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Poverty persistence in Britain: a multivariate analysis using the BHPS, 1991-1997

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  • Devicienti, Francesco

Abstract

This paper uses longitudinal data from the BHPS, waves 1-7, to document low-income dynamics for individuals living in Britain in 1990s. Poverty entry and exit hazard rates are estimated and used to calculate the distribution of time spent poor over a six-year period. The results underline the importance of accounting for individuals repeated spells of poverty when measuring poverty persistence. Using discrete-time proportional hazard rate models, the paper then seeks to explain and forecast the observed chances of exit/entering poverty and the distribution of time spent in poverty for individuals with selected characteristics. The socio-economic correlates of the observed poverty patterns are investigated, including the relative importance of both household and individual characteristics.

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File URL: https://www.iser.essex.ac.uk/publications/working-papers/iser/2001-02.pdf
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Bibliographic Info

Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2001-02.

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Date of creation: 01 Jan 2001
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Publication status: published
Handle: RePEc:ese:iserwp:2001-02

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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
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Web page: https://www.iser.essex.ac.uk/
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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
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  1. Ondrich, Jan & Rhody, Stephen E., 1999. "Multiple spells in the Prentice-Gloeckler-Meyer likelihood with unobserved heterogeneity," Economics Letters, Elsevier, vol. 63(2), pages 139-144, May.
  2. René Böheim & Stephen P. Jenkins, 2000. "Do Current Income and Annual Income Measures Provide Different Pictures of Britain's Income Distribution?," Discussion Papers of DIW Berlin 214, DIW Berlin, German Institute for Economic Research.
  3. 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.
  4. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-82, July.
  5. Burgess, Simon & Propper, Carol, 1998. "An Economic Model of Household Income Dynamics, with an Application to Poverty Dynamics among American Women," CEPR Discussion Papers 1830, C.E.P.R. Discussion Papers.
  6. repec:ese:iserwp:99-01 is not listed on IDEAS
  7. Lee A. Lillard & Robert J. Willis, 1976. "Dynamic Aspects of Earnings Mobility," NBER Working Papers 0150, National Bureau of Economic Research, Inc.
  8. Gottschalk, Peter & Moffitt, Robert A, 1994. "Welfare Dependence: Concepts, Measures, and Trends," American Economic Review, American Economic Association, vol. 84(2), pages 38-42, May.
  9. Stephen P. Jenkins, 2000. "Modelling household income dynamics," Journal of Population Economics, Springer, vol. 13(4), pages 529-567.
  10. repec:ese:iserwp:2000-01 is not listed on IDEAS
  11. Böheim, René & Taylor, Mark P, 2000. "Unemployment Duration and Exit States in Britain," CEPR Discussion Papers 2500, C.E.P.R. Discussion Papers.
  12. Jarvis, Sarah & Jenkins, Stephen P, 1998. "How Much Income Mobility Is There in Britain?," Economic Journal, Royal Economic Society, vol. 108(447), pages 428-43, March.
  13. 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.
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Cited by:
  1. Ayala, Luis & Navarro, Carolina, 2007. "The dynamics of housing deprivation," Journal of Housing Economics, Elsevier, vol. 16(1), pages 72-97, March.
  2. Dávila Quintana, C. Delia & Malo, Miguel A., 2012. "Poverty dynamics and disability: An empirical exercise using the European community household panel," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(4), pages 350-359.
  3. FAYE Ousmane & ISLAM Nizamul & ZULU Eliya, 2011. "Poverty dynamics in Nairobi's slums: testing for true state dependence and heterogeneity effects," CEPS/INSTEAD Working Paper Series 2011-56, CEPS/INSTEAD.
  4. Daouli, Joan & Davillas, Apostolos & Demoussis, Michael & Giannakopoulos, Nicholas, 2014. "Obesity persistence and duration dependence: Evidence from a cohort of US adults (1985–2010)," Economics & Human Biology, Elsevier, vol. 12(C), pages 30-44.
  5. Eirini Andriopoulou & Panagiotis Tsakloglou, . "The determinants of poverty transitions in Europe and the role of duration dependence," DEOS Working Papers 1119, Athens University of Economics and Business.
  6. Devicienti, Francesco, 2002. "Estimating Poverty Persistence in Britain," Royal Economic Society Annual Conference 2002 61, Royal Economic Society.
  7. Katsushi Imai & Jin You, 2012. "Poverty Dynamics of Households in Rural China: Identifying Multiple Pathways for Poverty Transition," The School of Economics Discussion Paper Series 1203, Economics, The University of Manchester.
  8. Islam, Nizamul & Shimeles, Abebe, 2007. "Poverty dynamics in Ethiopia: state dependence," Working Papers in Economics 260, University of Gothenburg, Department of Economics.
  9. Frédéric Gaspart & Anne-Claire Thomas, 2012. "Does poverty trap rural Malagasy households?," Working Papers DT/2012/07, DIAL (Développement, Institutions et Mondialisation).
  10. repec:ese:iserwp:2008-24 is not listed on IDEAS
  11. Francesco Devicienti & Ambra Poggi, 2007. "Poverty and social exclusion: two sides of the same coin or dynamically interrelated processes?," LABORatorio R. Revelli Working Papers Series 62, LABORatorio R. Revelli, Centre for Employment Studies.
  12. Coral del Río & Carlos Gradín & Olga Cantó, 2006. "What helps households with children in leaving poverty? Evidence from Spain," Working Papers 24, ECINEQ, Society for the Study of Economic Inequality.
  13. Lori J. Curtis & Kathleen Rybczynski, 2013. "Exiting Poverty: Does Sex Matter?," Working Papers 1307, University of Waterloo, Department of Economics, revised Sep 2013.
  14. 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) 2008042, Université catholique de Louvain, Département des Sciences Economiques.
  15. Katsushi S. Imai & Jing You, 2013. "Poverty Dynamics of Households in Rural China," Discussion Paper Series DP2013-16, Research Institute for Economics & Business Administration, Kobe University, revised Jun 2013.
  16. Natalia Nehrebecka & Agata Kocia, 2009. "Analysis of poverty in Poland in 1997 - 2000 using hazard models," Working Papers 2009-09, Faculty of Economic Sciences, University of Warsaw.

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