Who Are the Chronic Poor? Evidence on the Extent and the Composition of Chronic Poverty in Germany

Arbeitspapier

Based on a multiple spells approach, this paper studies the extent and the composition of chronic poverty in Germany. The results indicate that about one third of cross-sectional poverty in a given year is chronic. The characteristics that are most closely associated with long-term poverty are economic inactivity and pensioner status, while the number of children and the gender of the household head do not seem to have a systematic effect. This is in contrast to cross-sectional results where the biggest poverty risk is usually unemployment and a large number of children, while pensioners do not face particularly high poverty risks. Estimates from a multiple spells hazard model further suggest that 6% of the population have unobserved characteristics that lead to low poverty exit and high re-entry rates, making these individuals likely candidates for chronic poverty. A comparison with results for Great Britain and the United States suggests that poverty is less persistent in Germany.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 779

Classification and Topics

• Classification: Wirtschaft ; Personal Income, Wealth, and Their Distributions ; Measurement and Analysis of Poverty ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
• Subject: chronic poverty ; poverty persistence ; multiple spells ; unobserved heterogeneity ; Armut ; Hysteresis ; Mikroökonometrie ; Schätzung ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Biewen, Martin
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/21460
• Last update: 10.03.2025, 11:42 AM CET