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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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  • Taryn Ann Galloway, 2004. "To What Extent Is a Transition into Employment Associated with an Exit from Poverty," Discussion Papers 382, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:382
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    1. Stephen P. Jenkins, 2000. "Modelling household income dynamics," Journal of Population Economics, Springer;European Society for Population Economics, 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 141-158, 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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    More about this item

    Keywords

    Unemployment; Employment; Poverty;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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