DP1362 Poverty Dynamics Among Young Americans
|Author(s):||Simon Burgess, Carol Propper|
|Publication Date:||March 1996|
|Keyword(s):||Persistent Poverty, Poverty Dynamics|
|Programme Areas:||Human Resources|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=1362|
This paper characterizes the nature of poverty from a dynamic life-cycle perspective. Using panel data from the National Longitudinal Survey of Youth, we find that 40% of young Americans experienced at least one year of poverty, and most of these experienced one or two years. A significant group, by age 34, had suffered five or more years of poverty out of thirteen. The overall poverty rate of 12.9% for this sample averages these different life-cycle paths. We investigate poverty transition rates and find an average annual outflow rate of 40% and an inflow rate of 6%.