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Why rising tides dont lift all boats? An explanation of the relationship between poverty and unemployment in Britain

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  • Simon Burgess
  • Karen Gardiner
  • Carol Propper

Abstract

Abstract: This paper is motivated by the lack of any obvious relationship between aggregate poverty and unemployment in Great Britain. We derive a framework based on individuals' risks of unemployment and poverty, and how these vary over the economic cycle. Analysing the British Household Panel Survey for 1991-96, we are able to square the micro evidence - that unemployment matters for poverty - with the macro picture - that there's no strong link. We then go on to identify which household and individual characteristics are associated with whether an individual's poverty risk is vulnerable to the economic cycle.

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File URL: http://sticerd.lse.ac.uk/dps/case/cp/CASEpaper46.pdf
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Bibliographic Info

Paper provided by Centre for Analysis of Social Exclusion, LSE in its series CASE Papers with number case46.

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Date of creation: Feb 2001
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Handle: RePEc:cep:sticas:case46

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Web page: http://sticerd.lse.ac.uk/case/_new/publications/default.asp

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Keywords: Poverty; unemployment; economic cycle;

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