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Abstract for:

The relationship between EU indicators of persistent and current poverty

Stephen P Jenkins,  Philippe  Van Kerm,  March 2013
Paper No' CASE/169: Full paper (pdf)
Tags: employment and income; income inequalities; wealth and social mobility; wealth and assets; poverty, exclusion and equalities; poverty and social exclusion; persistent poverty; income poverty; poverty; eu-silc; europe

Abstract:

The current poverty rate and the persistent poverty rate are both included in the EUís portfolio of primary indicators of social inclusion. We show that there is a near-linear relationship between these two indicators across EU countries drawing on empirical analysis of EU-SILC and ECHP data. Using a prototypical model of poverty dynamics, we explain how the near-linear relationship arises and show how the model can be used to predict persistent poverty rates from current poverty information. In the light of the results, we discuss whether the EUís persistent poverty measure and the design of EU-SILC longitudinal data collection require modification.