Income distribution and duration of poverty-level employment

Abstract

In this chapter we use microdata to examine employment duration for families receiving benefits from a distribution income. To achieve this goal, Cox proportional hazard models were used to estimate the job duration for program beneficiaries and non-beneficiaries, using a database of more than three million people. Our findings suggest that the risk of leaving work among beneficiaries of this program is 7-10% lower than the risk for non-beneficiaries. Parametric models were also adjusted to verify robustness, producing results equivalent to those of the Cox model. In all cases, program participation was observed through a covariate that varies over time, extracted directly from the program's payment records. These results are relevant for the definition of public policies regarding the risk of the income level of poor families, as well as for the financial industry, as it offers relevant empirical evidence for the design of new financial products.