Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/21436
Authors: 
Jenkins, Stephen P.
Cappellari, Lorenzo
Year of Publication: 
2002
Series/Report no.: 
IZA Discussion paper series 504
Abstract: 
We examine the determinants of low income transitions using first-order Markov models that control for initial conditions effects (those found to be poor in the base year may be a nonrandom sample) and for attrition (panel retention may also be non-random). Our econometric model is a form of endogeneous switching regression, and is fitted using simulated maximum likelihood methods. The estimates, derived from British panel data for the 1990s, indicate that there is substantial genuine state dependence in poverty. We also provide estimates of low income transition rates and lengths of poverty and non-poverty spells for persons of different types.
Subjects: 
poverty dynamics
state dependence
first-order Markov
simulated maximum likelihood
JEL: 
C35
I32
C23
D31
Document Type: 
Working Paper

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