Determinants of Poverty Dynamics in Chile and the Role of Temporal Persistence: Analysis of Casen Panel Survey 2006-2009 with Events History Methods

Abstract

This article evaluates poverty dynamics in Chile by using events history techniques for poverty exit and re-entry rates with data from the survey Panel of Socioeconomic Characterization for the years 2006, 2007, 2008 and 2009. The findings indicate a significant mobility in and out of poverty. More than one third of the persons lived in poverty at least one year during the period under study. The poverty dynamics in Chile is also characterized by temporal persistence and the importance of socio-demographic structure of households and their attachments in the labor market for exits and reentries into deprivation. These results suggest the relevance of public programs that smooth poverty entries and support labor ways associated with poverty exits.