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http://hdl.handle.net/10419/21460
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| Title: | | Who Are the Chronic Poor? Evidence on the Extent and the Composition of Chronic Poverty in Germany  |
| Authors: | | Biewen, Martin |
| Issue Date: | | 2003 |
| Series/Report no.: | | IZA Discussion paper series 779 |
| Abstract: | | Based on a multiple spells approach, this paper studies the extent and the composition of chronic poverty in Germany. The results indicate that about one third of cross-sectional poverty in a given year is chronic. The characteristics that are most closely associated with long-term poverty are economic inactivity and pensioner status, while the number of children and the gender of the household head do not seem to have a systematic effect. This is in contrast to cross-sectional results where the biggest poverty risk is usually unemployment and a large number of children, while pensioners do not face particularly high poverty risks. Estimates from a multiple spells hazard model further suggest that 6% of the population have unobserved characteristics that lead to low poverty exit and high re-entry rates, making these individuals likely candidates for chronic poverty. A comparison with results for Great Britain and the United States suggests that poverty is less persistent in Germany. |
| Subjects: | | chronic poverty poverty persistence multiple spells unobserved heterogeneity |
| JEL: | | D31 I32 C23 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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