Adaptation to Poverty in Long-Run Panel Data

Andrew Clark, Conchita D'Ambrosio and Simone Ghislandi ()
Additional contact information
Simone Ghislandi: Bocconi University

No 8656, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We consider the link between poverty and subjective well-being, and focus in particular on potential adaptation to poverty. We use panel data on almost 54,000 individuals living in Germany from 1985 to 2012 to show first that life satisfaction falls with both the incidence and intensity of contemporaneous poverty. We then reveal that there is little evidence of adaptation within a poverty spell: poverty starts bad and stays bad in terms of subjective well-being. We cannot identify any cause of poverty entry which explains the overall lack of poverty adaptation.

Keywords: SOEP; adaptation; subjective well-being; poverty; income (search for similar items in EconPapers)
JEL-codes: D60 I31 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2014-11
New Economics Papers: this item is included in nep-eur, nep-hap and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published - published in: Review of Economics and Statistics, 2016, 98 (3), 591–600

Downloads: (external link)
https://docs.iza.org/dp8656.pdf (application/pdf)

Related works:
Journal Article: Adaptation to Poverty in Long-Run Panel Data (2016)
Working Paper: Adaptation to Poverty in Long-Run Panel Data (2016)
Working Paper: Adaptation to Poverty in Long-Run Panel Data (2016)
Working Paper: Adaptation to Poverty in Long-Run Panel Data (2015)
Working Paper: Adaptation to Poverty in Long-Run Panel Data (2014)
Working Paper: Adaptation to Poverty in Long-Run Panel Data (2014)
Working Paper: Adaptation to poverty in long-run panel data (2014)
Working Paper: Adaptation to Poverty in Long-Run Panel Data (2014)
Working Paper: Adaptation to Poverty in Long-Run Panel Data (2014)
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