Low Income Dynamics: Analyzing poverty exits and entries
Since 1994, the European Community Household Panel provides information on changes in the French households income and on household situation vis-à-vis the labour market month after month. Using the five available waves, this paper investigates the impact of some family events and changes in the job market situation on poverty exits and entries. The analysis focuses on working age households. Poor households are defined as those with a living standard lower than 60% of the median equivalent income. Five years poverty incidence is found to be 31%, that is twice as larger as one year incidence. One third of poor households exit from poverty in the year after while 6% of non-poor fall into. Labour income has a major contribution to changes in living standard level. An econometric estimation of poverty flows leads to the following results: Changes in employment situations have a major impact on poverty entries and exits. Probability of poverty exit increases with the number of working months while the risk of entering poverty increases when the number of working months decreases. For couples, child births increase the risk of poverty entry, but do not modify the probability of poverty exit. After a child departure the household is more likely to exit poverty, but the risk of poverty entry is not significantly affected. A high education level protects against poverty entry, but does not increase the chances of living poverty.
|Date of creation:||2002|
|Contact details of provider:|| Postal: 15 Boulevard Gabriel Peri 92244 Malakoff Cedex|
Phone: 01 41 17 50 50
Web page: http://www.insee.fr
More information through EDIRC
References listed on IDEAS
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.:
- Ann Huff Stevens, 1995.
"Climbing Out of Poverty, Falling Back In: Measuring the Persistence of Poverty over Multiple Spells,"
NBER Working Papers
5390, National Bureau of Economic Research, Inc.
- Ann Huff Stevens, 1999. "Climbing out of Poverty, Falling Back in: Measuring the Persistence of Poverty Over Multiple Spells," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 557-588.
- Eric Maurin & Catherine Chambaz, 1996. "La persistance dans la pauvreté et son évolution," Économie et Prévision, Programme National Persée, vol. 122(1), pages 133-152.
- Pascale Breuil-Genier & Sophie Ponthieux & Jean-Paul Zoyem, 2001. "Profils sur le marché du travail et caractéristiques familiales des actifs pauvres," Économie et Statistique, Programme National Persée, vol. 349(1), pages 99-124.
- 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.
- Pablo Antolín & Thai-Thanh Dang & Howard Oxley, 1999. "Poverty Dynamics in Four OECD Countries," OECD Economics Department Working Papers 212, OECD Publishing.
When requesting a correction, please mention this item's handle: RePEc:crs:wpdeee:g2002-11. 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: (D3E)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.