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Longitudinal Poverty and Income Inequality A Comparative Panel Study for The Netherlands, Germany and the UK


  • Muffels, Ruud
  • Fouarge, Didier
  • Dekker, Ronald


The increasing availability of longitudinal data on income in Europe greatly facilitates the analysis of income and poverty dynamics. In this paper, the results of longitudinal data analyses on income and poverty in three European welfare states are reported. Using panel data for Germany, the Netherlands and the UK a variety of longitudinal inequality and poverty measures have been applied to reveal these dynamics. The focus will be on so-called poverty profiles indicating whether people belong to the permanent poor, the transient poor, the recurrent poor or the never poor. Multinomial regression models are estimated that aim to explain the likelihood of belonging to each of the poverty profiles over time and on the events that trigger the belonging to the poverty profiles over time. Our results show that there is a great deal of economic mobility in and out of poverty over time. Most of the poor are only poor for a short period of time but, nevertheless, a substantial part of the population is found to be persistent poor. This is particularly the case in the UK. In matured welfare states, income mobility and persistency of poverty are co-occurring. Our analysis of poverty profiles shows that especially labour market events trigger the belonging to the persistent, the recurrent or the transient poor.

Suggested Citation

  • Muffels, Ruud & Fouarge, Didier & Dekker, Ronald, 2000. "Longitudinal Poverty and Income Inequality A Comparative Panel Study for The Netherlands, Germany and the UK," MPRA Paper 13298, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:13298

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    References listed on IDEAS

    1. Lillard, Lee A & Willis, Robert J, 1978. "Dynamic Aspects of Earning Mobility," Econometrica, Econometric Society, vol. 46(5), pages 985-1012, September.
    2. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-764, July.
    3. Sen, Amartya, 1979. " Issues in the Measurement of Poverty," Scandinavian Journal of Economics, Wiley Blackwell, vol. 81(2), pages 285-307.
    4. Headey, Bruce & Goodin, Robert E. & Muffels, Ruud & Dirven, Henk-Jan, 1997. "Welfare Over Time: Three Worlds of Welfare Capitalism in Panel Perspective," Journal of Public Policy, Cambridge University Press, vol. 17(03), pages 329-359, September.
    5. Bruce Headey & Robert Goodin & Ruud Muffels & Henk-Jan Dirven, 2000. "Is There a Trade-Off Between Economic Efficiency and a Generous Welfare State? A Comparison of Best Cases of `The Three Worlds of Welfare Capitalism’," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 50(2), pages 115-157, May.
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    Cited by:

    1. Christos Triantopoulos, 2014. "Financial Structure, Income Inequality and Privatization of Risk in the EU," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 64(3), pages 49-72, July-Sept.
    2. Eirini Andriopoulou & Panagiotis Tsakloglou, "undated". "The determinants of poverty transitions in Europe and the role of duration dependence," DEOS Working Papers 1119, Athens University of Economics and Business.
    3. Fouarge, Didier & Muffels, Ruud, 2000. "Persistent poverty in the Netherlands, Germany and the UK," MPRA Paper 13297, University Library of Munich, Germany.
    4. repec:hal:journl:hal-00393322 is not listed on IDEAS
    5. Caroline Dewilde, 2003. "Housing and Poverty: The 'Missing Link'," European Journal of Housing Policy, Taylor and Francis Journals, vol. 3(2), pages 127-153, August.
    6. M. Asghar Zaidi & Klaas de Vos, 2002. "Income Mobility of the Elderly in Great Britain and The Netherlands: A Comparative Investigation," Economics Series Working Papers 107, University of Oxford, Department of Economics.

    More about this item


    income dynamics; poverty; comparative analysis; welfare states; panel data; multinomial logit models;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty


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