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Abstract for:

Why rising tides don't lift all boats? An explanation of the relationship between poverty and unemployment in Britain

Simon Burgess,  Karen Gardiner,  Carol Propper,  February 2001
Paper No' CASE 046: Full paper (pdf)
Tags: employment and income; employment and the labour market; tax, benefits and pensions; taxation and economic policy; poverty, exclusion and equalities; poverty and social exclusion; poverty; unemployment; economic cycle


Abstract: This paper is motivated by the lack of any obvious relationship between aggregate poverty and unemployment in Great Britain. We derive a framework based on individuals' risks of unemployment and poverty, and how these vary over the economic cycle. Analysing the British Household Panel Survey for 1991-96, we are able to square the micro evidence - that unemployment matters for poverty - with the macro picture - that there's no strong link. We then go on to identify which household and individual characteristics are associated with whether an individual's poverty risk is vulnerable to the economic cycle.