Measuring the effect of spell recurrence on poverty dynamics
ISSN: 1578-0252
Year of publication: 2008
Issue: 5
Pages: 3-68
Type: Article
More publications in: Papeles de trabajo del Instituto de Estudios Fiscales. Serie economía
Abstract
The analysis of poverty dynamics yields important insights about the expected effectiveness of alternative social policies on poverty reduction. This paper analyses the effect of spell recurrence on poverty dynamics taking into account multiple poverty and non-poverty spells by spell order. Using data for Spain during a seven year period, we obtain that the poverty exit and re-entry rates vary not only with personal or household characteristics but also with spell accumulation and with the duration of past spells. Results indicate that the effect of duration dependence is significant and turns out to be different by spell order.