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Journal Article

Estimating poverty persistence in Britain

Authors

Publication date

2011

Abstract

This article uses longitudinal data from the BHPS (1991-2006) to document low-income dynamics and persistence for individuals living in Britain. Poverty exit and re-entry rates are estimated, and the resulting distribution of time spent in poverty is calculated, both in single and in multiple-spell frameworks. Poverty persistence predictions are also produced for various subgroups of the populations. In order to do so, I estimate a multiple-spell model of transitions in and out of poverty, controlling for observed and correlated unobserved individual heterogeneity and for a potential initial condition problem. Components-of-variance models are also used to predict the number of years in poverty for the targeted groups. The two alternative modeling approaches are shown to produce a consistent picture of poverty persistence.

Published in

Empirical Economics

Volume and page numbers

40 , 657 -686

DOI

http://dx.doi.org/10.1007/s00181-010-0350-2

Subjects

Poverty and Income Dynamics

Links

http://serlib0.essex.ac.uk/record=b1597555~S5

Notes

Online in A/S except current year; Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*

#513464


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