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Transition Events in the Dynamics of Poverty

Publication Date
Aug 31, 2002

This project addressed transition events associated with people entering and exiting poverty using data from the Survey of Income and Program Participation (SIPP) and the Panel Study of Income Dynamics (PSID). The study found that poverty entries and exits changed over the past two decades, with an increase in both poverty entries and exits (i.e., "cycling") in the mid 1990s. Descriptive analysis shows that individuals who experience a shift in household structure (i.e., from a two-parent to a single female household, or vice versa) are the most likely to enter or exit poverty; however, when controlling for important demographic and economic factors, the likelihood of entering or exiting poverty is highest for individuals experiencing employment shifts.