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Article
Publication date: 14 August 2018

Amélia Bastos and Carla Machado

While the literature commonly analyses child poverty and social exclusion data covering a single year, less is known about children who fall in and out of poverty over a…

Abstract

Purpose

While the literature commonly analyses child poverty and social exclusion data covering a single year, less is known about children who fall in and out of poverty over a longer period. The present research intends to address this gap by investigating the dynamics of child poverty and social exclusion in Portugal. The purpose of this paper is twofold: first, to investigate child poverty and social exclusion trajectories; and second to examine their association with specific socio-demographic and economic factors.

Design/methodology/approach

Applying the definition of “at risk of poverty or social exclusion” given by Statistical Office of the European Communities (EUROSTAT), the analysis extends beyond the concept of income poverty. The authors apply Portuguese data sourced from the European Statistics on Income and Living Conditions for the period 2008–2011 to suggest a longitudinal poverty and social exclusion typology to analyse child poverty and social exclusion dynamics.

Findings

The findings report that children constitute the age group experiencing the worst poverty and social exclusion trajectories. Furthermore, the presence of children in the household seems to be an increasing factor of poverty and social exclusion. This information is relevant to improving the design of children and family-focussed social policies as well as contributing to the setting of targets in order to achieve EU 2020 goals including the alleviation of poverty in general and of child poverty in particular.

Originality/value

The main contribution to child poverty studies derives from our analysis of the dynamics driving child poverty and social exclusion. The authors apply a methodological framework that is applicable to other EU member states and can thus enable an international comparison of poverty and social exclusion trajectories.

Details

International Journal of Social Economics, vol. 45 no. 9
Type: Research Article
ISSN: 0306-8293

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Book part
Publication date: 26 August 2015

Luis Beccaria, Roxana Maurizio, Gustavo Vázquez and Manuel Espro

Latin America experienced a long period of sustained growth since 2003 that positively impacted social and labor market indicators, including poverty. This paper…

Abstract

Latin America experienced a long period of sustained growth since 2003 that positively impacted social and labor market indicators, including poverty. This paper contributes to the understanding of this process as it carries out a comparative study of poverty and indigence dynamics in five Latin American countries during 2003–2012. Specifically, it extends the analysis of a previously published study by broadening the time coverage and examining indigence mobility. It analyzes the extent to which countries with different levels of poverty (extreme poverty) incidence diverge in terms of exit and entry rates, and identifies the relative importance of the frequency and impact of events associated with poverty transitions. For this, a dynamic analysis of panel data is carried out using regular household surveys. Sizeable rates of poverty and indigence movements were observed in all five countries and it was found that a large proportion of poor or indigent households experienced positive events, mainly related to the labor market; however, only a small fraction of them actually exited poverty and indigence. It appeared, therefore, that even when the economy behaved reasonably well, high levels of labor turnover and income mobility (even of a negative nature) still prevail, mainly associated with the high level of precariousness and the undeveloped system of social protection that characterize the studied countries.

Details

Measurement of Poverty, Deprivation, and Economic Mobility
Type: Book
ISBN: 978-1-78560-386-0

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Book part
Publication date: 26 August 2015

Eirini Andriopoulou and Panos Tsakloglou

The paper analyses the effects of individual and household characteristics on current poverty status, while controlling for initial conditions, past poverty status and…

Abstract

The paper analyses the effects of individual and household characteristics on current poverty status, while controlling for initial conditions, past poverty status and unobserved heterogeneity in 14 European countries for the period 1994–2001, using the European Community Household Panel. The distinction between true state dependence and individual heterogeneity has important policy implications, since if the former is the main cause of poverty it may be crucial to break the ‘vicious circle’ of poverty using income-supporting social policies, whereas if it is the latter anti-poverty policies should focus primarily on education, training, development of personal skills and other labour market oriented policies. The empirical results are similar in qualitative terms but rather different in quantitative terms across the EU countries covered in the paper. State dependence remains significant in all model specifications, even after controlling for unobserved heterogeneity or when removing possible endogeneity bias. Higher poverty rates and higher poverty persistence are associated with particular welfare state regimes, although the link is substantially weakened when other explanatory variables are included in the analysis.

