Poverty and social exclusion: two sides of the same coin or dynamically interrelated processes?
AbstractThere is growing interest in the analysis and measurement of social exclusion, to complement the static and dynamic literature on income poverty. On theoretical grounds, social exclusion and income poverty are seen as different processes, but with closely interrelated dynamics. However, our empirical understanding of the way these two processes dynamically interact at the individual level is still very limited. To shed some light on the issue, we use a dynamic bivariate probit model, controlling for unobserved heterogeneity and Wooldridge (2005)-type initial conditions. Both first and second order Markov dynamics are examined. We estimate the model using the Italian sample of the ECHP, waves 1-8, and find a sizable extent of state dependence in both poverty and social exclusion. Moreover, there are dynamic cross-effects, implying that poverty and social exclusion are mutually reinforcing. Social policies aimed at eradicating poverty and avoiding individuals’ social and economic marginalization should take these interaction effects explicitly into account.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by LABORatorio R. Revelli, Centre for Employment Studies in its series LABORatorio R. Revelli Working Papers Series with number 62.
Length: 42 pages
Date of creation: 2007
Date of revision:
poverty dynamics; social exclusion; state dependence; dynamic bivariate probit model with random effects.;
Other versions of this item:
- Francesco Devicienti & Ambra Poggi, 2011. "Poverty and social exclusion: two sides of the same coin or dynamically interrelated processes?," Applied Economics, Taylor and Francis Journals, vol. 43(25), pages 3549-3571.
- I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-03-08 (All new papers)
- NEP-HAP-2008-03-08 (Economics of Happiness)
- NEP-SOC-2008-03-08 (Social Norms & Social Capital)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Joseph Deutsch & Jacques Silber, 2005. "Measuring Multidimensional Poverty: An Empirical Comparison Of Various Approaches," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(1), pages 145-174, 03.
- Tindara Addabbo, 2000. "Poverty Dynamics: Analysis of Household Incomes in Italy," LABOUR, CEIS, vol. 14(1), pages 119-144, 03.
- Lorenzo Cappellari & Stephen P. Jenkins, 2002.
"Modelling Low Income Transitions,"
Discussion Papers of DIW Berlin
288, DIW Berlin, German Institute for Economic Research.
- Francesco Devicienti & Valentina Gualtieri, 2004. "Dinamiche e persistenza della povertà in Italia: Un’analisi con microdati panel di fonte ECHP," LABORatorio R. Revelli Working Papers Series 34, LABORatorio R. Revelli, Centre for Employment Studies.
- Alessie, R.J.M. & Hochgürtel, S. & Soest, A.H.O. van, 2001.
"Ownership of Stocks and Mutual Funds: A Panel Data Analysis,"
2001-94, Tilburg University, Center for Economic Research.
- Rob Alessie & Stefan Hochguertel & Arthur van Soest, 2004. "Ownership of Stocks and Mutual Funds: A Panel Data Analysis," The Review of Economics and Statistics, MIT Press, vol. 86(3), pages 783-796, August.
- Alessie, Rob & Stefan Hochguertel & Arthur van Soest, 2002. "Ownership of Stocks and Mutual Funds: A Panel Data Analysis," Royal Economic Society Annual Conference 2002 3, Royal Economic Society.
- Alessie, R.J.M. & Hochgürtel, S. & Soest, A.H.O. van, 2004. "Ownership of stocks and mutual funds: A panel data analysis," Open Access publications from Tilburg University urn:nbn:nl:ui:12-140722, Tilburg University.
- BOSSERT, Walter & D'AMBROSIO, Conchita & PERAGINE, Vito, 2004.
"Deprivation and Social Exclusion,"
Cahiers de recherche
2004-01, Universite de Montreal, Departement de sciences economiques.
- Francesco Devicienti, 2002.
"Poverty persistence in Britain: A multivariate analysis using the BHPS, 1991–1997,"
Journal of Economics,
Springer, vol. 9(1), pages 307-340, December.
- repec:ese:iserwp:99-01 is not listed on IDEAS
- Stephen P. Jenkins, 2000.
"Modelling household income dynamics,"
Journal of Population Economics,
Springer, vol. 13(4), pages 529-567.
- Ambra Poggi, 2004. "Social exclusion mobility in Spain, 1994-2000," Working Papers wpdea0409, Department of Applied Economics at Universitat Autonoma of Barcelona.
- Martin Biewen, 2004.
"Measuring State Dependence in Individual Poverty Status: Are there Feedback Effects to Employment Decisions and Household Composition?,"
Discussion Papers of DIW Berlin
429, DIW Berlin, German Institute for Economic Research.
- Biewen, Martin, 2004. "Measuring State Dependence in Individual Poverty Status: Are There Feedback Effects to Employment Decisions and Household Composition?," IZA Discussion Papers 1138, Institute for the Study of Labor (IZA).
- Satya R. Chakravarty & Conchita D'Ambrosio, 2003.
"The Measurement of Social Exclusion,"
Discussion Papers of DIW Berlin
364, DIW Berlin, German Institute for Economic Research.
- Tsakloglou, Panos & Papadopoulos, Fotis, 2001. "Identifying Population Groups at High Risk of Social Exclusion: Evidence from the ECHP," IZA Discussion Papers 392, Institute for the Study of Labor (IZA).
- Richiardi Matteo & Poggi Ambra, 2012.
"Imputing Individual Effects in Dynamic Microsimulation Models. An application of the Rank Method,"
Department of Economics and Statistics Cognetti de Martiis. Working Papers
201213, University of Turin.
- Ambra Poggi & Matteo G. Richiardi, 2012. "Imputing Individual Effects in Dynamic Microsimulation Models.An application of the Rank Method," LABORatorio R. Revelli Working Papers Series 124, LABORatorio R. Revelli, Centre for Employment Studies.
- Matteo Richiardi & Ambra Poggi, 2012. "Imputing Individual Effects in Dynamic Microsimulation Models. An application of the Rank Method," Carlo Alberto Notebooks 267, Collegio Carlo Alberto.
- Sara Ayllón Gatnau, 2009.
"Modelling state dependence and feedback effects between poverty, employment and parental home emancipation among European youth,"
Economics Working Papers
1180, Department of Economics and Business, Universitat Pompeu Fabra.
- Sara Ayllón, 2009. "Modelling State Dependence and Feedback Effects between Poverty, Employment and Parental Home Emancipation among European Youth," SOEPpapers on Multidisciplinary Panel Data Research 235, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Sara Ayllón, 2009. "Modelling state dependence and feedback effects between poverty, employment and parental home emancipation among European youth," Working Papers 10, Government Institute for Economic Research Finland (VATT).
- Carlos Gradín & Olga Cantó, 2009. "Why are child poverty rates so persistently high in Spain?," Working Papers 123, ECINEQ, Society for the Study of Economic Inequality.
- repec:hal:journl:hal-00393322 is not listed on IDEAS
- Alfonso Miranda, 2010. "Bivariate dynamic probit models for panel data," Mexican Stata Users' Group Meetings 2010 07, Stata Users Group.
- Giles, John T. & Murtazashvili, Irina, 2012.
"A Control Function Approach to Estimating Dynamic Probit Models with Endogenous Regressors, with an Application to the Study of Poverty Persistence in China,"
IZA Discussion Papers
6887, Institute for the Study of Labor (IZA).
- Giles, John & Murtazashvili, Irina, 2010. "A control function approach to estimating dynamic probit models with endogenous regressors, with an application to the study of poverty persistence in China," Policy Research Working Paper Series 5400, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Giovanni Bert).
If references are entirely missing, you can add them using this form.