Combining the dynamics of Poverty and Deprivation

Abstract

This article analyses the evolution of poverty and deprivation. The study is focused on consistent poverty, defined as the combination of income and living conditions. In the literature, other papers on poverty show high exit and re-entry rates depending on temporary income shocks. These conclusions are tested in the case of deprivation and consistent poverty by using latent and mixed Markov models. This study is based on the European Community Household Panel (ECHP) data for Spain (1994-2001).