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What helps households with children in leaving poverty?: Evidence from Spain in contrast with other EU countries

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  • Olga Cantó
  • Coral del Río
  • Carlos Gradín

Abstract

Recent results on poverty in Europe show that households with children have a higher incidence of poverty than households without children. This incidence is not only higher but increasing. The literature on poverty has noted that the events that are most effective in pushing households out of deprivation should largely determine the design of poverty-alleviating social policy. Using longitudinal data for Spain for the 80’s and 90’s we account for the importance of relevant demographic and labour market events in helping households with and without children in leaving a poverty situation decomposing the relevance of each event in that generated by labour market policies and fertility or marriage institutions and welfare state policies implications. Similarly to results for other countries, the events that most help Spanish households in leaving poverty are related to the labour status and changes in employment of household members more than to demographic events. However, we should note that the transitions out of poverty of households with children are most strongly linked to the economic cycle in the economy mainly through labour market events while non-labour income changes appear as more important in determining a potential transition out of poverty of households without children, implying that their transitions are more linked to the social protection system.

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Bibliographic Info

Paper provided by Universidade de Vigo, Departamento de Economía Aplicada in its series Working Papers with number 0201.

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Length: 39 pages
Date of creation: Jan 2002
Date of revision:
Handle: RePEc:vig:wpaper:0201

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Keywords: children; poverty dynamics; outflow rate; Spain; trigger events.;

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References

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  1. Pedro Mira & Namkee Ahn, 2001. "Job bust, baby bust?: Evidence from Spain," Journal of Population Economics, Springer, vol. 14(3), pages 505-521.
  2. Ravallion, Martin, 1996. "Issues in Measuring and Modelling Poverty," Economic Journal, Royal Economic Society, vol. 106(438), pages 1328-43, September.
  3. Duncan, Greg J, et al, 1993. "Poverty Dynamics in Eight Countries," Journal of Population Economics, Springer, vol. 6(3), pages 215-34.
  4. Luttmer, Erzo F.P., 2001. "Measuring poverty dynammics and inequality in transition economies - disentangling real events from noisy data," Policy Research Working Paper Series 2549, The World Bank.
  5. Bradbury,Bruce & Jenkins,Stephen P. & Micklewright,John (ed.), 2001. "The Dynamics of Child Poverty in Industrialised Countries," Cambridge Books, Cambridge University Press, number 9780521004923, October.
  6. repec:ese:iserwp:2001-16 is not listed on IDEAS
  7. Bradbury,Bruce & Jenkins,Stephen P. & Micklewright,John (ed.), 2001. "The Dynamics of Child Poverty in Industrialised Countries," Cambridge Books, Cambridge University Press, number 9780521803106, October.
  8. Stephen P. Jenkins, 2000. "Modelling household income dynamics," Journal of Population Economics, Springer, vol. 13(4), pages 529-567.
  9. Olga Cantó Sanchez & Magda Mercader-Prats, 1998. "Child Poverty in Spain: What can be said?," Innocenti Occasional Papers, Economic Policy Series iopeps98/24, UNICEF Innocenti Research Centre.
  10. 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.
  11. Immervoll, Herwig & Sutherland, Holly & de Vos, Klaas, 2000. "Child poverty and child benefits in the European Union," EUROMOD Working Papers EM1/00, EUROMOD at the Institute for Social and Economic Research.
  12. Stevens, Ann Huff, 1994. "The Dynamics of Poverty Spells: Updating Bane and Ellwood," American Economic Review, American Economic Association, vol. 84(2), pages 34-37, May.
  13. Micklewright, John & Stewart, Kitty, 1999. "Is the Well-Being of Children Converging in the European Union?," Economic Journal, Royal Economic Society, vol. 109(459), pages F692-714, November.
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