Who Stays Poor? Who Becomes Poor? Evidence from the British Household Panel Survey

Publication type

Conference Paper

Series

Royal Economic Society Conference

Authors

Publication date

April 11, 2001

Abstract:

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.

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