According to Family Expenditure Survey (FES) data, child poverty (with a poverty line defined at half mean equivalised household income) has risen markedly in Britain in the last 30 years. By 1995-96, around one in three - or 4.3 million - children were living in poor households. This compares...

It is common to analyse poverty data broken down by household or economic status. Implicitly, it is assumed that people change state (for example, single, married, children, no children) for exogenous reasons. If we bring economic behaviour into the problem, then such transitions become...