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Measuring the Effect of Spell Recurrence on Poverty Dynamics

  • Arranz, José Maria
  • Cantó, Olga

The analysis of poverty dynamics yields important insights about the expected effectiveness of alternative social policies on poverty reduction. This paper analyses the effect of spell recurrence on poverty dynamics taking into account multiple poverty and non-poverty spells. Using longitudinal data for Spain we obtain that the poverty exit and re-entry rates vary not only with personal or household characteristics but also with spell accumulation and with the duration of past spells. Results indicate that the effect of duration dependence is significant and turns out to be different by spell order. Our findings support progress towards incorporating full individual poverty trajectories more explicitly in estimating the likelihood of future poverty.

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File URL: http://www.wider.unu.edu/stc/repec/pdfs/wp2010/wp2010-72.pdf
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Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number wp2010-72.

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Length: 32 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:unu:wpaper:wp2010-72
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  1. Arnstein Aassve & Simon Burgess & Matt Dickson & Carol Propper, 2006. "Modelling poverty by not modelling poverty: an application of a simultaneous hazards approach to the UK," LSE Research Online Documents on Economics 6243, London School of Economics and Political Science, LSE Library.
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