Adaptation to Poverty in Long-Run Panel Data

Clark, Andrew; D'Ambrosio, Conchita; Ghislandi, Simone

Adaptation to Poverty in Long-Run Panel Data

Andrew Clark, Conchita D'Ambrosio and Simone Ghislandi

No 1508, CEPREMAP Working Papers (Docweb) from CEPREMAP

Abstract: We consider the link between poverty and subjective well-being, and focus in particular on potential adaptation to poverty. We use panel data on almost 54,000 individuals living in Germany from 1985 to 2012 to show first that life satisfaction falls with both the incidence and intensity of contemporaneous poverty. We then reveal that there is little evidence of adaptation within a poverty spell: poverty starts bad and stays bad in terms of subjective well-being. We cannot identify any cause of poverty entry which explains the overall lack of poverty adaptation.

Keywords: income; poverty; subjective well-being; adaptation; SOEP (search for similar items in EconPapers)
Pages: 26 pages
Date: 2015-05
New Economics Papers: this item is included in nep-eur, nep-hap and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:cpm:docweb:1508

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