The Dynamics of Child Poverty: Britain and Germany Compared

Abstract

We compare patterns of movements into and out of poverty by children in Britain and Germany using data from the British Household Panel Survey and the German Socio- Economic Panel for the period 1992-7. Compared to Germany, in Britain poverty persistence is greater, and poverty exit rates in particular are lower. In both countries poverty is particularly persistent among children in lone parent households and households with a nonworking head. Events such as family formation and dissolution, and changes in household labour market attachment are associated with child poverty transitions in the direction expected, and in both countries. However a large fraction of the observed poverty transitions are not accounted for by these events.