The Relationship between EU Indicators of Persistent and Current Poverty

Stephen Jenkins and Philippe Van Kerm

No 7071, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The current poverty rate and the persistent poverty rate are both included in the EU's portfolio of primary indicators of social inclusion. We show that there is a near-linear relationship between these two indicators across EU countries drawing on empirical analysis of EU-SILC and ECHP data. Using a prototypical model of poverty dynamics, we explain how the near-linear relationship arises and show how the model can be used to predict persistent poverty rates from current poverty information. In the light of the results, we discuss whether the EU's persistent poverty measure and the design of EU-SILC longitudinal data collection require modification.

Keywords: EU-SILC; poverty; Europe; persistent poverty; income poverty (search for similar items in EconPapers)
JEL-codes: D31 I32 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2012-12
New Economics Papers: this item is included in nep-eur
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Citations: View citations in EconPapers (2)

Published - published in: Social Indicators Research, 2014, 116(2), 611–638

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Related works:
Journal Article: The Relationship Between EU Indicators of Persistent and Current Poverty (2014)
Working Paper: The relationship between EU indicators of persistent and current poverty (2014)
Working Paper: The relationship between EU indicators of persistent and current poverty (2013)
Working Paper: The relationship between EU indicators of persistent and current poverty (2013)
Working Paper: The relationship between EU indicators of persistent and current poverty (2012)
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