2005
DOI: 10.1111/j.0038-4941.2005.00340.x
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Events that Trigger Poverty Entries and Exits*

Abstract: Objective. This article examines how events-such as changes in household composition, employment status, disability status, and economic conditions-affect poverty entries and exits. We also examine whether the role these events play in poverty transitions differs in the pre-and post-welfare-reform periods. Methods. The analysis uses discrete-time multivariate hazard models along with monthly, longitudinal data from the 1988, 1990, and 1996 panels of the Survey of Income and Program Participation (SIPP). Result… Show more

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Cited by 96 publications
(89 citation statements)
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References 13 publications
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“…Indeed, the household income usually decreases around childbirth. The baby often becomes an additional financial burden that may not be adequately compensated for by family-related benefits (Fouarge and Layte, 2005;Layte and Whelan, 2003;McKernan and Ratcliffe, 2005). The greatest reduction in household income occurs in the period between birth and the age of 4: a critical period for child development, as well as for parental career development (OECD, 2011).…”
Section: Labour Market Restructuring and Households' Employment Situamentioning
confidence: 99%
See 1 more Smart Citation
“…Indeed, the household income usually decreases around childbirth. The baby often becomes an additional financial burden that may not be adequately compensated for by family-related benefits (Fouarge and Layte, 2005;Layte and Whelan, 2003;McKernan and Ratcliffe, 2005). The greatest reduction in household income occurs in the period between birth and the age of 4: a critical period for child development, as well as for parental career development (OECD, 2011).…”
Section: Labour Market Restructuring and Households' Employment Situamentioning
confidence: 99%
“…Childbirth represents a poverty-triggering event because it destabilises both the household's level of need and the family/work balance (Callens and Croux, 2009;McKernan and Ratcliffe, 2005; Organisation for Economic Co-operation and Development (OECD), 2008; Vandecasteele, 2010). A rise in the number of children is generally linked to a decrease in a family's disposable income (Misra et al, 2007;Nolan et al, 2006;OECD, 2011a;Rigg and Sefton, 2006), although an income reduction does not necessarily lead to a transition to poverty (Layte and Whelan, 2003;OECD, 2008).…”
Section: Introductionmentioning
confidence: 99%
“…Analyses of poverty dynamics using SIPP data tend to use monthly, rather than wavely, data (e.g., Eller 1996, McKernan and Ratcliffe 2005, Naifeh 1998, Ruggles 1990). In addition, a recent analysis of seam bias in the SIPP suggests that using the monthly data with a seam month dummy is preferred to using wavely data (Ham, Li, and Shore-Sheppard 2007).…”
Section: Survey Of Income and Program Participationmentioning
confidence: 99%
“…Further complicating the task, a complete poverty theory would need to be based upon the family, while most theories are based upon individuals (Duncan 1984). But despite these challenges, a few researchers in the poverty dynamics literature have indeed attempted to model poverty dynamics, or at least certain aspects of poverty dynamics-among them, Duncan (1984), Iceland (1997b), Lillard and Willis (1978), McKernan and Ratcliffe (2005), and Ribar and Hamrick (2003). The most comprehensive model in this literature, developed by Burgess and Propper (1998), incorporates both household composition and labor market participation decisions in predicting patterns of poverty dynamics.…”
Section: Theoriesmentioning
confidence: 99%
“…Changes in household members' employment conditions and earning capacity indeed have been found to account for most of poverty transitions (Jarvis and Jenkins 1997;Muffels et al 2000;McKernan and Ratcliffe 2005). Furthermore, household changes in terms of size and the household head, and demographic events as new births, union formation or dissolution, new household formation are also likely to trigger poverty transitions ( Other research has been devoted to disentangle to what extent the persistence in poverty is determined by household members' characteristics (observed and unobserved), or to the previous experience of poverty itself.…”
Section: Previous Literaturementioning
confidence: 99%