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Income Dynamics, Pro‐Poor Mobility and Poverty Persistence Curves
Author(s) -
Creedy John,
Gemmell Norman
Publication year - 2018
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/1475-4932.12426
Subject(s) - persistence (discontinuity) , poverty , economics , econometrics , dynamics (music) , demographic economics , economic mobility , revenue , economic growth , sociology , pedagogy , geotechnical engineering , engineering , accounting
This paper explores poverty income dynamics in the form of income mobility by the poor and poverty persistence, making use of simple diagrams. It seeks to illustrate the extent to which income mobility is pro‐poor and when mobility is associated with persistence below, or movement across, a poverty line over a specified time period. While statistical measures can be used to examine detailed characteristics of income dynamics, two simple diagrams are shown to capture the extent of pro‐poor mobility and poverty persistence respectively in ways that allow convenient comparisons. These are referred to as a ‘three Is of mobility’ curve, and a ‘poverty persistence curve’, The curves are illustrated using anonymised Inland Revenue longitudinal individual income data for New Zealand over 2006–2010.