IDEAS home Printed from https://ideas.repec.org/p/cpd/pd2002/b2-1.html
   My bibliography  Save this paper

The persistence of poverty: true state dependence or unobserved heterogeneity? Some evidence from the Italian Survey on Household Income and Wealth

Author

Listed:
  • Anna Giraldo

    (Dip. di Scienze Statistiche, Univ. di Padova)

  • Enrico Rettore

    (Dip. di Scienze Statistiche, Univ. di Padova)

  • Ugo Trivellato

    (Dip. di Scienze Statistiche, Univ. di Padova)

Abstract

Evidence from several countries is that any household experiencing poverty today is much more likely to experience it again, which may be due to both unobserved heterogeneity (UH) and true state dependence (TSD). We point out that in this context there are two sources of UH: (1) the household ability to obtain income at a specific time period and (2) the way in which this ability evolves from that time period onwards. We test for TSD using a panel from Italy. After testing for the ignorability of the massive attrition plaguing the panel and accepting it, we do not find any sign of TSD.

Suggested Citation

  • Anna Giraldo & Enrico Rettore & Ugo Trivellato, 2002. "The persistence of poverty: true state dependence or unobserved heterogeneity? Some evidence from the Italian Survey on Household Income and Wealth," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 B2-1, International Conferences on Panel Data.
    • Handle: RePEc:cpd:pd2002:b2-1
    as

    Download full text from publisher

    File URL: http://econpapers.repec.org/cpd/2002/90_Giraldo.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andrea Brandolini, 1999. "The Distribution of Personal Income in Post-War Italy: Source Description, Data Quality, and the Time Pattern of Income Inequality," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 58(2), pages 183-239, September.
    2. Mark B. Stewart & Joanna K. Swaffield, 1999. "Low Pay Dynamics and Transition Probabilities," Economica, London School of Economics and Political Science, vol. 66(261), pages 23-42, February.
    3. Chamberlain, Gary, 1984. "Panel data," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 22, pages 1247-1318, Elsevier.
    4. Arellano, Manuel & Honore, Bo, 2001. "Panel data models: some recent developments," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 53, pages 3229-3296, Elsevier.
    5. Lorenzo Cappellari, 1999. "Low-pay transitions and attrition bias in Italy : An analysis using simulation based estimation," The Warwick Economics Research Paper Series (TWERPS) 532, University of Warwick, Department of Economics.
    6. 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.
    7. Francesco Devicienti, 2011. "Estimating poverty persistence in Britain," Empirical Economics, Springer, vol. 40(3), pages 657-686, May.
    8. 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.
    9. Duncan, Greg J & Gustafsson, Bjorn & Hauser, Richard & Schmauss, Gunther & Messinger, Hans & Muffels, Ruud & Nolan, Brian, 1993. "Poverty Dynamics in Eight Countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 6(3), pages 215-234.
    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. 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.
    2. Alem, Yonas, 2013. "Poverty Persistence and Intra-Household Heterogeneity in Occupations: Evidence from Urban Ethiopia," Working Papers in Economics 580, University of Gothenburg, Department of Economics.
    3. Thomas, Anne-Claire & Gaspart, Frédéric, 2015. "Does Poverty Trap Rural Malagasy Households?," World Development, Elsevier, vol. 67(C), pages 490-505.
    4. Giuliana Parodi & Dario Sciulli, 2012. "Disability and low income persistence in Italian households," International Journal of Manpower, Emerald Group Publishing Limited, vol. 33(1), pages 9-26, March.
    5. Parodi, Giuliana & Sciulli, Dario, 2012. "Disability and Social Exclusion Dynamics in Italian Households," MPRA Paper 42445, University Library of Munich, Germany.
    6. Miguel Sanchez-Martinez & Philip Davis, 2014. "A review of the economic theories of poverty," National Institute of Economic and Social Research (NIESR) Discussion Papers 435, National Institute of Economic and Social Research.
    7. Rafael Perez Ribas & Ana Flávia Machado, 2007. "Distinguishing Chronic Poverty from Transient Poverty in Brazil: Developing a Model for Pseudo-Panel Data," Working Papers 36, International Policy Centre for Inclusive Growth.
    8. Francesco Devicienti & Valentina Gualtieri, 2007. "The Dynamics and Persistence of Poverty: Evidence from Italy," LABORatorio R. Revelli Working Papers Series 63, LABORatorio R. Revelli, Centre for Employment Studies.
    9. Rafael Perez Ribas & Ana Flávia Machado & André Braz Golgher, 2006. "Fluctuations and persistence in poverty: a transient-chronic decomposition model for pseudo-panel data," Textos para Discussão Cedeplar-UFMG td290, Cedeplar, Universidade Federal de Minas Gerais.
    10. Alem, Yonas & Köhlin, Gunnar & Stage, Jesper, 2014. "The Persistence of Subjective Poverty in Urban Ethiopia," World Development, Elsevier, vol. 56(C), pages 51-61.
    11. Alem, Yonas, 2014. "Poverty Persistence and Intra-Household Heterogeneity in Occupations: Some Evidence from Ethiopia," RFF Working Paper Series dp-14-05-efd, Resources for the Future.
    12. Yonas Alem, 2015. "Poverty Persistence and Intra-Household Heterogeneity in Occupations: Evidence from Urban Ethiopia," Oxford Development Studies, Taylor & Francis Journals, vol. 43(1), pages 20-43, March.
    13. Ambra Poggi, 2007. "Does persistence of social exclusion exist in Spain?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(1), pages 53-72, April.
    14. Jorge A. Paz, 2002. "Una introducción a la dinámica de la pobreza en la Argentina," CEMA Working Papers: Serie Documentos de Trabajo. 226, Universidad del CEMA.
    15. FAYE Ousmane & ISLAM Nizamul & ZULU Eliya, 2011. "Poverty dynamics in Nairobi's slums: testing for true state dependence and heterogeneity effects," LISER Working Paper Series 2011-56, Luxembourg Institute of Socio-Economic Research (LISER).
    16. repec:dau:papers:123456789/10594 is not listed on IDEAS

