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Who are the chronic poor? An econometric analysis of chronic poverty in germany

In: Dynamics of Inequality and Poverty

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  • Martin Biewen

Abstract

Based on a multiple spells approach, this paper studies the extent and the composition of chronic poverty in Germany. The results indicate that about one-third of cross-sectional poverty in a given year is chronic. The characteristics that are most closely associated with long-term poverty are economic inactivity and pensioner status, while the number of children and the gender of the household head do not seem to have a systematic effect. This is in contrast to cross-sectional results where the biggest poverty risk is usually unemployment and a large number of children, while pensioners do not face particularly high poverty risks. Estimates from a multiple spells hazard model further suggest that 6% of the population have unobserved characteristics that lead to low poverty exit and high re-entry rates, making these individuals likely candidates for chronic poverty. A comparison with results for Great Britain and the United States suggests that poverty is less persistent in Germany.

Suggested Citation

  • Martin Biewen, 2006. "Who are the chronic poor? An econometric analysis of chronic poverty in germany," Research on Economic Inequality, in: Dynamics of Inequality and Poverty, pages 31-62, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:reinzz:s1049-2585(06)13002-1
    DOI: 10.1016/S1049-2585(06)13002-1
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    Cited by:

    1. Esperanza Vera‐Toscano & Heather Brown, 2022. "Empirical Evidence on the Incidence and Persistence of Energy Poverty in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 55(4), pages 515-529, December.

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