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Always Poor or Never Poor and Nothing in Between? Duration of Child Poverty in Germany

Author

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  • Fertig Michael

    (RWI Essen,Essen, Germany)

  • Tamm Marcus

    (RWI Essen,Essen, Germany)

Abstract

This paper analyses the duration of child poverty in Germany. Observing the entire income history from the individuals’ birth to their coming of age at age 18, we are able to analyse dynamics in and out of poverty for the entire population of children, whether they become poor at least once or not. Using duration models, we find that household composition, most importantly single parenthood, and the labour market status as well as level of education of the household head are the main driving forces behind exit from and re-entry into poverty and thus determine the (long-term) experience of poverty.

Suggested Citation

  • Fertig Michael & Tamm Marcus, 2010. "Always Poor or Never Poor and Nothing in Between? Duration of Child Poverty in Germany," German Economic Review, De Gruyter, vol. 11(2), pages 150-168, May.
    • Handle: RePEc:bpj:germec:v:11:y:2010:i:2:p:150-168
    DOI: 10.1111/j.1468-0475.2009.00470.x
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    References listed on IDEAS

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    2. Francesco Devicienti, 2011. "Estimating poverty persistence in Britain," Empirical Economics, Springer, vol. 40(3), pages 657-686, May.
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    8. repec:pri:cheawb:case_paxson_economic_status_paper.pdf is not listed on IDEAS
    9. Lorenzo Cappellari & Stephen P. Jemkins, 2002. "Who Stays Poor? Who Becomes Poor? Evidence from the British Household Panel Survey," Economic Journal, Royal Economic Society, vol. 112(478), pages 60-67, March.
    10. Martin Biewen, 2003. "Who Are the Chronic Poor?: Evidence on the Extent and the Composition of Chronic Poverty in Germany," Discussion Papers of DIW Berlin 350, DIW Berlin, German Institute for Economic Research.
    11. Carneiro, Pedro & Heckman, James J., 2003. "Human Capital Policy," IZA Discussion Papers 821, Institute of Labor Economics (IZA).
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    13. Hansen, Jörgen & Wahlberg, Roger, 2004. "Poverty Persistence in Sweden," IZA Discussion Papers 1209, Institute of Labor Economics (IZA).
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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. Marjan Maes, 2013. "Poverty persistence among the elderly in the transition from work to retirement," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 11(1), pages 35-56, March.
    3. Matthew Lindquist & Gabriella Sjögren Lindquist, 2012. "The dynamics of child poverty in Sweden," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1423-1450, October.
    4. Francesco Devicienti, 2011. "Estimating poverty persistence in Britain," Empirical Economics, Springer, vol. 40(3), pages 657-686, May.
    5. Tamm Marcus, 2010. "Child Benefit Reform and Labor Market Participation," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(3), pages 313-327, June.
    6. 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.
    7. Zabel, Cordula, 2011. "Lone mothers' participation in labor market programs for means-tested benefit recipients in Germany," IAB-Discussion Paper 201114, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    8. Krämer Walter & Arminger Gerhard, 2011. "“True Believers” or Numerical Terrorism at the Nuclear Power Plant," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 231(5-6), pages 608-620, October.
    9. Helmut Rainer & Stefan Bauernschuster & Natalia Danzer & Timo Hener & Christian Holzner & Janina Reinkowski, 2013. "Kindergeld," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 60, September.
    10. Victoria Maleeva & Majlinda Joxhe & Skerdilajda Zanaj, 2020. "Poverty in Russia: the Role of the Marital Status and Gender," DEM Discussion Paper Series 20-16, Department of Economics at the University of Luxembourg.
    11. Schneider, Kerstin & Schuchart, Claudia & Weishaupt, Horst & Riedel, Andrea, 2012. "The effect of free primary school choice on ethnic groups — Evidence from a policy reform," European Journal of Political Economy, Elsevier, vol. 28(4), pages 430-444.
    12. 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).
    13. Nguyen, Cuong Viet & Vu, Linh Hoang, 2014. "Should Parents Work Away from or Close to Home? The Effect of Temporary Parental Absence on Child Poverty and Children’s Time Use in Vietnam," MPRA Paper 52877, University Library of Munich, Germany.
    14. KYZYMA Iryna, 2013. "Changes in the patterns of poverty duration in Germany, 1992-2009," LISER Working Paper Series 2013-06, Luxembourg Institute of Socio-Economic Research (LISER).
    15. Iryna Kyzyma & Donald R. Williams, 2017. "Public cash transfers and poverty dynamics in Europe," Empirical Economics, Springer, vol. 52(2), pages 485-524, March.

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    More about this item

    Keywords

    Child poverty; duration analysis; unobserved heterogeneity;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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