Poverty Dynamics Among Young Americans

Simon Burgess () and Carol Propper

No 1362, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper characterizes the nature of poverty from a dynamic life-cycle perspective. Using panel data from the National Longitudinal Survey of Youth, we find that 40% of young Americans experienced at least one year of poverty, and most of these experienced one or two years. A significant group, by age 34, had suffered five or more years of poverty out of thirteen. The overall poverty rate of 12.9% for this sample averages these different life-cycle paths. We investigate poverty transition rates and find an average annual outflow rate of 40% and an inflow rate of 6%.

Keywords: Persistent Poverty; Poverty Dynamics (search for similar items in EconPapers)
JEL-codes: I32 (search for similar items in EconPapers)
Date: 1996-03
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