Working Paper: CEPR ID: DP1362
Authors: Simon Burgess; Carol Propper
Abstract: This paper characterizes the nature of poverty from a dynamic life-cycle perspective. Using panel data from the National Longitudinal Survey of Youth, we find that 40% of young Americans experienced at least one year of poverty, and most of these experienced one or two years. A significant group, by age 34, had suffered five or more years of poverty out of thirteen. The overall poverty rate of 12.9% for this sample averages these different life-cycle paths. We investigate poverty transition rates and find an average annual outflow rate of 40% and an inflow rate of 6%.
Keywords: poverty dynamics; persistent poverty
JEL Codes: I32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Education (I29) | Poverty Duration (I32) |
| Timing of Childbearing (J13) | Poverty Duration (I32) |
| Higher Education (I23) | Likelihood of Experiencing Poverty (I32) |
| Age (J14) | Poverty Experience (I32) |
| Poverty Experience (I32) | Future Poverty Status (I32) |