Conference Paper SMYE '10: XVth Spring Meeting of Young Economists, held 15-17 April, 2010, Luxembourg
The dynamics of poverty in pre-crisis Britain
This paper studies whether the length of time that working-age adults spend in poverty has changed in Britain between 1992 and 2006. I estimate poverty exit and re-entry hazard rate models in which key parameters of interest are allowed to vary with calendar time. Poverty spells length shortened while turnover in and out of low income rose across the period. Exit rates markedly increased in 1998 and kept substantially unchanged thereafter, while entry rates experienced a milder rise in 1997. Spells length has been found more sensitive to policy reforms than to the state of the economy. Families with children, and lone parents in particular, experienced the biggest drop in poverty duration.