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Understanding the Drivers of Poverty Dynamics in Australian Households

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  • HIELKE BUDDELMEYER
  • SHER VERICK

Abstract

This paper contributes to the growing literature on poverty dynamics in Australian households. The results reveal that a range of life‐changing events, household head, partner and demographic characteristics have an impact on both the likelihood of remaining poor and slipping into poverty. These findings have important implications for Australian policymakers: tertiary education and employment are key factors in keeping households out of poverty; having a disability or living in outer‐regional or remote areas increases the probability of becoming poor and remaining in such a situation; and finally, life‐changing events, especially becoming separated, can lead households into persistent poverty.

Suggested Citation

  • Hielke Buddelmeyer & Sher Verick, 2008. "Understanding the Drivers of Poverty Dynamics in Australian Households," The Economic Record, The Economic Society of Australia, vol. 84(266), pages 310-321, September.
    • Handle: RePEc:bla:ecorec:v:84:y:2008:i:266:p:310-321
    DOI: 10.1111/j.1475-4932.2008.00493.x
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    References listed on IDEAS

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    1. Lorenzo Cappellari & Stephen P. Jenkins, 2004. "Modelling low income transitions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(5), pages 593-610.
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    4. Annie Abello & Ann Harding, 2006. "Income Mobility and Financial Disadvantage: Australian Children," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 13(1), pages 31-48.
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    Cited by:

    1. Alexander Ahammer & Stefan Kranzinger, 2017. "Poverty in Times of Crisis," Economics working papers 2017-03, Department of Economics, Johannes Kepler University Linz, Austria.
    2. repec:ehl:lserod:121085 is not listed on IDEAS
    3. Ayşenur Acar & Cem Baslevent, 2013. "Examination of the transition of Turkish households into and out of poverty between 2007-2010," EcoMod2013 5779, EcoMod.
    4. Prieto Suarez, Joaquin, 2023. "Degrees of vulnerability to poverty: a low-income dynamics approach for Chile," LSE Research Online Documents on Economics 121993, London School of Economics and Political Science, LSE Library.
    5. Danielle Venn & Boyd Hunter, 2018. "Poverty transitions in non-remote Indigenous households: The role of labour market and household dynamics," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 21(1), pages 21-44.
    6. Sırma Demir Şeker & Meltem Dayıoğlu, 2015. "Poverty Dynamics in Turkey," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(3), pages 477-493, September.
    7. FUSCO Alessio & ISLAM Nizamul, 2012. "Understanding the drivers of low income transitions in Luxembourg," LISER Working Paper Series 2012-31, Luxembourg Institute of Socio-Economic Research (LISER).
    8. Joaquín Prieto, 2024. "Degrees of vulnerability to poverty: A low-income dynamics approach for Chile," Working Papers 666, ECINEQ, Society for the Study of Economic Inequality.
    9. Peter Saunders, 2013. "Researching poverty: Methods, results and impact," The Economic and Labour Relations Review, , vol. 24(2), pages 205-218, June.
    10. Birhanu, Mulugeta Y. & Ambaw, Birhanu & Mulu, Yohannis, 2017. "Dynamics of multidimensional child poverty and its triggers: Evidence from Ethiopia using Multilevel Mixed Effect Model," MPRA Paper 79377, University Library of Munich, Germany.
    11. Roger Wilkins, 2021. "Economic Wellbeing," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 469-481, December.
    12. Elliott Fan & Chris Ryan, 2011. "Reconciling income mobility and welfare persistence," CEPR Discussion Papers 651, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    13. Kanabar, Ricky, 2017. "In or out? Poverty dynamics among older individuals in the UK," Journal of Pension Economics and Finance, Cambridge University Press, vol. 16(4), pages 509-553, October.
    14. Alfred Michael Dockery & Richard Seymour & Rachel Ong, 2010. "Life on the Minimum Wage in Australia: An Empirical Investigation," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 13(1), pages 1-26.
    15. Sara Ayllón, 2013. "Understanding poverty persistence in Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 4(2), pages 201-233, June.
    16. Joan R. Rodgers, 2012. "Living Arrangements and Income Poverty," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 15(3), pages 217-234.
    17. Aysenur Acar & Cem Baslevent, 2014. "Examination of the Transitions of Households into and out of Poverty in Turkey," Working Papers 015, Bahcesehir University, Betam.
    18. REINSTADLER Anne & RAY Jean-Claude, 2010. "Macro Determinants of Individual Income Poverty in 93 Regions of Europe," LISER Working Paper Series 2010-13, Luxembourg Institute of Socio-Economic Research (LISER).
    19. Ruud Gerards & Riccardo Welters, 2020. "Liquidity Constraints, Unemployed Job Search and Labour Market Outcomes," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(3), pages 625-646, June.
    20. Mitra, Sophie & Posarac, Aleksandra & Vick, Brandon, 2011. "Disability and poverty in developing countries : a snapshot from the world health survey," Social Protection Discussion Papers and Notes 62564, The World Bank.

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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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