Estimating Poverty Persistence in Britain

Francesco Devicienti (francesco.devicienti@unito.it)

No 1, LABORatorio R. Revelli Working Papers Series from LABORatorio R. Revelli, Centre for Employment Studies

Abstract: This paper uses longitudinal data from the BHPS, waves 1-8, to document low-income dynamics and persistence for individuals living in Britain in the 1990s. Poverty exit and re-entry rates are estimated and the resulting distribution of time spent in poverty is calculated, both in single and in multiple-spells frameworks. Poverty persistence predictions are also produced for various subgroups of the populations. To do this, I estimate a multiple-spell model of transitions in and out of poverty, controlling for observed and correlated unobserved individual heterogeneity and for a potential initial condition problem. Components-of-variance models are also used to predict the number of years in poverty for the targeted groups. The two sets of predictions are then compared.

Keywords: poverty persistence; hazard models; multiple spells; unobserved heterogeneity; variance-components models (search for similar items in EconPapers)
JEL-codes: C33 C41 I32 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Related works:
Journal Article: Estimating poverty persistence in Britain (2011)
Working Paper: Estimating Poverty Persistence in Britain (2002)
Working Paper: Estimating Poverty Persistence in Britain (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:cca:wplabo:1

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