Income Mobility and Financial Disadvantage: Australian Children

Abello, Annie; Harding, Ann

doi:10.22459/ag.13.01.2006.03

Cited by 5 publications

(5 citation statements)

References 13 publications

(9 reference statements)

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“…46 Yet Table 5 indicates that even among the aged, the 3-year poverty rate of 10.1 per cent is well 42 A notable exception is the June 2004 issue of The Australian Journal of Labour Economics, which is devoted to papers that analyse the first wave of HILDA data. Abello and Harding (2006) also present estimates of child poverty dynamics using data from the Survey of Employment and Unemployment Patterns (SEUP) (ABS, 1998). 43 The issue of sample attrition in HILDA is discussed by Watson and Wooden (2004), while the implications for weighting are examined by Watson (2004).…”

Section: The Dynamics Of Povertymentioning

confidence: 99%

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Monitoring Trends in Poverty and Income Distribution: Data, Methodology and Measurement

Saunders

Bradbury

2006

Economic Record

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Australian research on poverty and income distribution has been subject to criticism over definitional, data quality and measurement issues that have undermined its validity and impact. In reviewing these issues, this paper addresses some of the problems that have been identified in the literature and illustrates their importance with examples that shed light on the validity of the arguments. It also seeks to establish whether poverty has increased or decreased in the decade to 2002–03 and examines the overlap between hardship or deprivation and income poverty, and reviews some of the emerging evidence on the dynamics of low income. After a detailed review of data problems, the significance of definitional issues is illustrated in relation to the measurement of income inequality and poverty. Attention then focuses on assessing the sensitivity of estimated trends in income poverty to how poverty is defined and measured. Although there is variation across the different measures, the evidence suggests that progress in reducing relative poverty has been slow. Our preferred measure (based on current income) suggests that relative poverty increased slightly over the decade, with most of the increase occurring between 1995–96 and 1999–2000. When poverty is measured in ‘absolute’ terms using a poverty line that is held constant in real terms, the poverty rate declined overall, but was more or less constant between 1996–97 and 2000–01. Estimates derived from wave III of Household Income and Labour Dynamics in Australia (HILDA) data indicate that those who were income poor in 2002–03 experienced twice as many hardship conditions as those who were not poor, with around one‐quarter of the poor having problems paying bills or seeking external financial assistance. HILDA data also indicate that many of those who are in poverty in any single year manage to escape within the next 2 years, although it is too early to know whether they escape permanently, or slip back into poverty or oscillate on its margins.

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Section: The Dynamics Of Povertymentioning

confidence: 99%

“…42 42 A notable exception is the June 2004 issue of The Australian Journal of Labour Economics , which is devoted to papers that analyse the first wave of HILDA data. Abello and Harding (2006) also present estimates of child poverty dynamics using data from the Survey of Employment and Unemployment Patterns (SEUP) (ABS, 1998). …”

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confidence: 99%

Monitoring Trends in Poverty and Income Distribution: Data, Methodology and Measurement

Saunders

Bradbury

2006

Economic Record

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“…Saunders and Bradbury (2006) investigate income poverty and mobility using ABS datasets, and stress that these data sources pose serious measurement challenges, which in turn distort estimates of income poverty. In another recent study, Abello and Harding (2006) analyse the dynamics of child poverty in Australia using ABS’ Survey of Employment and Unemployment Patterns (SEUP) over a 3‐year period (1995–1997). This study on child poverty finds that although there is considerable income mobility, the transitions are not substantial, and in fact there is less mobility than in other OECD countries.…”

Section: Introductionmentioning

confidence: 99%

Understanding the Drivers of Poverty Dynamics in Australian Households*

Buddelmeyer

Verick

2008

Economic Record

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Understanding the Drivers of Poverty Dynamics in Australian HouseholdsHielke Buddelmeyer Sher Verick The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. The results reveal that a range of household head, partner and demographic characteristics in addition to life-changing events have an impact on both the likelihood of remaining poor and slipping into poverty. These findings have important implications for Australian policymakers: tertiary education and employment are key factors in keeping households out of poverty; having a disability increases the probability of becoming poor and remaining in such a situation; households in outer-regional or remote areas are more likely to become poor and continue to live under such hardship; and finally, life-changing events, especially becoming separated, can lead households into persistent poverty. These results are robust to a range of poverty definitions. By drawing on research that utilizes such longitudinal data, policymakers will be much better informed about the drivers of material deprivation in Australia and subsequently how best to design policies that target and support the most vulnerable households.JEL Classification: D31, I32, C23, C35

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“…authors like Saunders (2007), Daly and Leonard (2002), Whiteford and Adema (2007), Abello and Harding (2006) have proved the inconsistent and insufficient provision of basic needs like providing personal clothes, parent inability to arrange separate beds for children, school books and school stipend with the family structure pushing for employment within the family occupation due to poverty had higher probability of social exclusion. In addition, poverty amongst children due to parent's joblessness, single parent or single earner families had been witnessed as the major suffering of intermittent poverty which badly damages the creativity of children while exposing them to social exclusion (Wooden and Headey 2005).…”

Section: Discussionmentioning

confidence: 99%