TY  - RPRT
        AU  - Cappellari, Lorenzo
AU  - Jenkins, Stephen P.
        TI  - Modelling Low Income Transitions
        PY  - 2002/May/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 504
        UR  - https://www.iza.org/index.php/publications/dp504
        AB  - We examine the determinants of low income transitions using first-order Markov models that
control for initial conditions effects (those found to be poor in the base year may be a nonrandom
sample) and for attrition (panel retention may also be non-random). Our econometric
model is a form of endogeneous switching regression, and is fitted using simulated maximum
likelihood methods. The estimates, derived from British panel data for the 1990s, indicate that
there is substantial genuine state dependence in poverty. We also provide estimates of low
income transition rates and lengths of poverty and non-poverty spells for persons of different
types.
        KW  - state dependence
KW  - simulated maximum likelihood
KW  - first-order Markov
KW  - poverty dynamics
        ER  -