Journal Article
Modelling low income transitions
Authors
Publication date
2004
Abstract
We examine the determinants of low income transitions using first-order Markov models that control for initial conditions effects (those found to be poor in the base year may be a non-random sample) and for attrition (panel retention may also be non-random). The model estimates, derived from British panel data for the 1990s, indicate that there is substantial state dependence in poverty, separate from persistence induced by heterogeneity. We also provide estimates of low income transition rates and lengths of poverty and non-poverty spells for persons of different types.
Published in
Journal of Applied Econometrics
Volume and page numbers
19: 593-610
, 593
-610
Links
http://serlib0.essex.ac.uk/search/sjournal+of+applied+econometrics/sjournal+of+applied+econometrics/1%2C1%2C2%2CB/frameset&FF=sjournal+of+applied+econometrics&2%2C%2C2/indexsort=-
Notes
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