Modelling low income transitions

Arbeitspapier

We examine the determinants of low income transitions using first-order Markov models that control for initial conditions effects (those found to be poor in the base year may be a non-random sample) and for attrition (panel retention may also be non-random). Our econometric model is a form of endogeneous switching regression, and is fitted using simulated maximum likelihood methods. The estimates, derived from British panel data for the 1990s, indicate that there is substantial genuine state dependence in poverty. We also provide estimates of low income transition rates and lengths of poverty and non-poverty spells for persons of different types.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DIW Discussion Papers ; No. 288

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Measurement and Analysis of Poverty ; Personal Income, Wealth, and Their Distributions
• Subject: Armut ; Niedrigeinkommen ; Soziale Mobilität ; Ökonometrisches Modell ; Mikroökonometrie ; Schätzung ; Theorie ; Großbritannien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cappellari, Lorenzo ; Jenkins, Stephen P.
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/18272
• Last update: 10.03.2025, 11:44 AM CET