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Poverty dynamics: empirical evidence for Canada

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  • Ross Finnie
  • Arthur Sweetman

Abstract

Poverty (low income) dynamics are explored using tax filer data covering the period 1992 to 1996. The distributions of short- and long-term episodes are identified and reveal substantial differences by sex and family type. Entry and exit models explore the relationships between poverty transitions and sex, family status and other personal and situational attributes. Duration effects on exiting and re-entering poverty are found to be important, and models including past poverty experiences point to strong `occurrence dependence' for poverty entry and incidence. Fixed-effect panel data models confirm the above and reveal asymmetries in the impacts of household transitions on poverty.

Suggested Citation

  • Ross Finnie & Arthur Sweetman, 2003. "Poverty dynamics: empirical evidence for Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 36(2), pages 291-325, May.
    • Handle: RePEc:cje:issued:v:36:y:2003:i:2:p:291-325
    DOI: 10.1111/1540-5982.t01-1-00002
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    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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