Skip to content

Journal Article

Income dynamics and the life cycle -journal article reference-

Authors

Publication date

2006

Abstract

This article argues that our understanding of income and poverty dynamics benefits from taking a life-cycle perspective. A person's age and family circumstances - the factors that shape their life cycle - affect the likelihood of experiencing key life events, such as partnership formation, having children, or retirement; this in turn affects their probability of experiencing rising, falling, or other income trajectories. Using ten waves of the British Household Panel Survey, we analyse the income trajectories of people at different stages in their lives in order to build a picture of income dynamics over the whole life cycle. We find that particular life events are closely associated with either rising or falling trajectories, but that there is considerable heterogeneity in income trajectories following these different events. Typically, individuals experiencing one of these life events are around twice as likely to experience a particular income trajectory, but most individuals will not follow the trajectory most commonly associated with that life event. This work improves our understanding of the financial impact of different life events and provides an indication of how effectively the welfare state cushions people against the potentially adverse impact of these events.

Published in

Journal of Social Policy

Volume

35 (3):411-435

Subjects

Income Dynamics and Life Course Analysis

Links

http://serlib0.essex.ac.uk/record=b1641582

Notes

Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*

#508531


Research home

Research home

News

Latest findings, new research

Publications search

Search all research by subject and author

Podcasts

Researchers discuss their findings and what they mean for society

Projects

Background and context, methods and data, aims and outputs

Events

Conferences, seminars and workshops

Survey methodology

Specialist research, practice and study

Taking the long view

ISER's annual report

Themes

Key research themes and areas of interest