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The German spatial poverty divide: poorly endowed or bad luck?

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  • Timm Bönke

    (Freie Universität Berlin)

  • Carsten Schröder

    (University of Kiel)

Abstract

We study inter-temporal changes in poverty for Germany from year 1978 to 2003, and we employ the bootstrap method to test for statistical significance of results. All results are decomposed by household type and region. Poverty estimates are particularly high for single parents. Most striking, however, is the poverty divide between the old and newly-formed German Federal States, with poverty being significantly higher in the latter. We conduct a nonlinear Oaxaca-Blinder decomposition to quantify the separate contribution of regional differences in households’ characteristics to the probability of being poor.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2009-118.pdf
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Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 118.

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Length: 35 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2009-118

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Keywords: Poverty; decomposition; expenditure patterns; necessities; Oaxaca-Blinder decomposition; bootstrap; equivalence scale.;

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  1. Stephen P. Jenkins & Christian Schluter & Gert G. Wagner, 2001. "The Dynamics of Child Poverty: Britain and Germany Compared," Discussion Papers of DIW Berlin 233, DIW Berlin, German Institute for Economic Research.
  2. Burkhauser, Richard V. & Smeeding, Timothy M. & Merz, Joachim, 1994. "Relative Inequality and Poverty in Germany and the United States Using Alternative Equivalence Scales," MPRA Paper 7229, University Library of Munich, Germany.
  3. Stephen P. Jenkins & Christian Schluter, 2003. "Why Are Child Poverty Rates Higher in Britain than in Germany?: A Longitudinal Perspective," Journal of Human Resources, University of Wisconsin Press, vol. 38(2).
  4. Philip Oreopoulos & Mark Stabile & Randy Walld & Leslie L. Roos, 2008. "Short-, Medium-, and Long-Term Consequences of Poor Infant Health: An Analysis Using Siblings and Twins," Journal of Human Resources, University of Wisconsin Press, vol. 43(1).
  5. Miles Corak & Michael Fertig & Marcus Tamm, 2005. "A Portrait of Child Poverty in Germany," Innocenti Working Papers inwopa05/29, UNICEF Innocenti Research Centre.
  6. Finis Welch, 1999. "In Defense of Inequality," American Economic Review, American Economic Association, vol. 89(2), pages 1-17, May.
  7. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  8. 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.
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