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Who Stays Poor? Who Becomes Poor? Evidence from the British Household Panel Survey

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  • Lorenzo Cappellari

    (University of Essex)

  • Stephen P. Jemkins

    (University of Essex)

Abstract

We estimate a first-order Markov model of poverty persistence and entry rates for working-age Britons and demonstrate the importance of controlling for endogenous selection via initial poverty status and attrition. Predicted poverty transition rates reveal substantial heterogeneity in poverty transition rates, but there is also substantial genuine state dependence in poverty. Copyright Royal Economic Society 2002.

Suggested Citation

  • Lorenzo Cappellari & Stephen P. Jemkins, 2002. "Who Stays Poor? Who Becomes Poor? Evidence from the British Household Panel Survey," Economic Journal, Royal Economic Society, vol. 112(478), pages 60-67, March.
  • Handle: RePEc:ecj:econjl:v:112:y:2002:i:478:p:c60-c67
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    References listed on IDEAS

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    1. Arulampalam, Wiji & Booth, Alison L & Taylor, Mark P, 2000. "Unemployment Persistence," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 24-50, January.
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