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Modelling poverty by not modelling poverty: an application of a simultaneous hazards approach to the UK

Aassve, Arnstein, Burgess, Simon, Dickson, Matt and Propper, Carol (2006) Modelling poverty by not modelling poverty: an application of a simultaneous hazards approach to the UK. CASEpaper, CASE/106. Centre for Analysis of Social Exclusion, London School of Economics and Political Science, London, UK.

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Abstract

We pursue an economic approach to analysing poverty. This requires a focus on the variables that individuals can influence, such as forming or dissolving a union or having children. We argue that this indirect approach to modelling poverty is the right way to bring economic tools to bear on the issue. In our implementation of this approach, we focus on endogenous demographic and employment transitions as the driving forces behind changes in poverty. We construct a dataset covering event histories over a long window and estimate five simultaneous hazards with unrestricted correlated heterogeneity. The model fits the demographic and poverty data reasonably well. We investigate the important parameters and processes for differences in individuals’ poverty likelihood. Employment, and particularly employment of disadvantaged women with children, is important.

Item Type: Monograph (Discussion Paper)
Official URL: http://sticerd.lse.ac.uk/case
Additional Information: © 2006 Arnstein Aassve, Simon Burgess, Matt Dickson and Carol Propper
Library of Congress subject classification: H Social Sciences > HV Social pathology. Social and public welfare. Criminology
Journal of Economic Literature Classification System: I - Health, Education, and Welfare > I3 - Welfare and Poverty > I32 - Measurement and Analysis of Poverty
Sets: Collections > Economists Online
Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Research centres and groups > Centre for Analysis of Social Exclusion (CASE)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: CASE/106
Date Deposited: 01 Jul 2008 10:01
URL: http://eprints.lse.ac.uk/6243/

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