [Downloadable!]
  6. Rafael Perez Ribas & Ana Flávia Machado & André Braz Golgher, 2006. "Fluctuations and persistence in poverty: a transient-chronic decomposition model for pseudo-panel data," Textos para Discussão Cedeplar-UFMG td290, Cedeplar, Universidade Federal de Minas Gerais. [Downloadable!]
  7. Thor Olav Thoresen, 2009. "Income Mobility of Owners of Small Businesses when Boundaries between Occupations are Vague," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  8. Van Kerm, Philippe, 2004. "Une évaluation économétrique des flux vers et hors de la pauvreté en Belgique," IRISS Working Paper Series 2004-04, IRISS at CEPS/INSTEAD. [Downloadable!]
  9. Ana Flávia Machado & Rafael Perez Ribas, 2008. "Do Changes in the Labour Market Take Families out of Poverty? Determinants of Exiting Poverty in Brazilian Metropolitan Regions," Working Papers 44, International Policy Centre for Inclusive Growth. [Downloadable!]
  10. Sung-Hee Jeon, 2003. "The Impact of Lifecycle Events on Women’s Labour Force Transition: a Panel Analysis," Department of Economics Working Papers 2003-01, McMaster University. [Downloadable!]
  11. Anna Giraldo & Enrico Rettore & Ugo Trivellato, 2002. "The persistence of poverty: true state dependence or unobserved heterogeneity? Some evidence from the Italian Survey on Household Income and Wealth," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 B2-1, International Conferences on Panel Data. [Downloadable!]
  12. Rafael Perez Ribas & Ana Flávia Machado, 2007. "Distinguishing Chronic Poverty from Transient Poverty in Brazil: Developing a Model for Pseudo-Panel Data," Working Papers 36, International Policy Centre for Inclusive Growth. [Downloadable!]
  13. Ambra Poggi, 2007. "Does persistence of social exclusion exist in Spain?," Journal of Economic Inequality, Springer, vol. 5(1), pages 53-72, April. [Downloadable!] (restricted)
    Other versions:
  14. Hansen, orgen & Wahlberg, Roger, 2004. "Poverty Persistence in Sweden," IZA Discussion Papers 1209, Institute for the Study of Labor (IZA). [Downloadable!]
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