Modelling Low Income Transitions

Lorenzo Cappellari and Stephen Jenkins

No 288, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: We examine the determinants of low income transitions using first-order Markov models that control for initial conditions effects (those found to be poor in the base year may be a nonrandom sample) and for attrition (panel retention may also be non-random). Our econometric model is a form of endogeneous switching regression, and is fitted using simulated maximum likelihood methods. The estimates, derived from British panel data for the 1990s, indicate that there is substantial genuine state dependence in poverty. We also provide estimates of low income transition rates and lengths of poverty and non-poverty spells for persons of different types.

Keywords: 'Modelling; low; income; transitions' (search for similar items in EconPapers)
JEL-codes: C23 C35 D31 I32 (search for similar items in EconPapers)
Pages: 40 p.
Date: 2002
New Economics Papers: this item is included in nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
https://www.diw.de/documents/publikationen/73/diw_01.c.38544.de/dp288.pdf (application/pdf)

Related works:
Journal Article: Modelling low income transitions (2004)
Working Paper: Modelling low income transitions (2002)
Working Paper: Modelling Low Income Transitions (2002)
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:diw:diwwpp:dp288

Access Statistics for this paper

More papers in Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Bibliothek ().