Details

Measurement of Poverty, Deprivation, and Economic Mobility
Type: Book
ISBN: 978-1-78560-386-0

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Article
Publication date: 7 November 2016

Jennifer Fernández-Ramos, Ana K. Garcia-Guerra, Jorge Garza-Rodriguez and Gabriela Morales-Ramirez

More than half of the Mexican population lives in poverty. While there are many studies about poverty in Mexico, there are very few about the dynamics of poverty. The…

Abstract

Purpose

More than half of the Mexican population lives in poverty. While there are many studies about poverty in Mexico, there are very few about the dynamics of poverty. The purpose of this paper is to measure chronic and transient poverty in Mexico and to analyze its determinants.

Design/methodology/approach

Based on the spells approach, a transition matrix was estimated and a multinomial logistic regression analysis was conducted to investigate the effects of various socioeconomic and demographic variables upon the dynamics of poverty.

Findings

It was found that 36 percent of households are chronically poor and 64 percent are transiently poor. The results show that variables directly related to chronic poverty are belonging to an ethnic minority group, living in a rural area, a large family size, having a high percentage of older adults and children in the household and having a female household head. Having more education, having more assets, the age of the household head and having access to potable water and electricity in the household are variables positively related with the probability of escaping poverty.

Originality/value

To the authors knowledge, this is the first study on the dynamics of poverty using the spells approach for Mexico as a whole, not just for urban areas. The value of this work is that it estimates chronic and transitory poverty in Mexico as well as their possible determinants. The study findings can be used by the government to design and implement public policies to alleviate both chronic and transient poverty in Mexico.

Details

International Journal of Social Economics, vol. 43 no. 11
Type: Research Article
ISSN: 0306-8293

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Book part
Publication date: 16 November 2016

Sanghamitra Bandyopadhyay

In this paper, I examine the concept of ‘vulnerability’ within the context of income mobility of the poor. While the concept of poverty is well developed, the concept of…

Abstract

In this paper, I examine the concept of ‘vulnerability’ within the context of income mobility of the poor. While the concept of poverty is well developed, the concept of vulnerability is less established in the economic literature. I test for the dynamics of vulnerable households in the United Kingdom using Waves 1–12 of the British Household Panel Survey and find that, of three different types of risks for which I test, household-specific shocks and economy-wide aggregate shocks have the greatest impact on consumption, in comparison to shocks to the income stream. I find vulnerable households up to at least 10 percentile points above the poverty line. Savings and earnings from a second job are not significantly associated with smoothing consumption of all vulnerable households. The results strongly indicate that income transfers and benefits assist the vulnerable in smoothing consumption. Thus, traditional poverty alleviating policies are not likely to assist the vulnerable.

Details

Inequality after the 20th Century: Papers from the Sixth ECINEQ Meeting
Type: Book
ISBN: 978-1-78560-993-0

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Book part
Publication date: 26 August 2015

Van Q. Tran, Sabina Alkire and Stephan Klasen

There has been a rapid expansion in the literature on the measurement of multidimensional poverty in recent years. This paper focuses on the longitudinal aspects of…

Abstract

There has been a rapid expansion in the literature on the measurement of multidimensional poverty in recent years. This paper focuses on the longitudinal aspects of multidimensional poverty and its link to dynamic income poverty measurement. Using panel household survey data in Vietnam from 2007, 2008, and 2010, the paper analyses the prevalence and dynamics of both multidimensional and monetary poverty from the same dataset. The results show that the monetary poor (or non-poor) are not always multidimensionally poor (or non-poor) – indeed the overlap between the two measures is much less than 50 percent. Additionally, monetary poverty shows faster progress as well as a higher level of fluctuation than multidimensional poverty. We suggest that rapid economic growth as experienced by Vietnam has had a larger and more immediate impact on monetary than on multidimensional poverty.

Details

Measurement of Poverty, Deprivation, and Economic Mobility
Type: Book
ISBN: 978-1-78560-386-0

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Article
Publication date: 1 May 2000

Tindara Addabbo and Massimo Baldini

Poverty dynamics and the ability of the Italian welfare system to reduce poverty are investigated by using the 1991‐1995 panel of the Bank of Italy’s Survey of Household…

Abstract

Poverty dynamics and the ability of the Italian welfare system to reduce poverty are investigated by using the 1991‐1995 panel of the Bank of Italy’s Survey of Household Income and Wealth. Households most exposed to poverty live in the South, have a larger size, a young or female head, with a low educational level or a discontinuous work profile. The dynamic and static effectiveness (in terms of poverty reduction) of social transfers is analysed, as well as the factors affecting exclusion from the safety net. A closer look is taken at the effects of a minimum income guarantee in the experimental phase in Italy.

