Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Dynamics and Persistence of Poverty: Evidence from Italy

Contents:

Author Info

  • Francesco Devicienti
  • Valentina Gualtieri

Abstract

This article studies the dynamics and persistence of poverty in Italy during the nineties, using the ECHP, 1994-2001. Various definitions of poverty are analyzed in parallel, income poverty, subjective poverty and a multidimensional index of life-style deprivation. For each poverty definition, the hazard rates of leaving poverty and re-entering into it are estimated and combined to compute a measure of poverty persistence that takes account of individuals’ repeated spells in poverty. The estimates provide a picture of high poverty turnover for the majority of the Italian population, which is true for any of the alternative definitions of poverty considered. Thus movements in and out of poverty cannot be simply related to spurious transitions due to measurement errors in household income. Multivariate exit and re-entry rate regressions are then estimated jointly to allow for correlated unobserved heterogeneity. The results highlight the role of demographic characteristics, the insufficiencies of the existing social security system and, above all, the weaknesses of the Italian labor market in generating persistent poverty for certain subgroups of the population.

Download Info

If 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.
File URL: http://www.laboratoriorevelli.it/_pdf/wp63.pdf
Download Restriction: no

Bibliographic Info

Paper provided by LABORatorio R. Revelli, Centre for Employment Studies in its series LABORatorio R. Revelli Working Papers Series with number 63.

as in new window
Length: 47 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:cca:wplabo:63

Contact details of provider:
Postal: Via Real Collegio, 30, 10024 Moncalieri (To)
Phone: +390116705000
Fax: +390116476847
Email:
Web page: http://www.laboratoriorevelli.it/
More information through EDIRC

Related research

Keywords: Poverty dynamics; poverty persistence; repeated spells; duration models; Italy.;

Other versions of this item:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Francesco Devicienti, 2001. "Estimating Poverty Persistence in Britain," 10th International Conference on Panel Data, Berlin, July 5-6, 2002, International Conferences on Panel Data B2-3, International Conferences on Panel Data.
  2. 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, International Conferences on Panel Data B2-1, International Conferences on Panel Data.
  3. Olga Cantó, 2003. "Finding out the Routes to Escape Poverty: The Relevance of Demographic vs. Labor Market Events in Spain," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(4), pages 569-588, December.
  4. Stephen P. Jenkins, 2000. "Modelling household income dynamics," Journal of Population Economics, Springer, Springer, vol. 13(4), pages 529-567.
  5. Bruce D. Meyer, 1988. "Unemployment Insurance And Unemployment Spells," NBER Working Papers 2546, National Bureau of Economic Research, Inc.
  6. 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.
  7. Ambra Poggi, 2007. "Does persistence of social exclusion exist in Spain?," Journal of Economic Inequality, Springer, Springer, vol. 5(1), pages 53-72, April.
  8. Jenkins, Stephen P, 1995. "Easy Estimation Methods for Discrete-Time Duration Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 129-38, February.
  9. Christopher Whelan & Bertrand Maître, 2006. "Comparing poverty and deprivation dynamics: Issues of reliability and validity," Journal of Economic Inequality, Springer, Springer, vol. 4(3), pages 303-323, December.
  10. Sen, Amartya, 1997. "On Economic Inequality," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780198292975, October.
  11. 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.
  12. Arnstein Aassve & Simon Burgess & Matt Dickson & Carol Propper, 2006. "Modelling poverty by not modelling poverty: an application of a simultaneous hazards approach to the UK," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 6243, London School of Economics and Political Science, LSE Library.
  13. Lorenzo Cappellari & Stephen P. Jenkins, 2004. "Modelling low income transitions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 19(5), pages 593-610.
  14. Lorenzo Cappellari & Stephen P. Jemkins, 2002. "Who Stays Poor? Who Becomes Poor? Evidence from the British Household Panel Survey," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(478), pages C60-C67, March.
  15. Massimo Baldini & Stefano Toso & Paolo Bosi, 2002. "Targeting welfare in Italy: old problems and perspectives on reform," Fiscal Studies, Institute for Fiscal Studies, Institute for Fiscal Studies, vol. 23(1), pages 51-75, March.
  16. 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.
  17. Conchita D'Ambrosio & Joseph Deutsch & Jacques Silber, 2009. "Multidimensional approaches to poverty measurement: an empirical analysis of poverty in Belgium, France, Germany, Italy and Spain, based on the European panel," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 43(8), pages 951-961.
  18. Tindara Addabbo, 2000. "Poverty Dynamics: Analysis of Household Incomes in Italy," LABOUR, CEIS, CEIS, vol. 14(1), pages 119-144, 03.
  19. Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, Springer, vol. 27(1), pages 63-90.
  20. Massimo V. Rostagno & Francesca Utili, 1998. "The Italian Social Protection System," IMF Working Papers 98/74, International Monetary Fund.
  21. Richard Breen & Pasi Moisio, 2004. "Poverty dynamics corrected for measurement error," Journal of Economic Inequality, Springer, Springer, vol. 2(3), pages 171-191, July.
  22. Robert G. Valletta, 2006. "The Ins And Outs Of Poverty In Advanced Economies: Government Policy And Poverty Dynamics In Canada, Germany, Great Britain, And The United States," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(2), pages 261-284, 06.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Veronica Polin & Michele Raitano, 2012. "Poverty Dynamics in Clusters of European Union Countries: Related Events and Main Determinants," Working Papers, University of Verona, Department of Economics 10/2012, University of Verona, Department of Economics.
  2. Eirini Andriopoulou & Panagiotis Tsakloglou, . "The determinants of poverty transitions in Europe and the role of duration dependence," DEOS Working Papers 1120, Athens University of Economics and Business.
  3. repec:tur:wpapnw:7 is not listed on IDEAS
  4. Eisenhauer, Joseph G., 2011. "The rich, the poor, and the middle class: Thresholds and intensity indices," Research in Economics, Elsevier, Elsevier, vol. 65(4), pages 294-304, December.
  5. repec:ese:iserwp:2008-24 is not listed on IDEAS
  6. Nicola Amendola & Mariacristina Rossi & Giovanni Vecchi, 2012. "Vulnerability to Poverty in Italy," Working papers, Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino 007, Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
  7. Maes, Marjan, 2008. "poverty persistence among belgian elderly: true or spurious?," Working Papers, Hogeschool-Universiteit Brussel, Faculteit Economie en Management 2008/10, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
  8. Marjan, MAES, 2008. "Poverty persistence among Belgian elderly in the transition from work to retirement : an empirical analysis," Discussion Papers (ECON - Département des Sciences Economiques), Université catholique de Louvain, Département des Sciences Economiques 2008042, Université catholique de Louvain, Département des Sciences Economiques.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cca:wplabo:63. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Giovanni Bert).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.