Conference Paper Royal Economic Society Conference
Who Stays Poor? Who Becomes Poor? Evidence from the British Household Panel Survey
11 Apr 2001
We estimate a first-order Markov model of poverty persistence and entry rates for working-age Britons and demonstrate the importance of controlling for endogenous selection via initial poverty status and attrition. Predicted poverty transition rates reveal substantial heterogeneity in poverty transition rates, but there is also substantial genuine state dependence in poverty.