IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v34y2002i15p1903-1916.html
   My bibliography  Save this article

Climbing out of poverty, falling back in: low income stability in Spain

Author

Listed:
  • Olga Canto

Abstract

The study of the probability of entering or escaping a low income spell is not sufficient to fully describe a household's experience in deprivation. If poverty spells are recurrent in time, the persistency of poverty for a given household is not completely described unless the household's likelihood of a fall back into deprivation shortly after exit is considered. It is found that by combining the re-entry equation results with those of the exit equation, one can discuss, in a comprehensive way, which household characteristics promote welfare stability or instability and poverty persistence or transience. Results indicate that one-third of households who manage to leave poverty in Spain return to it shortly after exit. This upward income mobility, if maintained for a year, appears to enable a state of non-poverty for a lengthy period. Better-educated households and households with a spouse are more stable in their income level. Also, the point reached in the income distribution after a jump out of poverty is more a determinant for reducing the household's re-entry probability than is the duration out of poverty.

Suggested Citation

  • Olga Canto, 2002. "Climbing out of poverty, falling back in: low income stability in Spain," Applied Economics, Taylor & Francis Journals, vol. 34(15), pages 1903-1916.
    • Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1903-1916
    DOI: 10.1080/00036840210129392
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210129392
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036840210129392?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ann Huff Stevens, 1999. "Climbing out of Poverty, Falling Back in: Measuring the Persistence of Poverty Over Multiple Spells," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 557-588.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dávila Quintana, C. Delia & Malo, Miguel A., 2012. "Poverty dynamics and disability: An empirical exercise using the European community household panel," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(4), pages 350-359.
    2. Francesco Devicienti & Valentina Gualtieri & Mariacristina Rossi, 2014. "The Persistence Of Income Poverty And Lifestyle Deprivation: Evidence From Italy," Bulletin of Economic Research, Wiley Blackwell, vol. 66(3), pages 246-278, July.
    3. Francesco Devicienti, 2011. "Estimating poverty persistence in Britain," Empirical Economics, Springer, vol. 40(3), pages 657-686, May.
    4. Katsushi S. Imai & Jing You, 2011. "Poverty Dynamics of Households in Rural China: Identifying Multiple Pathways for Poverty Transition," Discussion Paper Series DP2011-35, Research Institute for Economics & Business Administration, Kobe University.
    5. Olga Cantó & Coral del Río & Carlos Gradín, 2007. "What helps households with children in leaving poverty? Evidence from Spain," Research on Economic Inequality, in: Inequality and Poverty, pages 1-29, Emerald Group Publishing Limited.
    6. Amuedo-Dorantes, Catalina & Serrano-Padial, Ricardo, 2010. "Labor market flexibility and poverty dynamics," Labour Economics, Elsevier, vol. 17(4), pages 632-642, August.
    7. Katsushi S. Imai & Jing You, 2014. "Poverty Dynamics of Households in Rural China," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 76(6), pages 898-923, December.
    8. Oleksiy Ivaschenko & Cem Mete, 2008. "Asset-Based Poverty in Rural Tajikistan: Who Climbs out and Who Falls in?," WIDER Working Paper Series RP2008-26, World Institute for Development Economic Research (UNU-WIDER).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tue Gørgens & Dean Robert Hyslop, 2018. "The Specification of Dynamic Discrete-Time Two-State Panel Data Models," Econometrics, MDPI, vol. 7(1), pages 1-16, December.
    2. Hendrik Thiel & Stephan L. Thomsen, 2015. "Individual Poverty Paths and the Stability of Control-Perception," SOEPpapers on Multidisciplinary Panel Data Research 794, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Jesus Perez-Mayo, 2005. "Identifying deprivation profiles in Spain: a new approach," Applied Economics, Taylor & Francis Journals, vol. 37(8), pages 943-955.
    4. Dalit Contini & Nicola Negri, 2005. "Would Declining Exit Rates from Welfare Provide Evidence of Welfare Dependence in Homogeneous Environments?," LABORatorio R. Revelli Working Papers Series 39, LABORatorio R. Revelli, Centre for Employment Studies.
    5. Biewen Martin, 2005. "The Covariance Structure of East and West German Incomes and its Implications for the Persistence of Poverty and Inequality," German Economic Review, De Gruyter, vol. 6(4), pages 445-469, December.
    6. Asena Caner & Ed Wolff, 2002. "Asset Poverty in the United States, 1984-1999: Evidence from the Panel Study of Income Dynamics," Microeconomics 0209002, University Library of Munich, Germany.
    7. Rolf Aaberge & Magne Mogstad, 2006. "On the Definition and Measurement of Chronic Poverty," ICER Working Papers 36-2006, ICER - International Centre for Economic Research.
    8. Iryna Kyzyma, 2014. "Changes in the Patterns of Poverty Duration in Germany, 1992–2009," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S2), pages 305-331, November.
    9. Michael Fertig & Marcus Tamm, 2010. "Always Poor or Never Poor and Nothing in Between? Duration of Child Poverty in Germany," German Economic Review, Verein für Socialpolitik, vol. 11(2), pages 150-168, May.
    10. Stephanie Riegg Cellini & Signe-Mary McKernan & Caroline Ratcliffe, 2008. "The dynamics of poverty in the United States: A review of data, methods, and findings," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(3), pages 577-605.
    11. Stephen P. Jenkins, 2011. "Has the Instability of Personal Incomes been Increasing?," National Institute Economic Review, National Institute of Economic and Social Research, vol. 218(1), pages 33-43, October.
    12. Eduardo Fajnzylber, 2012. "Implicit redistribution in the Chilean Social Insurance System," Working Papers wp_019, Adolfo Ibáñez University, School of Government.
    13. Do, D. Phuong & Frank, Reanne & Finch, Brian Karl, 2012. "Does SES explain more of the black/white health gap than we thought? Revisiting our approach toward understanding racial disparities in health," Social Science & Medicine, Elsevier, vol. 74(9), pages 1385-1393.
    14. Zúñiga, Edwin & Slon, Pablo, 2006. "Poverty dynamics in Costa Rica with panel data from cross-sections," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    15. Jonsson, Jan O. & Mood, Carina & Bihagen, Erik, 2011. "Poverty in Sweden 1991-2007. Change, dynamics, and intergenerational transmission of poverty during economic recession and growth," Working Paper Series 10/2011, Stockholm University, Swedish Institute for Social Research.
    16. Ana Flavia Machado & Rafael Perez Ribas, 2010. "Do Changes in the Labour Market Take Families Out of Poverty? Determinants of Exiting Poverty in Brazilian Metropolitan Regions," Journal of Development Studies, Taylor & Francis Journals, vol. 46(9), pages 1503-1522.
    17. Marjan, MAES, 2008. "Poverty persistence among Belgian elderly in the transition from work to retirement : an empirical analysis," Discussion Papers (ECON - Département des Sciences Economiques) 2008042, Université catholique de Louvain, Département des Sciences Economiques.
    18. Connie Bayudan-Dacuycuy & Joseph Lim, 2014. "Chronic and Transient Poverty and Vulnerability to Poverty in the Philippines: Evidence Using a Simple Spells Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(1), pages 389-413, August.
    19. Chernick, Howard & Reschovsky, Andrew, 1997. "Who Pays the Gasoline Tax?," National Tax Journal, National Tax Association;National Tax Journal, vol. 50(2), pages 233-259, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1903-1916. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.