WHY ARE CHILD POVERTY RATES SO PERSISTENTLY HIGH IN SPAIN?

Authors

  • CARLOS GRADÍN,

    1. Universidade de Vigo
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  • OLGA CANTÓ

    1. Instituto de Estudios Fiscales and Universidade de Vigo
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    • The authors would like to thank participants in the Low Pay, Low Skill, and Low Income (LOPSI) Workshop held in Milan for their comments. We also acknowledge financial support from the Spanish Ministerio de Educación y Ciencia (grant ECO2010-21668-C03-03/ECON).


  • Manuscript received 23.12.09; final version received 19.10.10.

Abstract

Poverty rates among households with children in Spain have been shown to be persistently higher than those among households without children. These higher rates prevail for chronic, transitory and, most remarkably, for recurrent poverty. In order to study the dynamics of poverty transitions in this country we estimate a dynamic random effects probit model that controls for unobserved heterogeneity and initial conditions using the panel data information from the European Community Household Panel. Our results show differential effects of several individual and household characteristics on the probability of being poor for households with and without children. Of special interest is how labour instability factors can help in explaining the outstandingly higher recurrence in poverty among households with children observed in Spain in comparison with other countries.

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