Modelling vulnerability in the UK

Sanghamitra Bandyopadhyay () and Frank Cowell ()

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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)
Pages: 37 pages
Date: 2007-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://eprints.lse.ac.uk/2692/ Open access version. (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:ehl:lserod:2692

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