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Household Size and Poverty

In: Inequality, Redistribution and Mobility

Author

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  • Alessio Fusco
  • Nizamul Islam

Abstract

This paper investigates the effect of household size, and in particular of the number of children of different age groups, on poverty, defined as being in a situation of low income. We apply various static and dynamic probit models to control for the endogeneity of the variables of interest and to account for unobserved heterogeneity, state dependence, and serially correlated error components. Using Luxembourg longitudinal data, we show that the number of children of different age groups significantly affects the probability of being poor. However, the magnitude of the effect varies across different specifications. In addition, we find strong evidence of true poverty persistency due to past experience, spurious poverty persistency due to individual heterogeneity, and transitory random shocks.

Suggested Citation

  • Alessio Fusco & Nizamul Islam, 2020. "Household Size and Poverty," Research on Economic Inequality, in: Inequality, Redistribution and Mobility, volume 28, pages 151-177, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:reinzz:s1049-258520200000028006
    DOI: 10.1108/S1049-258520200000028006
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    Citations

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    Cited by:

    1. Beeler, Lisa & Zablah, Alex R. & Rapp, Adam, 2022. "Ability is in the eye of the beholder: How context and individual factors shape consumer perceptions of digital assistant ability," Journal of Business Research, Elsevier, vol. 148(C), pages 33-46.
    2. Hofman, Irna & Visser, Oane, 2021. "Towards a geography of window dressing and benign neglect: The state, donors and elites in Tajikistan’s trajectories of post-Soviet agrarian change," Land Use Policy, Elsevier, vol. 111(C).
    3. Alessio Fusco & Philippe Van Kerm, 2023. "Measuring poverty persistence," Chapters, in: Jacques Silber (ed.), Research Handbook on Measuring Poverty and Deprivation, chapter 18, pages 192-200, Edward Elgar Publishing.
    4. Chatterji, Pinka & Li, Yue, 2021. "Effects of COVID-19 on school enrollment," Economics of Education Review, Elsevier, vol. 83(C).

    More about this item

    Keywords

    Poverty; household size; longitudinal data; state dependence; endogeneity; serial correlation; Luxembourg; D10; D31; I32;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • 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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