EconPapers    
Economics at your fingertips  
 

Consumption and Income Poverty Over the Business Cycle

Bruce D. Meyer and James Sullivan ()

A chapter in Who Loses in the Downturn? Economic Crisis, Employment and Income Distribution, 2011, vol. 32, pp 51-82 from Emerald Publishing Ltd

Abstract: We examine the relationship between the business cycle and poverty for the period from 1960 to 2008 using income data from the Current Population Survey and consumption data from the Consumer Expenditure Survey. This new evidence on the relationship between macroeconomic conditions and poverty is of particular interest, given recent changes in antipoverty policies that have placed greater emphasis on participation in the labor market and in-kind transfers. We look beyond official poverty, examining alternative income poverty and consumption poverty, which have conceptual and empirical advantages as measures of the well-being of the poor. We find that both income and consumption poverty are sensitive to macroeconomic conditions. A 1 percentage point increase in unemployment is associated with an increase in the after-tax income poverty rate of 0.9–1.1 percentage points in the long run, and an increase in the consumption poverty rate of 0.3–1.2 percentage points in the long run. The evidence on whether income is more responsive to the business cycle than consumption is mixed. Income poverty does appear to be more responsive using national level variation, but consumption poverty is often more responsive to unemployment when using regional variation. Low percentiles of both income and consumption are sensitive to macroeconomic conditions, and in most cases, low percentiles of income appear to be more responsive than low percentiles of consumption.

Keywords: Poverty; Business Cycles; Unemployment; Consumption; Income (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://www.emeraldinsight.com/10.1108/S0147-9121(2 ... RePEc&WT.mc_id=RePEc (text/html)
Access to full text is restricted to subscribers

Related works:
Working Paper: Consumption and Income Poverty over the Business Cycle (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:rleczz:s0147-9121(2011)0000032005

Ordering information: This item can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
http://www.emeraldgr ... ies.htm?id=0147-9121

Access Statistics for this chapter

More chapters in Research in Labor Economics from Emerald Publishing Ltd
Bibliographic data for series maintained by Charlotte Maiorana ().

 
Page updated 2022-01-18
Handle: RePEc:eme:rleczz:s0147-9121(2011)0000032005