Low-Income Dynamics 1991-2004 (Great Britain)
The extent to which individuals living in low-income households at a point in time are simply experiencing transitory fluctuations in income, or are persistently experiencing low income, is clearly an important issue and one that can only be addressed using longitudinal data. The issues of income mobility and the extent of persistence of low incomes experienced by different groups are therefore addressed in this paper using data from the longitudinal British Household Panel Survey (BHPS).
In recent years, and up to HBAI 2003/04, the Low Income Dynamics Paper has been published first as an analytical paper, and repeated in a separate chapter in HBAI. However, the 2004/05 edition of HBAI has focussed mainly on the trends in relation to individuals who are persistently observed as living in low-income households, with a Website address directing to the full LID paper.
The information presented in this paper is based on analysis of fourteen waves of the British Household Panel Survey (BHPS), from 1991 up to and including 2004. This publication concentrates on low-income dynamics. It shows trends in relation to individuals who are persistently observed as living in low-income households and presents transition rates, that is, the likelihood of individuals to either enter or exit low income.