Chapter 14 Understanding the Drivers of Low-Income Transitions in Luxembourg

Fusco, Alessio; Islam, Nizamul

doi:10.1108/s1049-2585(2012)0000020017

Cited by 12 publications

(13 citation statements)

References 20 publications

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“…9 However, Biewen (2009) highlights one notable drawback to dynamic binary choice models is that they do not allow for feedback effects, namely the framework assumes the dependent variable in period t − 1 is uncorrelated with covariates in period t (one recent exception is Ayllón, 2015). This particularly important in the context of modelling low-income dynamics, previous studies have found strong evidence of feedback effects (Cappellari and Jenkins, 2004;Arulampalam and Stewart, 2009;Biewen, 2009;Fusco and Islam, 2012).…”

Section: Modelling Individual-level Transitionsmentioning

confidence: 99%

“…Arranz and Canto (2008) also note the importance of retrospective data in determining contemporaneous poverty, specifically an individual's poverty history (time spent in and out of poverty). The extent to which this may cause a bias in estimates is mitigated by the fact that the approach used in this paper controls for unobserved heterogeneity, as pointed out in a recent paper by Fusco and Islam (2012). The fact that I use pairs of consecutive waves of data means I cannot fully exploit the time dimension of the panel and the modelling framework cannot determine the nature and direction of any potential feedback effects.…”

Section: Poverty Dynamics Among Older Individuals In the Uk 513mentioning

confidence: 99%

“…This figure is in line with previous research estimating poverty dynamics using a first-order Markov framework applied to longitudinal household panel data; Cappellari and Jenkins (2004) estimate ASD of 0.526 based on a sample of British individuals aged between 25 and 59, Buddelmeyer and Verick (2008) estimate ASD of 0.57 based on their sample of Australian individuals aged between 25 and 55. More recently Fusco and Islam (2012) compute an estimate of ASD of 0.65 using the Luxembourgish component of the EU-SILC. The reason the estimate of ASD is higher in this study relative to previous studies using longitudinal British data is due to the fact that these studies focus on working age poverty dynamics, whereas it has been shown that pensioners have higher persistent poverty rates relative to the working age population Cappellari and Jenkins, 2004;DWP, 2015).…”

Section: Conditional Poverty Statusmentioning

confidence: 99%

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In or out? Poverty dynamics among older individuals in the UK

Kanabar¹

2016

Journal of Pension Economics and Finance

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Using the largest household panel survey Understanding Society, this paper investigates lowincome dynamics among pensioner households in the UK controlling for biases due to initial conditions and non-random survey attrition. Estimation results indicate there is a correlation between initial and conditional poverty status, specifically, there is regression towards the mean. The results find no evidence of a correlation between initial poverty status, conditional poverty status and survey attrition. The findings show the importance of benefit income in determining poverty status, suggesting that a dichotomous measure such as poverty status may not suitably reflect actual pensioner living standards. Aside from benefit income, receipt of employer and occupational pension, health, education and subjective financial situation are important in determining initial and conditional poverty status. Stylised examples highlight the significant differences in the 'poverty experience' which arise due to differences individual and household characteristics.JEL CODES: D31, J26

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Section: Modelling Individual-level Transitionsmentioning

confidence: 99%

Section: Poverty Dynamics Among Older Individuals In the Uk 513mentioning

confidence: 99%

Section: Conditional Poverty Statusmentioning

confidence: 99%

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In or out? Poverty dynamics among older individuals in the UK

Kanabar¹

2016

Journal of Pension Economics and Finance

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“…Our empirical illustration based on Luxembourg data also allows us to analyse the determinants of the dynamics of perceived financial difficulties in this high income country-which has not been done before. Finally, the paper also aims at assessing the extent of the complementarity between the income-based and the perceptions based approaches of poverty by providing a comparison with the results obtained by Fusco and Islam (2012) who applied a similar methodology to low income transitions.…”

Section: Introductionmentioning

confidence: 98%

“…Luxembourg displays a level of relative income poverty that is slightly below the EU27 average and a low level of material deprivation by international standards (Fusco et al 2010(Fusco et al , 2014. From a longitudinal perspective, Fusco and Islam (2012) analysed the drivers of low income transitions in Luxembourg. Their main results show that there is a high proportion of genuine state dependence in low income and that employment protects from both remaining in low income and entering poverty.…”

Section: Introductionmentioning

confidence: 99%

The Dynamics of Perceived Financial Difficulties

Fusco

2015

J Happiness Stud

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The perceptions of individuals regarding their own economic situation are sometimes used to measure individuals' welfare or standard of living, thereby complementing the conventional income-based approach. While the importance of using longitudinal data when analysing the determinants of perceptions has recently been emphasized, the question of state dependence-the extent to which the past affects the present-has rarely been accounted for in the subjective economic well-being literature. The main contribution of the current paper is precisely to investigate the issue of state dependence in perceived financial difficulties. The application of an endogenous switching Markov model to data from the Luxembourg socioeconomic panel 'Liewen zu Lëtzebuerg' for the period 2003-2009 leads to the conclusion that there is a sizeable proportion of genuine state dependence, which confirms the importance of appropriately taking into account dynamic issues when modelling subjective variables.

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Material Deprivation

Ivaldi¹,

Ciacci²

2021

Wiley StatsRef: Statistics Reference Online

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One of the best‐known definitions of “material deprivation” is provided by Townsend, according to which material deprivation refers to “a state of observable and demonstrable disadvantage in relation to the local community or the wider society or nation to which an individual, family or group belongs. The idea has come to be applied to conditions (that is, physical, environmental, and social status or circumstances) rather than resources and to specific and not only general circumstances, and therefore can be distinguished from the concept of poverty. The former sure enough can't be context free; it applies to specific circumstances and physical, environmental, and social conditions. Material deprivation is a complex phenomenon, as it concerns multiple aspects of reality and can be measured in different ways. In this paper, our aim is to highlight the most important elements of deprivation, as well as the analytical assumptions (often underlying and overlooked) that constitute the cornerstone of his study.

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Chapter 14 Understanding the Drivers of Low-Income Transitions in Luxembourg

Cited by 12 publications

References 20 publications

In or out? Poverty dynamics among older individuals in the UK

In or out? Poverty dynamics among older individuals in the UK

The Dynamics of Perceived Financial Difficulties

Material Deprivation

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