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Adaptation to Poverty in Long-Run Panel Data

Author

Listed:
  • Andrew E. Clark

    (PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Conchita d'Ambrosio

    (uni.lu - Université du Luxembourg = University of Luxembourg = Universität Luxemburg)

  • Simone Ghislandi

    (Università commerciale Luigi Bocconi - Università commerciale Luigi Bocconi)

Abstract

We consider the link between poverty and subjective wellbeing and focus in particular on potential adaptation to poverty. We use panel data on almost 54,000 individuals living in Germany from 1985 to 2012 to show, first, that life satisfaction falls with both the incidence and intensity of contemporaneous poverty. We then reveal that there is little evidence of adaptation within a poverty spell: poverty starts bad and stays bad in terms of subjective well-being. We cannot identify any cause of poverty entry that explains the overall lack of poverty adaptation.

Suggested Citation

  • Andrew E. Clark & Conchita d'Ambrosio & Simone Ghislandi, 2016. "Adaptation to Poverty in Long-Run Panel Data," PSE-Ecole d'économie de Paris (Postprint) halshs-01383894, HAL.
    • Handle: RePEc:hal:pseptp:halshs-01383894
    DOI: 10.1162/REST_a_00544
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    Keywords

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    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • D60 - Microeconomics - - Welfare Economics - - - General

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