Poverty Profiles and Well-Being: Panel Evidence from Germany

Andrew Clark, Conchita D'Ambrosio and Simone Ghislandi

No 739, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)

Abstract: We consider the link between poverty and subjective well-being, and focus in particular on the role of time. We use panel data on 49,000 individuals living in Germany from 1992 to 2012 to uncover three empirical relationships. First, life satisfaction falls with both the incidence and intensity of contemporaneous poverty. Second, poverty scars: those who have been poor in the past report lower life satisfaction today, even when out of poverty. Last, the order of poverty spells matters: for a given number of years in poverty, satisfaction is lower when the years are linked together. As such, poverty persistence reduces well-being. These effects differ by population subgroups.

Keywords: Income; poverty; subjective well-being; SOEP (search for similar items in EconPapers)
JEL-codes: D60 I31 I32 (search for similar items in EconPapers)
Pages: 26 p.
Date: 2015
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 (13)

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Related works:
Chapter: Poverty Profiles and Well-Being: Panel Evidence from Germany (2015)
Working Paper: Poverty Profiles and Well-Being: Panel Evidence from Germany (2015)
Working Paper: Poverty Profiles and Well-Being: Panel Evidence from Germany (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwsop:diw_sp739

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