Poverty and its persistence: a comparison of natives and immigrants in Sweden |
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Authors: | Jorgen Hansen Roger Wahlberg |
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Institution: | (1) Department of Economics, CIREQ, CIRANO, and IZA, Concordia University, 1455, de Maisonneuve Blvd W., Montreal, QC, H3G 1M8, Canada;(2) Department of Economics, IZA, University of Gothenburg, P.O. Box 640, 40530 Gothenburg, Sweden |
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Abstract: | This paper analyzes poverty and its persistence in Sweden using a large panel with detailed income information obtained from
tax registers. As opposed to many commonly used household panels, the features of the data utilized in this paper allow us
to study native-immigrant differences in poverty. We use a hazard rate model based on multiple spells that accounts for unobserved
heterogeneity and endogenous initial conditions. The empirical results suggest that there is negative duration dependence
in both exit and entry hazard rates. Moreover, the transition rates are significantly affected by immigrant status, educational
attainment, labor market conditions, age, and family status.
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Keywords: | Poverty persistence Duration dependence Multiple spells Unobserved heterogeneity Natives Immigrants |
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