Brewer, Mike and Etheridge, Ben and O'Dea, Cormac (2017) Why are households that report the lowest incomes so well-off. The Economic Journal, 127 (605). F24-F49. DOI https://doi.org/10.1111/ecoj.12334
Brewer, Mike and Etheridge, Ben and O'Dea, Cormac (2017) Why are households that report the lowest incomes so well-off. The Economic Journal, 127 (605). F24-F49. DOI https://doi.org/10.1111/ecoj.12334
Brewer, Mike and Etheridge, Ben and O'Dea, Cormac (2017) Why are households that report the lowest incomes so well-off. The Economic Journal, 127 (605). F24-F49. DOI https://doi.org/10.1111/ecoj.12334
Abstract
We document that households in the UK with extremely low measured income tend to spend much more than those with merely moderately low income. This phenomenon is evident throughout three decades worth of microdata and across different employment states, levels of education and marital statuses. Of the likely explanations, we provide several arguments that discount over-reporting of expenditure and argue that under-reporting of income plays the major role. In particular, by using a dynamic model of consumption and saving, and paying special attention to poverty dynamics, we show that consumption smoothing cannot explain all the apparent dissaving.
Item Type: | Article |
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Uncontrolled Keywords: | Consumption; Measuring living standards; Poverty |
Subjects: | H Social Sciences > HB Economic Theory |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of Faculty of Social Sciences > Institute for Social and Economic Research |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 14 Sep 2015 14:01 |
Last Modified: | 23 Sep 2022 19:18 |
URI: | http://repository.essex.ac.uk/id/eprint/14894 |
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