49 Pages Posted: 14 Jul 2008
Date Written: February 2001
Abstract: This paper is motivated by the lack of any obvious relationship between aggregate poverty and unemployment in Great Britain. We derive a framework based on individuals' risks of unemployment and poverty, and how these vary over the economic cycle. Analysing the British Household Panel Survey for 1991-96, we are able to square the micro evidence - that unemployment matters for poverty - with the macro picture - that there's no strong link. We then go on to identify which household and individual characteristics are associated with whether an individual's poverty risk is vulnerable to the economic cycle.
Suggested Citation: Suggested Citation
Gardiner, Karen and Propper, Carol, Why Rising Tides Dont Lift All Boats? An Explanation of the Relationship between Poverty and Unemployment in Britain (February 2001). LSE STICERD Research Paper No. CASE046. Available at SSRN: https://ssrn.com/abstract=1158937