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Always poor or never poor and nothing in between? Duration of child poverty in Germany

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  • Fertig, Michael
  • Tamm, Marcus

Abstract

This paper analyses the duration of child poverty in Germany. In our sample, we observe the entire income history from the individuals' birth to their coming of age at age 18. Therefor we are able to analyze dynamics in and out of poverty for the entire population of children, wether they become poor at least once or not. Using duration models, we allow poverty exit and re-entry to be correlated even after controlling for observable characteristics and also account for correlations with initial conditions. Our results indicate that househould composition, most importantly single parenthood, and the labour market status as well as level of education ot the househould head are the main driving forces behind exit from and reentry into poverty and thus determine the (long-term) experience of child poverty. However, unobserved heterogeneity seems to play an important role as well. --

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Bibliographic Info

Paper provided by Technische Universität Dortmund, Sonderforschungsbereich 475: Komplexitätsreduktion in multivariaten Datenstrukturen in its series Technical Reports with number 2007,05.

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Date of creation: 2007
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Handle: RePEc:zbw:sfb475:200705

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Keywords: child poverty; duration analysis; unobserved heterogeneity;

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References

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  1. Miles Corak & Michael Fertig & Marcus Tamm, 2005. "A Portrait of Child Poverty in Germany," Innocenti Working Papers inwopa05/29, UNICEF Innocenti Research Centre.
  2. Lawrence F. Katz & Jeffrey R. Kling & Jeffrey B. Liebman, 2000. "Moving to Opportunity in Boston: Early Results of a Randomized Mobility Experiment," NBER Working Papers 7973, National Bureau of Economic Research, Inc.
  3. Hansen, Jörgen & Wahlberg, Roger, 2004. "Poverty Persistence in Sweden," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4539, C.E.P.R. Discussion Papers.
  4. Martin Biewen, 2003. "Who Are the Chronic Poor?: Evidence on the Extent and the Composition of Chronic Poverty in Germany," Discussion Papers of DIW Berlin 350, DIW Berlin, German Institute for Economic Research.
  5. Francesco Devicienti, 2001. "Estimating Poverty Persistence in Britain," LABORatorio R. Revelli Working Papers Series, LABORatorio R. Revelli, Centre for Employment Studies 1, LABORatorio R. Revelli, Centre for Employment Studies.
  6. Anne Case & Darren Lubotsky & Christina Paxson, 2001. "Economic Status and Health in Childhood: The Origins of the Gradient," NBER Working Papers 8344, National Bureau of Economic Research, Inc.
  7. Lorenzo Cappellari & Stephen P. Jemkins, 2002. "Who Stays Poor? Who Becomes Poor? Evidence from the British Household Panel Survey," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(478), pages C60-C67, March.
  8. Arnstein Aassve & Simon Burgess & Matt Dickson & Carol Propper, 2006. "Modelling poverty by not modelling poverty: an application of a simultaneous hazards approach to the UK," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 6243, London School of Economics and Political Science, LSE Library.
  9. Martin Biewen, 2005. "The Covariance Structure of East and West German Incomes and its Implications for the Persistence of Poverty and Inequality," German Economic Review, Verein für Socialpolitik, Verein für Socialpolitik, vol. 6(4), pages 445-469, November.
  10. Ann Huff Stevens, 1995. "Climbing Out of Poverty, Falling Back In: Measuring the Persistence of Poverty over Multiple Spells," NBER Working Papers 5390, National Bureau of Economic Research, Inc.
  11. Arild Aakvik & Kjell G. Salvanes & Kjell Vaage, 2005. "Educational Attainment and Family Background," German Economic Review, Verein für Socialpolitik, Verein für Socialpolitik, vol. 6(3), pages 377-394, 08.
  12. Hansen, Jörgen & Wahlberg, Roger, 2004. "Poverty Persistence in Sweden," IZA Discussion Papers 1209, Institute for the Study of Labor (IZA).
  13. James Heckman & Pedro Carneiro, 2003. "Human Capital Policy," NBER Working Papers 9495, National Bureau of Economic Research, Inc.
  14. Miles Corak & *UNICEF, 2005. "Principles and Practicalities in Measuring Child Poverty for the Rich Countries," Innocenti Working Papers inwopa05/27, UNICEF Innocenti Research Centre.
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Citations

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Cited by:
  1. Walter Kraemer & Gerhard Arminger, 2010. ""True Believers" or Numerical Terrorism at the Nuclear Power Plant," CESifo Working Paper Series 3180, CESifo Group Munich.
  2. KYZYMA Iryna, 2013. "Changes in the patterns of poverty duration in Germany, 1992-2009," CEPS/INSTEAD Working Paper Series 2013-06, CEPS/INSTEAD.
  3. Devicienti, Francesco, 2002. "Estimating Poverty Persistence in Britain," Royal Economic Society Annual Conference 2002, Royal Economic Society 61, Royal Economic Society.
  4. Marcus Tamm, 2009. "Child Benefit Reform and Labor Market Participation," Ruhr Economic Papers, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen 0097, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  5. Zabel, Cordula, 2011. "Lone mothers' participation in labor market programs for means-tested benefit recipients in Germany," IAB Discussion Paper, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] 201114, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  6. Marjan Maes, 2013. "Poverty persistence among the elderly in the transition from work to retirement," Journal of Economic Inequality, Springer, Springer, vol. 11(1), pages 35-56, March.
  7. Lindquist, Matthew J. & Sjögren Lindquist, Gabriella, 2008. "The Dynamics of Child Poverty in Sweden," Working Paper Series, Swedish Institute for Social Research 4/2008, Swedish Institute for Social Research.
  8. Nguyen Viet Cuong & Vu Hoang Linh, 2014. "Should Parents Work Away from or Close to Home? The Effect of Temporary Parental Absence on Child Poverty and Children’s Time Use in Vietnam," Working Papers, Department of Research, Ipag Business School 2014-453, Department of Research, Ipag Business School.
  9. Kerstin Schneider & Claudia Schuchart & Horst Weishaupt & Andrea Riedel, 2011. "The effect of free primary school choice on ethnic groups – Evidence from a policy reform," Schumpeter Discussion Papers, Universitätsbibliothek Wuppertal, University Library sdp11007, Universitätsbibliothek Wuppertal, University Library.
  10. REINSTADLER Anne & RAY Jean-Claude, 2010. "Macro Determinants of Individual Income Poverty in 93 Regions of Europe," CEPS/INSTEAD Working Paper Series 2010-13, CEPS/INSTEAD.

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