EconPapers    
Economics at your fingertips  
 

Once poor, always poor? Do initial conditions matter? Evidence from the ECHP

Eirini Andriopoulou () and Panos Tsakloglou

No 1127, DEOS Working Papers from Athens University of Economics and Business

Abstract: The paper analyzes the effects of individual and household characteristics on current poverty status, while controlling for initial conditions, past poverty status and unobserved heterogeneity in 14 European Countries for the period 1994-2000, using the European Community Household Panel. The distinction between true state dependence and individual heterogeneity has very important policy implications, since if the former is the main cause of poverty it is of paramount importance to break the �vicious circle� of poverty using income-supporting social policies, whereas if it is the latter anti-poverty policies should focus primarily on education, training, development of personal skills and other labour market oriented policies. The empirical results are similar in qualitative but rather different in quantitative terms across EU countries. State dependence remains significant in all specifications, even after controlling for unobserved heterogeneity or when removing possible endogeneity bias.

Keywords: Poverty dynamics; State dependence; EU; ECHP (search for similar items in EconPapers)
JEL-codes: I32 I38 (search for similar items in EconPapers)
Date: 2011-09-25
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://wpa.deos.aueb.gr/docs/Andriopoulou&Tsakloglou_DEOS_Sep2011.pdf First version (application/pdf)

Related works:
Working Paper: Once Poor, Always Poor? Do Initial Conditions Matter? Evidence from the ECHP (2011) Downloads
Working Paper: Once Poor, Always Poor? Do Initial Conditions Matter? Evidence from the ECHP 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:aue:wpaper:1127

Access Statistics for this paper

More papers in DEOS Working Papers from Athens University of Economics and Business Contact information at EDIRC.
Series data maintained by Ekaterini Glynou ().

 
Page updated 2017-09-29
Handle: RePEc:aue:wpaper:1127