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


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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