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Movements Into and Out of Child Poverty in New Zealand: Results from the Linked Income Supplement

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  • Suzie Ballantyne
  • Simon Chapple
  • David C. Maré
  • Jason Timmins

Abstract

This paper considers the dynamics of child income poverty in New Zealand. Annual movements into and out of poverty by children’s households in New Zealand over the 1997/98, 1998/99, and 1999/2000 periods are analysed. The annual Income Supplement to the Household Labour Force Survey allows tracking of dwellings and people in two consecutive June quarterly weeks, and thus allows observation of changes in equivalised household disposable income over a June year. This project is the first to use the Linked Income Survey for analysis of income dynamics and is part of the Ministry of Social Policy’s ongoing research on family dynamics.New Zealand adult and child poverty transitions are compared. Child poverty transitions in New Zealand are compared and contrasted to those of five other countries—Britain, Germany, Hungary, Russia and Spain—where a similar current income measure of poverty is available. The frequency of poverty “trigger events” in New Zealand and their impact on the chances of children exiting and entering poverty are compared to similar data for Britain and West Germany.

Suggested Citation

  • Suzie Ballantyne & Simon Chapple & David C. Maré & Jason Timmins, 2004. "Movements Into and Out of Child Poverty in New Zealand: Results from the Linked Income Supplement," HEW 0402001, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwphe:0402001
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    References listed on IDEAS

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    1. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Peter Gottschalk & Sheldon Danziger, 1999. "Income Mobility and Exits from Poverty of American Children, 1970-1992," Boston College Working Papers in Economics 430, Boston College Department of Economics, revised 15 Feb 2001.
    3. Böheim, René & Jenkins, Stephen P., 2000. "Do current income and annual income measures provide different pictures of Britain's income distribution?," ISER Working Paper Series 2000-16, Institute for Social and Economic Research.
    4. 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.
    5. Duncan, Greg J & Gustafsson, Bjorn & Hauser, Richard & Schmauss, Gunther & Messinger, Hans & Muffels, Ruud & Nolan, Brian, 1993. "Poverty Dynamics in Eight Countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 6(3), pages 215-234.
    6. Peracchi, Franco & Welch, Finis, 1995. "How representative are matched cross-sections? Evidence from the Current Population Survey," Journal of Econometrics, Elsevier, vol. 68(1), pages 153-179, July.
    7. Dean Hyslop, 2000. "A Preliminary Analysis of the Dynamics of Individual Market and Disposable Incomes," Treasury Working Paper Series 00/15, New Zealand Treasury.
    8. Gregg, Paul & Wadsworth, Jonathan, 2000. "Mind the Gap, Please: The Changing Nature of Entry Jobs in Britain," Economica, London School of Economics and Political Science, vol. 67(268), pages 499-524, November.
    9. Stephen P. Jenkins, 2000. "Modelling household income dynamics," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(4), pages 529-567.
    10. Samuel Bowles & Herbert Gintis, 2002. "The Inheritance of Inequality," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 3-30, Summer.
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    Citations

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    Cited by:

    1. Michelle Poland & David C Maré, 2005. "Defining Geographic Communities," Urban/Regional 0509016, University Library of Munich, Germany.
    2. Crawford, Ron, 2009. "Variations in earnings growth: evidence from earnings transitions in the NZ Linked Income Survey," ISER Working Paper Series 2009-18, Institute for Social and Economic Research.
    3. Grimes, Arthur, 2005. "Regional and industry cycles in Australasia: Implications for a common currency," Journal of Asian Economics, Elsevier, vol. 16(3), pages 380-397, June.
    4. David C. Maré, 2003. "Ideas for Growth?," Working Papers 03_19, Motu Economic and Public Policy Research.
    5. Suzi Kerr & Andrew Aitken & Arthur Grimes, 2004. "Land Taxes and Revenue Needs as Communities Grow and," Public Economics 0403001, University Library of Munich, Germany.
    6. Dave Mare, 2004. "What Do Endogenous Growth Models Contribute?," Development and Comp Systems 0412002, University Library of Munich, Germany.
    7. John Micklewright, 2003. "Child Poverty in English-Speaking Countries," Papers inwopa03/25, Innocenti Working Papers, revised 2003.
    8. Arthur Grimes, 2005. "Intra & Inter-Regional Industry Shocks: A New Metric with an Application to Australasian Currency Union," Macroeconomics 0509019, University Library of Munich, Germany.
    9. David C Maré, 2005. "Indirect Effects of Active Labour Market Policies," HEW 0509004, University Library of Munich, Germany.
    10. John Micklewright, 2004. "Child Poverty in English-Speaking Countries," LIS Working papers 376, LIS Cross-National Data Center in Luxembourg.

    More about this item

    Keywords

    child poverty; household income; income mobility;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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