Transition Events in the Dynamics of Poverty. Chapter IV: Empirical Methods

09/01/2002

This section describes the methods used to analyze our three research questions: (1) What are the dynamics behind changes in the poverty rate over time? (2) What events increase individuals' likelihood of entering and exiting poverty? and (3) What is the likelihood of entering and exiting poverty given these different events? We answer the first research question using the count method and answer the second and third research questions using the multivariate hazard method. While some researchers have used the count method to examine the relationship between events and transitions, using this descriptive approach is problematic because individuals can experience more than one event at a time, thereby making it impossible to identify the relative importance of the different events in the individuals' transitions.

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