Why Rising Tides Dont Lift All Boats? An Explanation of the Relationship between Poverty and Unemployment in Britain

49 Pages Posted: 14 Jul 2008

See all articles by Karen Gardiner

Karen Gardiner

affiliation not provided to SSRN

Carol Propper

Imperial College London Business School; Centre for Economic Policy Research (CEPR); University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO)

Date Written: February 2001

Abstract

Abstract: This paper is motivated by the lack of any obvious relationship between aggregate poverty and unemployment in Great Britain. We derive a framework based on individuals' risks of unemployment and poverty, and how these vary over the economic cycle. Analysing the British Household Panel Survey for 1991-96, we are able to square the micro evidence - that unemployment matters for poverty - with the macro picture - that there's no strong link. We then go on to identify which household and individual characteristics are associated with whether an individual's poverty risk is vulnerable to the economic cycle.

Suggested Citation

Gardiner, Karen and Propper, Carol, Why Rising Tides Dont Lift All Boats? An Explanation of the Relationship between Poverty and Unemployment in Britain (February 2001). LSE STICERD Research Paper No. CASE046, Available at SSRN: https://ssrn.com/abstract=1158937

Karen Gardiner

affiliation not provided to SSRN

Carol Propper

Imperial College London Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO) ( email )

12 Priory Road
Bristol BS8 1TN
United Kingdom

HOME PAGE: http://www.bris.ac.uk/Depts/Economics/department/profiles/propper.htm

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