The German spatial poverty divide: poorly endowed or bad luck?

Timm Bönke and Carsten Schröder

No 118, Working Papers from ECINEQ, Society for the Study of Economic Inequality

Abstract: We study inter-temporal changes in poverty for Germany from year 1978 to 2003, and we employ the bootstrap method to test for statistical significance of results. All results are decomposed by household type and region. Poverty estimates are particularly high for single parents. Most striking, however, is the poverty divide between the old and newly-formed German Federal States, with poverty being significantly higher in the latter. We conduct a nonlinear Oaxaca-Blinder decomposition to quantify the separate contribution of regional differences in households’ characteristics to the probability of being poor.

Keywords: Poverty; decomposition; expenditure patterns; necessities; Oaxaca-Blinder decomposition; bootstrap; equivalence scale. (search for similar items in EconPapers)
JEL-codes: H53 I38 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2009
New Economics Papers: this item is included in nep-geo and nep-ure
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Working Paper: The German spatial poverty divide: poorly endowed or bad luck? (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:inq:inqwps:ecineq2009-118

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