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The Relationship between EU Indicators of Persistent and Current Poverty

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  • Jenkins, Stephen P.

    (London School of Economics)

  • Van Kerm, Philippe

    (LISER (CEPS/INSTEAD))

Abstract

The current poverty rate and the persistent poverty rate are both included in the EU's portfolio of primary indicators of social inclusion. We show that there is a near-linear relationship between these two indicators across EU countries drawing on empirical analysis of EU-SILC and ECHP data. Using a prototypical model of poverty dynamics, we explain how the near-linear relationship arises and show how the model can be used to predict persistent poverty rates from current poverty information. In the light of the results, we discuss whether the EU's persistent poverty measure and the design of EU-SILC longitudinal data collection require modification.

Suggested Citation

  • Jenkins, Stephen P. & Van Kerm, Philippe, 2012. "The Relationship between EU Indicators of Persistent and Current Poverty," IZA Discussion Papers 7071, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7071
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    Cited by:

    1. Elena Bárcena-Martín & M. Carmen Blanco-Arana & Salvador Pérez-Moreno, 2017. "Dynamics of child poverty in the European countries," Working Papers 437, ECINEQ, Society for the Study of Economic Inequality.
    2. Elena Giarda & Gloria Moroni, 2018. "The Degree of Poverty Persistence and the Role of Regional Disparities in Italy in Comparison with France, Spain and the UK," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 136(1), pages 163-202, February.
    3. Pudney, Stephen & Diaz, Yadira, 2013. "Measuring poverty persistence with missing data with an application to Peruvian panel data," ISER Working Paper Series 2013-22, Institute for Social and Economic Research.
    4. P. Jenkins, Stephen & Jäntti, Markus, 2013. "Income mobility," ISER Working Paper Series 2013-23, Institute for Social and Economic Research.
    5. Giuliana Parodi & Dario Sciulli, 2019. "Disability and Social Exclusion in Italian Households," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(2), pages 767-784, July.
    6. Yang, Lin, 2017. "The relationship between poverty and inequality: concepts and measurement," LSE Research Online Documents on Economics 103491, London School of Economics and Political Science, LSE Library.
    7. Karpinska, Lilia & Śmiech, Sławomir, 2021. "Breaking the cycle of energy poverty. Will Poland make it?," Energy Economics, Elsevier, vol. 94(C).
    8. Kamila Fialová, 2022. "Low-Wage Employment in Czechia: A Persistent Burden," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 70(6), pages 475-498, June.
    9. Karolina GORAUS‐TAŃSKA & Piotr LEWANDOWSKI, 2019. "Minimum wage violation in central and eastern Europe," International Labour Review, International Labour Organization, vol. 158(2), pages 297-336, June.
    10. Aristei, David & Perugini, Cristiano, 2015. "The drivers of income mobility in Europe," Economic Systems, Elsevier, vol. 39(2), pages 197-224.
    11. Watson, Dorothy & Maître, Bertrand & Grotti, Raffaele & Whelan, Christopher T., 2018. "Poverty Dynamics of Social Risk Groups in the EU: an analysis of the EU Statistics on Income and Living Conditions, 2005 to 2014," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT345.
    12. Martin Biewen, 2014. "Poverty persistence and poverty dynamics," IZA World of Labor, Institute of Labor Economics (IZA), pages 103-103, November.
    13. Achille Lemmi & Donatella Grassi & Alessandra Masi & Nicoletta Pannuzi & Andrea Regoli, 2019. "Methodological Choices and Data Quality Issues for Official Poverty Measures: Evidences from Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(1), pages 299-330, January.
    14. Chiara Mussida & Dario Sciulli, 2022. "The dynamics of poverty in Europe: what has changed after the great recession?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(4), pages 915-937, December.
    15. Kristina Krell & Joachim R. Frick & Markus M. Grabka, 2017. "Measuring the Consistency of Cross-Sectional and Longitudinal Income Information in EU-SILC," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(1), pages 30-52, March.
    16. Lin Yang, 2017. "The relationship between poverty and inequality: Concepts and measurement," CASE Papers /205, Centre for Analysis of Social Exclusion, LSE.
    17. Sara Ayllón & András Gábos, 2017. "The Interrelationships between the Europe 2020 Poverty and Social Exclusion Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(3), pages 1025-1049, February.
    18. Karolina Goraus Tanska & Joanna Tyrowicz & Lucas Augusto van der Velde, 2020. "How rankings disguise gender inequality: A comparative analysis of cross-country gender equality rankings based on adjusted wage gaps," PLOS ONE, Public Library of Science, vol. 15(11), pages 1-21, November.
    19. Alessio Fusco & Philippe Van Kerm, 2023. "Measuring poverty persistence," Chapters, in: Jacques Silber (ed.), Research Handbook on Measuring Poverty and Deprivation, chapter 18, pages 192-200, Edward Elgar Publishing.
    20. Van Kerm, Philippe & Pi Alperin, Maria Noel, 2013. "Inequality, growth and mobility: The intertemporal distribution of income in European countries 2003–2007," Economic Modelling, Elsevier, vol. 35(C), pages 931-939.
    21. Simona Ballabio & Marianna Filandri & Lia Pacelli & Flavio Verrecchia, 2022. "Poverty of Young People: Context and Household Effects in North-Western Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 161(2), pages 819-842, June.
    22. Cathal O’Donoghue & Jason Loughrey & Denisa M. Sologon, 2018. "Decomposing the Drivers of Changes in Inequality During the Great Recession in Ireland using the Fields Approach," The Economic and Social Review, Economic and Social Studies, vol. 49(2), pages 173-200.
    23. Lubica Stiblarova, 2022. "European Cohesion Policy to the Rescue? Revising (Counter)-Cyclical Effects in the EU-28 Recipient Countries," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 70(9-10), pages 681-702, August.
    24. Andrea Cutillo & Michele Raitano & Isabella Siciliani, 2022. "Income-Based and Consumption-Based Measurement of Absolute Poverty: Insights from Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 161(2), pages 689-710, June.
    25. Pishnyak, A. & Khalina, N. & Nazarbaeva, E. & Goriainova, A., 2021. "The level and the profile of persistent poverty in Russia," Journal of the New Economic Association, New Economic Association, vol. 50(2), pages 56-73.

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    More about this item

    Keywords

    EU-SILC; poverty; Europe; persistent poverty; income poverty;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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