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Low income dynamics in 1990s Britain


  • Sarah Jarvis
  • Stephen P. Jenkins


This paper analyses low income dynamics in Britain using the first four waves of the British Household Panel Survey. There is much low income turnover: although there is a small group of people who are persistently poor, more striking is the relatively large number of low income escapers and entrants from one year to the next. Simulations using estimated low income exit and re-entry rates demonstrate the importance of repeated low income spells for explaining a person’s experience of low income over a given period. We also document the characteristics of low income stayers, escapers and entrants.

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  • Sarah Jarvis & Stephen P. Jenkins, 1997. "Low income dynamics in 1990s Britain," Fiscal Studies, Institute for Fiscal Studies, vol. 18(2), pages 123-142, May.
  • Handle: RePEc:ifs:fistud:v:18:y:1997:i:2:p:123-142

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    References listed on IDEAS

    1. 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.
    2. 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.
    3. Duncan, Greg J & Gustafsson, Bjorn & Hauser, Richard & Schmauss, Gunther & Messinger, Hans & Muffels, Ruud & Nolan, Brian, 1993. "Poverty Dynamics in Eight Countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 6(3), pages 215-234.
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    Cited by:

    1. Euan Phimister, Esperanza Vera-Toscano and Deborah Roberts, 2015. "The Dynamics of Energy Poverty: Evidence from Spain," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    2. Mark Kleinman, 1998. "Include Me Out? The New Politics of Place and Poverty (published in "Policy Studies", 21:1, April 2000)," CASE Papers case11, Centre for Analysis of Social Exclusion, LSE.
    3. Francesco Devicienti & Valentina Gualtieri & Mariacristina Rossi, 2014. "The Persistence Of Income Poverty And Lifestyle Deprivation: Evidence From Italy," Bulletin of Economic Research, Wiley Blackwell, vol. 66(3), pages 246-278, July.
    4. Francesco Devicienti, 2011. "Estimating poverty persistence in Britain," Empirical Economics, Springer, vol. 40(3), pages 657-686, May.
    5. Aysenur Acar & Cem Baslevent, 2014. "Examination of the Transitions of Households into and out of Poverty in Turkey," Working Papers 015, Bahcesehir University, Betam.
    6. Natalia Nehrebecka & Agata Kocia, 2009. "Analysis of poverty in Poland in 1997 - 2000 using hazard models," Working Papers 2009-09, Faculty of Economic Sciences, University of Warsaw.
    7. Connie Bayudan-Dacuycuy & Joseph Lim, 2014. "Chronic and Transient Poverty and Vulnerability to Poverty in the Philippines: Evidence Using a Simple Spells Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(1), pages 389-413, August.
    8. Iryna Kyzyma & Donald R. Williams, 2017. "Public cash transfers and poverty dynamics in Europe," Empirical Economics, Springer, vol. 52(2), pages 485-524, March.
    9. Eirini Andriopoulou & Panagiotis Tsakloglou, "undated". "The determinants of poverty transitions in Europe and the role of duration dependence," DEOS Working Papers 1120, Athens University of Economics and Business.
    10. Bayudan-Dacuycuy, Connie & Lim, Joseph Anthony, 2013. "Family size, household shocks and chronic and transient poverty in the Philippines," Journal of Asian Economics, Elsevier, vol. 29(C), pages 101-112.
    11. Connie Bayudan-Dacuycuy, 2013. "The Influence of Living with Parents on Women's Decision-Making Participation in the Household: Evidence from the Southern Philippines," Journal of Development Studies, Taylor & Francis Journals, vol. 49(5), pages 641-656, May.
    12. Christina Behrendt, 1999. "Effectiveness of Means-tested Transfers in Western Europe: Evidence from the Luxembourg Income Study," LIS Working papers 211, LIS Cross-National Data Center in Luxembourg.
    13. Bayudan-Dacuycuy, Connie & Lim, Joseph Anthony, 2013. "Family Size, Household Shocks and Chronic and Transient Poverty in the Philippine Households," MPRA Paper 64739, University Library of Munich, Germany.
    14. Bradley, Steve & Crouchley, Rob & Oskrochi, Reza, 2003. "Social exclusion and labour market transitions: a multi-state multi-spell analysis using the BHPS," Labour Economics, Elsevier, vol. 10(6), pages 659-679, December.
    15. Richard V. Burkhauser & Timothy M. Smeeding, 2000. "Microdata Panel Data and Public Policy: National and Cross-National Perspectives," Center for Policy Research Working Papers 23, Center for Policy Research, Maxwell School, Syracuse University.
    16. Christopher T. Whelan & Richard Layte & Bertrand Maitre & Brian Nolan, 2000. "Poverty Dynamics: An Analysis of the 1994 and 1995 Waves of the European Community Household Panel Survey. Published in European Societies, 2000, Vol 4 No 2," Papers WP129, Economic and Social Research Institute (ESRI).
    17. Roberts, Deborah & Vera-Toscano, Esperanza & Phimister, Euan, 2015. "Energy poverty in the UK: Is there a difference between rural and urban areas?," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204213, Agricultural Economics Society.
    18. Roberts, Deborah & Vera-Toscano, Esperanza & Phimister, Euan, 2015. "Fuel poverty in the UK: Is there a difference between rural and urban areas?," Energy Policy, Elsevier, vol. 87(C), pages 216-223.
    19. Francisco Azpitarte, 2010. "Measuring poverty using both income and wealth: A cross-country comparison between the U.S. and Spain," Working Papers 153, ECINEQ, Society for the Study of Economic Inequality.
    20. Layte, Richard & Maitre, Bernard & Nolan, Brian & Watson, Dorothy & Williams, James & Casey, Barra, 2001. "Monitoring Poverty Trends and Exploring Poverty Dynamics in Ireland," Research Series, Economic and Social Research Institute (ESRI), number PRS41.
    21. Rigg, John A. & Sefton, Tom, 2004. "Income dynamics and the life cycle," LSE Research Online Documents on Economics 6310, London School of Economics and Political Science, LSE Library.
    22. Ayala, Luis & Navarro, Carolina, 2007. "The dynamics of housing deprivation," Journal of Housing Economics, Elsevier, vol. 16(1), pages 72-97, March.
    23. Spryskov Dmitry, 2003. "Below the Poverty Line: Duration of Poverty in Russia," EERC Working Paper Series 03-04e, EERC Research Network, Russia and CIS.
    24. Daouli, Joan & Davillas, Apostolos & Demoussis, Michael & Giannakopoulos, Nicholas, 2014. "Obesity persistence and duration dependence: Evidence from a cohort of US adults (1985–2010)," Economics & Human Biology, Elsevier, vol. 12(C), pages 30-44.
    25. John A. Rigg & Tom Sefton, 2004. "Income Dynamics and the Life Cycle," CASE Papers 081, Centre for Analysis of Social Exclusion, LSE.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty


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