Understanding the drivers of poverty dynamics in Australian households

Abstract

This paper contributes to the growing literature on poverty dynamics in Australian households. The results reveal that a range of life-changing events, household head, partner and demographic characteristics have an impact on both the likelihood of remaining poor and slipping into poverty. These findings have important implications for Australian policymakers: tertiary education and employment are key factors in keeping households out of poverty; having a disability or living in outerregional or remote areas increases the probability of becoming poor and remaining in such a situation; and finally, life-changing events, especially becoming separated, can lead households into persistent poverty. © 2008 The Economic Society of Australia.