Modelling Vulnerability in the UK

Sanghamitra Bandyopadhyay () and Frank Cowell ()

No 313, Economics Series Working Papers from University of Oxford, Department of Economics

Abstract: In this paper we examine the concept of vulnerability (Townsend 1994) within the context of income mobility of the poor. We test for the dynamics of vulnerable households in the UK using Waves 1 - 12 of the British Household Panel Survey and find that, of three different types of risks that we test for, household-specific shocks and economy-wide aggregate shocks have the greatest impact on consumption, in comparison to shocks to the income stream. Quantile-specific estimates reveal specific quantiles, particularly those around the poverty line which are most susceptible to be vulnerable to shocks to the income stream. The estimates are found to 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: 2007-03-01
New Economics Papers: this item is included in nep-eec and nep-ltv
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Citations: View citations in EconPapers (4)

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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:oxf:wpaper:313

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