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Poverty dynamics : an analysis of the 1994 and 1995 waves of the European Community Household Panel Survey
Date Issued
2000-07
Date Available
2009-04-06T16:25:37Z
Abstract
Recent poverty research internationally based on analysis of panel data has highlighted the importance of income dynamics. In this paper, we study mobility into and out of relative income poverty from one year to the next using data for twelve countries from the European Community Household Panel Survey (ECHP). The ECHP has unique potential as a harmonised data set to serve as the basis for comparisons of income and poverty dynamics across EU countries, and here we begin exploiting this potential by analysing income poverty transitions from Wave 1 to Wave 2. As well as describing the extent of these transitions, we analyse the pattern by fitting log-linear and linear by linear models commonly employed in the analysis of social mobility. Moving from general to specific models we show the relative impact of hierarchy, immobility and affinity effects. Our analysis shows that cross-national variation in short-term poverty dynamics is predominantly a consequence of "shift" rather than "association effects". Variation across countries in patterns of poverty persistence is extremely modest. Models that assume that the processes underlying poverty dynamics are constant across countries perform almost as well as those that allow for cross-national variability.
Type of Material
Working Paper
Publisher
Economic and Social Research Institute
Series
ESRI Working Paper
No. 129
Copyright (Published Version)
Economic and Social Research Institute, 2000
Subject – LCSH
Poverty--Research--European Union countries
Income distribution--European Union countries
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
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