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Poverty persistence in Britain: A multivariate analysis using the BHPS, 1991–1997

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  • Francesco Devicienti

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Abstract

This paper uses longitudinal data from the BHPS, waves 1-7, to document low-income dynamics for individuals living in Britain in 1990s. Poverty entry and exit hazard rates are estimated and used to calculate the distribution of time spent poor over a six-year period. The results underline the importance of accounting for individuals’ repeated spells of poverty when measuring poverty persistence. Using discrete-time proportional hazard rate models, the paper then seeks to ‘explain’ and forecast the observed chances of exit/entering poverty and the distribution of time spent in poverty for individuals with selected characteristics. The socio-economic correlates of the observed poverty patterns are investigated, including the relative importance of both household and individual characteristics.

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Bibliographic Info

Article provided by Springer in its journal Journal of Economics.

Volume (Year): 9 (2002)
Issue (Month): 1 (December)
Pages: 307-340

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Handle: RePEc:kap:jeczfn:v:9:y:2002:i:1:p:307-340

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Web page: http://www.springerlink.com/link.asp?id=108909

Related research

Keywords: Poverty Dynamics; Poverty Persistence; Multiple Spells; Hazard Rate Models; I32; I31;

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References

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  1. Ann Huff Stevens, 1999. "Climbing out of Poverty, Falling Back in: Measuring the Persistence of Poverty Over Multiple Spells," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 557-588.
  2. repec:ese:iserwp:99-01 is not listed on IDEAS
  3. Bruce D. Meyer, 1988. "Unemployment Insurance And Unemployment Spells," NBER Working Papers 2546, National Bureau of Economic Research, Inc.
  4. Burgess, Simon & Propper, Carol, 1998. "An Economic Model of Household Income Dynamics, with an Application to Poverty Dynamics among American Women," CEPR Discussion Papers 1830, C.E.P.R. Discussion Papers.
  5. repec:ese:iserwp:99-04 is not listed on IDEAS
  6. Lillard, Lee A & Willis, Robert J, 1978. "Dynamic Aspects of Earning Mobility," Econometrica, Econometric Society, Econometric Society, vol. 46(5), pages 985-1012, September.
  7. repec:ese:iserwp:2000-16 is not listed on IDEAS
  8. repec:ese:iserwp:2000-01 is not listed on IDEAS
  9. Xavier Ramos, 2003. "The Covariance Structure of Earnings in Great Britain, 1991-1999," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 70(278), pages 353-374, 05.
  10. Gottschalk, Peter & Moffitt, Robert A, 1994. "Welfare Dependence: Concepts, Measures, and Trends," American Economic Review, American Economic Association, vol. 84(2), pages 38-42, May.
  11. Jarvis, Sarah & Jenkins, Stephen P, 1998. "How Much Income Mobility Is There in Britain?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 108(447), pages 428-43, March.
  12. Böheim, René & Taylor, Mark P, 2000. "Unemployment Duration and Exit States in Britain," CEPR Discussion Papers 2500, C.E.P.R. Discussion Papers.
  13. Ondrich, Jan & Rhody, Stephen E., 1999. "Multiple spells in the Prentice-Gloeckler-Meyer likelihood with unobserved heterogeneity," Economics Letters, Elsevier, vol. 63(2), pages 139-144, May.
  14. Mary Jo Bane & David T. Ellwood, 1986. "Slipping into and out of Poverty: The Dynamics of Spells," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 1-23.
  15. René Böheim & Stephen P. Jenkins, 2000. "Do Current Income and Annual Income Measures Provide Different Pictures of Britain's Income Distribution?," Discussion Papers of DIW Berlin 214, DIW Berlin, German Institute for Economic Research.
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