The relationship between EU indicators of persistent and current poverty

Publication type

Research Paper

Series Number

169

Series

CASEpapers

Authors

Publication date

March 15, 2013

Summary:

The current poverty rate and the persistent poverty rate are both included in the EU’s portfolio of primary indicators of social inclusion. We show that there is a near-linear relationship between these two indicators across EU countries drawing on empirical analysis of EU-SILC and ECHP data. Using a prototypical model of poverty dynamics, we explain how the near-linear relationship arises and show how the model can be used to predict persistent poverty rates from current poverty information. In the light of the results, we discuss whether the EU’s persistent poverty measure and the design of EU-SILC longitudinal data collection require modification.

Subject

Link

http://ideas.repec.org/p/cep/sticas/-169.html

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