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Estimating poverty persistence in Britain

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  • Francesco Devicienti

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Abstract

This paper uses longitudinal data from the BHPS, waves 1-8, to document low-income dynamics and persistence for individuals living in Britain in the 1990s. Poverty exit and re-entry rates are estimated and the resulting distribution of time spent in poverty is calculated, both in single and in multiple-spells frameworks. Following Stevens (1999), I estimate a multiple-spell model of transitions in and out of poverty, controlling for observed and correlated unobserved individual heterogeneity and for a potential initial condition problem. Both hazard rate and components-of- variance models are used to predict the number of years in poverty for various subgroups of the populations.

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File URL: http://hdl.handle.net/10.1007/s00181-010-0350-2
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Bibliographic Info

Article provided by Springer in its journal Empirical Economics.

Volume (Year): 40 (2011)
Issue (Month): 3 (May)
Pages: 657-686

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Handle: RePEc:spr:empeco:v:40:y:2011:i:3:p:657-686

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Related research

Keywords: Poverty persistence; Hazard models; Multiple spells; Unobserved heterogeneity; Variance-components models; I32; C33; C41;

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References

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