Transition Events in the Dynamics of Poverty. Events Hypothesized to Affect Poverty

09/01/2002

The conceptual model identifies the types of events that might be associated with entries into and exits from poverty:

  • Changes in family composition
    • the birth of a child—through its negative effect on wage labor hours and its effect on family size,
    • a change in marital status—through its effect on wage labor hours,
    • a young adult sets up her/his own family—through the effect of age and family composition on wage labor hours and wages;
  • Change in employment status—through its effect on earnings;
  • Changes in disability or health status—through their effect on wages or wage labor hours;
  • Changes in educational attainment—through their effect on the wage;
  • Changes in government policies—through their effect on earned income, unearned income, and family size; and
  • Changes in economic status—through their effect on the hours family members can choose to work (e.g., job loss) and wages

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