Neoclassical economic theory rules out systematic errors in consumptionchoice. According to the basic view, individuals know what they choose. They areable to predict how much utility an activity or a good produces for them now and inthe future and they can maximize their utility. This implies...

In this paper we examine the concept of "vulnerability" (Townsend 1994) within thecontext of income mobility of the poor. We test for the dynamics of vulnerablehouseholds in the UK using Waves 1 - 12 of the British Household Panel Survey andfind that, of three different types of risks that we...

This paper explores the links between school, family and areabackground influences during adolescence and later adult economicoutcomes. The empirical analysis is based on data covering the period1979 to 1996, drawn from the 1979 US National Longitudinal Survey ofYouth. For a sample of...

This paper is motivated by the lack of any obvious relationship betweenaggregate poverty and unemployment in Great Britain. We derive aframework based on individuals’ risks of unemployment and poverty,and how these vary over the economic cycle. Analysing the BritishHousehold Panel Survey for...

This paper examines whether and how socio-economic status is associated withchildren’s behavioural development in today’s children. Using a large cohort ofEnglish children born in the early 1990s we find significant social inequalities inseveral dimensions of child behaviour at age 7. We...

We pursue an economic approach to analysing poverty. This requires a focus onthe variables that individuals can influence, such as forming or dissolving aunion or having children. We argue that this indirect approach to modellingpoverty is the right way to bring economic tools to bear on the...

Parental involvement in their children’s lives can have a lasting impact on wellbeing.More involved parents convey to their children that they are interested intheir development, and this in turn signals to the child that their future is valued.However, what happens in socio-economically...

This paper argues that our understanding of income and poverty dynamicsbenefits from taking a life cycle perspective. A person’s age and familycircumstances – the factors that shape their life cycle – affect the likelihood ofexperiencing key life events, such as partnership formation,...

Equivalisation of incomes for household size and composition is acceptedpractice when measuring poverty and inequality; adjustments to take account ofother variations in needs are rarely made. This paper explores the financialimplications of one possible source of additional needs: disability....