Modelling Vulnerability in the UK

Sanghamitra Bandyopadhyay () and Frank Cowell ()

STICERD - Distributional Analysis Research Programme Papers from Suntory and Toyota International Centres for Economics and Related Disciplines, LSE

Abstract: In this paper we examine the concept of "vulnerability" (Townsend 1994) within thecontext of income mobility of the poor. We test for the dynamics of vulnerablehouseholds in the UK using Waves 1 - 12 of the British Household Panel Survey andfind that, of three different types of risks that we test for, household-specific shocksand economy-wide aggregate shocks have the greatest impact on consumption, incomparison to shocks to the income stream. Quantile-specific estimates revealspecific quantiles, particularly those around the poverty line which are mostsusceptible to be vulnerable to shocks to the income stream. The estimates are foundto be robust to household composition and year-specific shocks.

Keywords: income variability; vulnerability; income dynamics; BHPS (search for similar items in EconPapers)
JEL-codes: D1 D31 I32 (search for similar items in EconPapers)
Date: 2007-02
New Economics Papers: this item is included in nep-eec
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Citations: View citations in EconPapers (3)

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https://sticerd.lse.ac.uk/dps/darp/darp89.pdf (application/pdf)

Related works:
Working Paper: Modelling vulnerability in the UK (2007)
Working Paper: Modelling Vulnerability in the UK (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:stidar:89

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