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Who are the chronic poor? An econometric analysis of chronic poverty in germany

Martin Biewen

A chapter in Dynamics of Inequality and Poverty, 2006, pp 31-62 from Emerald Group Publishing Limited

Abstract: Based on a multiple spells approach, this paper studies the extent and the composition of chronic poverty in Germany. The results indicate that about one-third of cross-sectional poverty in a given year is chronic. The characteristics that are most closely associated with long-term poverty are economic inactivity and pensioner status, while the number of children and the gender of the household head do not seem to have a systematic effect. This is in contrast to cross-sectional results where the biggest poverty risk is usually unemployment and a large number of children, while pensioners do not face particularly high poverty risks. Estimates from a multiple spells hazard model further suggest that 6% of the population have unobserved characteristics that lead to low poverty exit and high re-entry rates, making these individuals likely candidates for chronic poverty. A comparison with results for Great Britain and the United States suggests that poverty is less persistent in Germany.

Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:eme:reinzz:s1049-2585(06)13002-1

DOI: 10.1016/S1049-2585(06)13002-1

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