Poverty and social exclusion: two sides of the same coin or dynamically interrelated processes?
There is growing interest in the analysis and measurement of social exclusion, to complement the static and dynamic literature on income poverty. On theoretical grounds, social exclusion and income poverty are seen as different processes, but with closely interrelated dynamics. However, our empirical understanding of the way these two processes dynamically interact at the individual level is still very limited. To shed some light on the issue, we use a dynamic bivariate probit model, controlling for unobserved heterogeneity and Wooldridge (2005)-type initial conditions. Both first and second order Markov dynamics are examined. We estimate the model using the Italian sample of the ECHP, waves 1-8, and find a sizable extent of state dependence in both poverty and social exclusion. Moreover, there are dynamic cross-effects, implying that poverty and social exclusion are mutually reinforcing. Social policies aimed at eradicating poverty and avoiding individuals’ social and economic marginalization should take these interaction effects explicitly into account.
|Date of creation:||2007|
|Date of revision:|
|Contact details of provider:|| Postal: Via Real Collegio, 30, 10024 Moncalieri (To)|
Web page: http://www.laboratoriorevelli.it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tsakloglou, Panos & Papadopoulos, Fotis, 2001. "Identifying Population Groups at High Risk of Social Exclusion: Evidence from the ECHP," IZA Discussion Papers 392, Institute for the Study of Labor (IZA).
- BOSSERT, Walter & D'AMBROSIO, Conchita & PERAGINE, Vito, 2004.
"Deprivation and Social Exclusion,"
Cahiers de recherche
02-2004, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Lorenzo Cappellari & Stephen P. Jenkins, 2004.
"Modelling low income transitions,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 19(5), pages 593-610.
- Lorenzo Cappellari & Stephen P. Jenkins, 2002. "Modelling Low Income Transitions," Discussion Papers of DIW Berlin 288, DIW Berlin, German Institute for Economic Research.
- Cappellari, Lorenzo & Jenkins, Stephen P., 2002. "Modelling Low Income Transitions," IZA Discussion Papers 504, Institute for the Study of Labor (IZA).
- Alessie, Rob & Stefan Hochguertel & Arthur van Soest, 2002.
"Ownership of Stocks and Mutual Funds: A Panel Data Analysis,"
Royal Economic Society Annual Conference 2002
3, Royal Economic Society.
- Rob Alessie & Stefan Hochguertel & Arthur van Soest, 2004. "Ownership of Stocks and Mutual Funds: A Panel Data Analysis," The Review of Economics and Statistics, MIT Press, vol. 86(3), pages 783-796, August.
- Alessie, R.J.M. & Hochgürtel, S. & van Soest, A.H.O., 2004. "Ownership of stocks and mutual funds : A panel data analysis," Other publications TiSEM 471d7c77-905c-4d47-84b9-d, Tilburg University, School of Economics and Management.
- Alessie, R.J.M. & Hochgürtel, S. & van Soest, A.H.O., 2001. "Ownership of Stocks and Mutual Funds : A Panel Data Analysis," Discussion Paper 2001-94, Tilburg University, Center for Economic Research.
- Biewen, Martin, 2004.
"Measuring State Dependence in Individual Poverty Status: Are There Feedback Effects to Employment Decisions and Household Composition?,"
IZA Discussion Papers
1138, Institute for the Study of Labor (IZA).
- Martin Biewen, 2004. "Measuring State Dependence in Individual Poverty Status: Are there Feedback Effects to Employment Decisions and Household Composition?," Discussion Papers of DIW Berlin 429, DIW Berlin, German Institute for Economic Research.
- Joseph Deutsch & Jacques Silber, 2005. "Measuring Multidimensional Poverty: An Empirical Comparison Of Various Approaches," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(1), pages 145-174, 03.
- Satya R. Chakravarty & Conchita D'Ambrosio, 2006.
"The Measurement Of Social Exclusion,"
Review of Income and Wealth,
International Association for Research in Income and Wealth, vol. 52(3), pages 377-398, 09.
- Ambra Poggi, 2004. "Social exclusion mobility in Spain, 1994-2000," Working Papers wpdea0409, Department of Applied Economics at Universitat Autonoma of Barcelona.
- Stephen P. Jenkins, 2000. "Modelling household income dynamics," Journal of Population Economics, Springer, vol. 13(4), pages 529-567.
- Francesco Devicienti, 2002.
"Poverty persistence in Britain: A multivariate analysis using the BHPS, 1991–1997,"
Journal of Economics,
Springer, vol. 77(1), pages 307-340, December.
- Francesco Devicienti, 2002. "Poverty persistence in Britain: A multivariate analysis using the BHPS, 1991–1997," Journal of Economics, Springer, vol. 9(1), pages 307-340, December.
- Francesco Devicienti & Valentina Gualtieri, 2004. "Dinamiche e persistenza della povertà in Italia: Un’analisi con microdati panel di fonte ECHP," LABORatorio R. Revelli Working Papers Series 34, LABORatorio R. Revelli, Centre for Employment Studies.
- Tindara Addabbo, 2000. "Poverty Dynamics: Analysis of Household Incomes in Italy," LABOUR, CEIS, vol. 14(1), pages 119-144, 03.
When requesting a correction, please mention this item's handle: RePEc:cca:wplabo:62. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Giovanni Bert)
If references are entirely missing, you can add them using this form.