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To What Extent Is a Transition into Employment Associated with an Exit from Poverty

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Abstract

A link between lack of employment and poverty is often made implicitly, but can be difficult to enumerate in a satisfactory manner. We would therefore like to ask the question: to what extent does acquiring employment increase a poor household’s probability of exiting poverty? Register data from the entire resident population of Norway serves as the basis for this analysis, which indicates that full-time does greatly increase the probability of exiting poverty. Part-time employment also has an effect, albeit a small one. Findings with respect to transfers are compatible with certain disincentives related to employment for single mothers, although similar results cannot be found for other types of households.

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Bibliographic Info

Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 382.

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Date of creation: Jul 2004
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Handle: RePEc:ssb:dispap:382

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Keywords: Unemployment; Employment; Poverty;

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  1. Stephen P. Jenkins, 2000. "Modelling household income dynamics," Journal of Population Economics, Springer, vol. 13(4), pages 529-567.
  2. Haveman, Robert & Buron, Lawrence, 1993. "Escaping Poverty through Work: The Problem of Low Earnings Capacity in the United States, 1973-88," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(2), pages 141-58, June.
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Cited by:
  1. Rafael Perez Ribas & Ana Flávia Machado & André Braz Golgher, 2006. "Fluctuations and persistence in poverty: a transient-chronic decomposition model for pseudo-panel data," Textos para Discussão Cedeplar-UFMG td290, Cedeplar, Universidade Federal de Minas Gerais.

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