Table 4 Summary of decomposition framework and indicators of interest
From: Intergenerational persistence of poverty in five high-income countries
Component | Parameter | Description |
|---|---|---|
IGPov | β1 | The association of childhood poverty with adult poverty, equivalent to the sum of F, M, T and R |
Family background (F) | ρ1 − δ1 | The influence of the following indicators on IGPov: share of childhood in home with no [woman/man] present; share of childhood in single-parent home; age of mother at birth; mean maternal employment rate during childhood; highest educational attainment of mother; and average number of children in home during childhood |
Mediating benchmarks (M) | δ1 − γ1 | The influence of the following indicators, observed in young adulthood, on IGPov, conditional on F: has high school degree; has more than high school degree; is employed; is employed and works more than 30 h per week; is a single parent with children present at home; is married; is married and spouse has more than a high school degree; and has another person in the home who is employed (at some point in adulthood) |
Tax and transfer insurance (T) | (β1 − ρ1) − (θ1 − γ1) | The effect of taxes and transfers on insuring against observable family background characteristics and benchmark attainment |
Residual (R) | θ1 | The persistent association of childhood poverty with adult poverty that is not channelled through F or M and is not offset by T |
