Who Stays Poor? Who Becomes Poor? Evidence from the British Household Panel Survey

8 Pages Posted: 27 Dec 2002

See all articles by Lorenzo Cappellari

Lorenzo Cappellari

Catholic University of the Sacred Heart of Milan; University of Essex - Institute for Social and Economic Research (ISER); Institute for the Study of Labor (IZA)

Stephen P. Jenkins

London School of Economics & Political Science (LSE) - Department of Social Policy and Administration; Institute for the Study of Labor (IZA); University of Essex - Institute for Social and Economic Research (ISER)

Abstract

We estimate a first-order Markov model of poverty persistence and entry rates for working-age Britons and demonstrate the importance of controlling for endogenous selection via initial poverty status and attrition. Predicted poverty transition rates reveal substantial heterogeneity in poverty transition rates, but there is also substantial genuine state dependence in poverty.

Suggested Citation

Cappellari, Lorenzo and Jenkins, Stephen P., Who Stays Poor? Who Becomes Poor? Evidence from the British Household Panel Survey. Available at SSRN: https://ssrn.com/abstract=312197

Lorenzo Cappellari (Contact Author)

Catholic University of the Sacred Heart of Milan ( email )

Largo Gemelli, 1
Via Necchi 9
Milan, MI 20123
Italy

University of Essex - Institute for Social and Economic Research (ISER)

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Stephen P. Jenkins

London School of Economics & Political Science (LSE) - Department of Social Policy and Administration ( email )

Houghton Street
London, England WC2A 2AE
United Kingdom

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

University of Essex - Institute for Social and Economic Research (ISER) ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom
+44 120 687 3374 (Phone)
+44 120 687 3151 (Fax)

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