This study analyzes empirically the poverty dynamics and the poverty duration of the working poor. For the purpose of the analysis, the study composed the 10 quarters panel data of urban worker households, with the reference to the Household Income an...
This study analyzes empirically the poverty dynamics and the poverty duration of the working poor. For the purpose of the analysis, the study composed the 10 quarters panel data of urban worker households, with the reference to the Household Income and Expenditure Survey from the first quarter of 1998(just after the economic crisis) to the second quarter of 2000(just before the Minimum Standard Living Guarantee System).
From the results of analysis, this study draws the following implications: First, the poverty dynamics index, which was about 5~ 6% at the economic crisis, went down to 3~4% after the second quarter of 1999. This shows that the poverty dynamics became stable in the process of overcoming the economic crisis. Second, Two-thirds of households, which once had experienced poverty, stayed in poverty transiently for only one quarter. On the other hand, only about 10 percent of households have stayed in poverty for more than four quarters. Third, the longer the poverty duration is, the lower the probability of escaping from poverty. This means if low-income families failed to escape from poverty in its early stage, it would be increasingly difficult for them to get out of poverty. Lastly, the characteristics of the short-term poor households are similar to those of the non-poor households in many respects.