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On the non-stationarity of German income mobility (and some observations on poverty dynamics)

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The intra-distributional mobility of German income dynamics is analysed using GSOEP. Transition probabilities are found to be time-varying. The tested models comprise various mixed Markov chains in discrete time and a non-stationary mover-stayer model is proposed. In order to explain the observed mobility profiles, we concentrate on one important income class - the poor - instead of the entire transition matrix. Various poverty duration models accommodating unobserved population heterogeneity and duration dependence are examined.

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en

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application/pdf

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http://eprints.lse.ac.uk/6599/1/On_the_Non-Stationarity_of_German_Income_Mobility_%28and_some_observations_on_poverty_dynamics%29.pdf

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