Longitudinal Poverty and Income Inequality a Comparative Panel Study for the Netherlands, Germany and the UK

Tilburg University OSA Working Paper No. 2000-6

34 Pages Posted: 19 Jan 2012

See all articles by Ruud Muffels

Ruud Muffels

Tilburg University

Didier Fouarge

Maastricht University

Ronald Dekker

ReflecT, Tilburg University; Economics of Innovation, Delft University of Technology

Date Written: January 1, 2000

Abstract

The increasing availability of longitudinal data on income in Europe greatly facilitates the analysis of income and poverty dynamics. In this paper, the results of longitudinal data- analyses on income and poverty in three European welfare states are reported. Using panel data for Germany, the Netherlands and the UK a variety of longitudinal inequality and poverty measures have been applied to reveal these dynamics. The focus will be on so-called poverty profiles indicating whether people belong to the permanent poor, the transient poor, the recurrent poor or the never poor. Multinomial regression models are estimated that aim to explain the likelihood of belonging to each of the poverty profiles over time and on the events that trigger the belonging to the poverty profiles over time. Our results show that there is a great deal of economic mobility in and out of poverty over time. Most of the poor are only poor for a short period of time but, nevertheless, a substantial part of the population is found to be persistent poor. This is particularly the case in the UK. In matured welfare states, income mobility and persistency of poverty are co-occurring. Our analysis of poverty profiles shows that especially labor market events trigger the belonging to the persistent, the recurrent or the transient poor.

Suggested Citation

Muffels, Ruud and Fouarge, Didier and Dekker, Ronald, Longitudinal Poverty and Income Inequality a Comparative Panel Study for the Netherlands, Germany and the UK (January 1, 2000). Tilburg University OSA Working Paper No. 2000-6. Available at SSRN: https://ssrn.com/abstract=1988200 or http://dx.doi.org/10.2139/ssrn.1988200

Ruud Muffels (Contact Author)

Tilburg University ( email )

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Didier Fouarge

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

Ronald Dekker

ReflecT, Tilburg University ( email )

P.O. Box 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands

HOME PAGE: http://www.tilburguniversity.nl/reflect

Economics of Innovation, Delft University of Technology ( email )

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2628 BX Delft
Netherlands

HOME PAGE: http://www.eci.tbm.tudelft.nl/live/pagina.jsp?id=e2b14b2c-3665-4449-8212-b557a9d29965&lang=nl

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