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Is Household Wealth Sustainable? An Examination of Asset Poverty Reentry After an Exit

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  • Tammy Leonard
  • Wenhua Di

Abstract

This paper analyzed the influence of financial behaviors on the duration out of asset poverty while controlling for households’ life cycle and demographic characteristics. We found evidence for the existence of structural barriers to asset acquisition. Asset accumulation at or above levels equal to nine-months worth of income at the income-poverty level was important for improving a household’s odds of permanently escaping asset poverty, but a linear relationship between asset accumulation and the likelihood of returning to asset poverty did not emerge. Moreover, minimizing debt and diversifying the asset portfolio to include more productive assets were positively related to maintaining assets; but households should also consider the risks associated with portfolio allocations. Copyright Springer Science+Business Media New York 2014

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  • Tammy Leonard & Wenhua Di, 2014. "Is Household Wealth Sustainable? An Examination of Asset Poverty Reentry After an Exit," Journal of Family and Economic Issues, Springer, vol. 35(2), pages 131-144, June.
    • Handle: RePEc:kap:jfamec:v:35:y:2014:i:2:p:131-144
    DOI: 10.1007/s10834-013-9357-0
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    4. David Rothwell & Leanne Giordono & Jennifer Robson, 2020. "Public Income Transfers and Wealth Accumulation at the Bottom: Within and Between Country Differences in Canada and the United States," LWS Working papers 31, LIS Cross-National Data Center in Luxembourg.
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    6. Terri Friedline & Ilsung Nam & Vernon Loke, 2014. "Households’ Net Worth Accumulation Patterns and Young Adults’ Financial Health: Ripple Effects of the Great Recession?," Journal of Family and Economic Issues, Springer, vol. 35(3), pages 390-410, September.
    7. Soyoon Weon & David W. Rothwell, 2020. "Dynamics of Asset Poverty in South Korea," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(2), pages 639-657, July.
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    Asset; Poverty; Wealth;
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