    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. 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).
    2. 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.
    3. 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.
    4. 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.
    5. Ambra Poggi, 2007. "Does persistence of social exclusion exist in Spain?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(1), pages 53-72, April.
    6. 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.
    7. Lorenzo Cappellari & Stephen P. Jenkins, 2004. "Modelling low income transitions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(5), pages 593-610.
    8. Francesco Devicienti & Valentina Gualtieri, 2007. "The Dynamics and Persistence of Poverty: Evidence from Italy," LABORatorio R. Revelli Working Papers Series 63, LABORatorio R. Revelli, Centre for Employment Studies.
    9. Giulia Bettin & Claudia Pigini & Alberto Zazzaro, 2020. "Financial inclusion and poverty transitions: an empirical analysis for Italy," Mo.Fi.R. Working Papers 164, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    10. 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.
    11. Iryna Kyzyma, 2020. "How Poor Are the Poor? Looking beyond the Binary Measure of Income Poverty," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(4), pages 525-549, December.
    12. Francesco Devicienti, 2011. "Estimating poverty persistence in Britain," Empirical Economics, Springer, vol. 40(3), pages 657-686, May.
    13. repec:zbw:rwidps:0056 is not listed on IDEAS
    14. Bigsten, Arne & Shimeles, Abebe, 2008. "Poverty Transition and Persistence in Ethiopia: 1994-2004," World Development, Elsevier, vol. 36(9), pages 1559-1584, September.
    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.
    16. Alma Kudebayeva, 2018. "Chronic Poverty in Kazakhstan," CERGE-EI Working Papers wp627, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    17. Maes, Marjan, 2008. "Poverty persistence among Belgian elderly: true or spurious?," ISER Working Paper Series 2008-24, Institute for Social and Economic Research.
    18. repec:bla:germec:v:11:y:2010:i::p:150-168 is not listed on IDEAS
    19. Michael Fertig & Marcus Tamm, 2007. "Always Poor or Never Poor and Nothing in Between? Duration of Child Poverty in Germany," RWI Discussion Papers 0056, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
    20. FAYE Ousmane & ISLAM Nizamul & ZULU Eliya, 2011. "Poverty dynamics in Nairobi's slums: testing for true state dependence and heterogeneity effects," LISER Working Paper Series 2011-56, Luxembourg Institute of Socio-Economic Research (LISER).
    21. Glauben, Thomas & Herzfeld, Thomas & Wang, Xiaobing, 2006. "The Persistence of Poverty in Rural China: Applying an Ordered Probit and a Hazard Approach," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25249, International Association of Agricultural Economists.
    22. Alexander Ahammer & Stefan Kranzinger, 2017. "Poverty in Times of Crisis," Economics working papers 2017-03, Department of Economics, Johannes Kepler University Linz, Austria.

    More about this item

    Keywords

    Attrition ignorability; Discrete response panel data models; Poverty dynamics;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:cpd:pd2002:b2-1. 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: Sune Karlsson (email available below). General contact details of provider: .

    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.