Details

International Journal of Manpower, vol. 21 no. 3/4
Type: Research Article
ISSN: 0143-7720

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Book part
Publication date: 26 August 2010

Francesco Devicienti, Fernando Groisman and Ambra Poggi

Poverty and informal employment are often regarded as correlated phenomena. Many empirical studies have shown that informal employment has a causal impact on household…

Abstract

Poverty and informal employment are often regarded as correlated phenomena. Many empirical studies have shown that informal employment has a causal impact on household poverty, mainly through low wages. Yet other studies focus on the reverse causality from poverty to informality, arising from a range of constraints that poverty poses to jobholders. Only recently have empirical researchers tried to study the simultaneous two-way relationship between poverty and informality. However, existing studies have relied upon cross-sectional data and static econometric models.

This chapter takes the next step and studies the dynamics of poverty and informality using longitudinal data. Our empirical analysis is based on a bivariate dynamic random-effect probit model and recent panel data from Argentina. The method used provides a means of assessing the persistence over time of poverty and informal employment at the individual level, while controlling for both observed and unobserved determinants of the two processes. The results show that both poverty and informal employment are highly persistent processes. Moreover, positive spillover effects are found from past poverty on current informal employment and from past informality to current poverty status, corroborating the view that the two processes are also shaped by interrelated dynamics in segmented labor markets.

Details

Studies in Applied Welfare Analysis: Papers from the Third ECINEQ Meeting
Type: Book
ISBN: 978-0-85724-146-7

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Book part
Publication date: 10 October 2017

Natalie Naïri Quinn

There is a paradox in the normative foundations for chronic and intertemporal poverty measurement. Measures that reflect particular aversion to chronicity of poverty

Abstract

There is a paradox in the normative foundations for chronic and intertemporal poverty measurement. Measures that reflect particular aversion to chronicity of poverty cannot also reflect particular aversion to fluctuations in the level of poverty when poverty is intense, yet good arguments are made in favour of each of these properties. I argue that the paradox may be explained if the poverty analyst implicitly predicts that an individual observed to experience persistent poverty will continue to experience poverty when unobserved. The paradox may then be resolved by separating the normative exercise of evaluation, applying a measure that reflects particular aversion to fluctuations, from a positive exercise of modelling and prediction. This proposal is illustrated by application to panel data from rural Ethiopia, covering the period 1994–2004. Several dynamic models are estimated, and a simple model with household-specific trends is found to give the best predictions of future wellbeing levels. Appropriately normalised measures of intertemporal poverty are applied to the predicted and observed trajectories of wellbeing, and results are found to differ substantially from naïve application of the measures to observed periods only. While similar results are obtained by naïve application of the measures that embody particular aversion to chronicity, separation of the normative and positive exercises maintains conceptual clarity.

Details

Research on Economic Inequality
Type: Book
ISBN: 978-1-78714-521-4

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Article
Publication date: 6 May 2020

Jabrane Amaghouss and Aoamar Ibourk

In recent years, there is growing recognition of the importance of geography and space in the analysis of economic convergence by focusing on the dynamics of monetary…

Abstract

Purpose

In recent years, there is growing recognition of the importance of geography and space in the analysis of economic convergence by focusing on the dynamics of monetary indicators. The analysis of spatial convergence based on socio-economic indicators are rare. These variables present a complement to understand the spatial dynamics of territorial units. The purpose of this paper is, first, to analyzes and describes trends in multidimensional poverty in Morocco and second it explores the convergence hypothesis.

Design/methodology/approach

Data are driven from HCP (2017). It concerns 75 provinces over the period 2004 and 2014. In addition to the availability of data, this period corresponds to significant changes in public policy. The nature of the observations necessitates the use of the spatial analysis techniques.

Findings

The results show that poverty is a geographical phenomenon with low speed of convergence. The paper propose some solutions to help policymakers implement an effective targeting policy aimed at reducing spatial inequalities in terms of multidimensional poverty in Morocco.

Originality/value

The analysis of spatial convergence based on socio-economic indicators are rare. This paper will focus on the convergence of the poverty index for a developing country.

Details

International Journal of Development Issues, vol. 19 no. 2
Type: Research Article
ISSN: 1446-8956

Keywords

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