25 February 2018

The Conversation: New evidence suggests we may need to rethink policies aimed at poverty

But less than 15% of the most disadvantaged people in Australia exit poverty from one year to the next, according to data from the Journeys Home survey, run by the Melbourne Institute. [...]

However, our research suggests that income poverty is persistent for a small group of Australians and is combined with other forms of disadvantage. Supporting these people in finding a pathway out of poverty requires deeper interventions, including targeted health, education and social policies.

Most of the evidence we have on the persistence of poverty is based on long-term surveys designed to be representative of the entire population. Although these surveys offer broad coverage of the population, such surveys are typically limited in their ability to capture the most disadvantaged groups because they constitute only a small part of the general population. [...]

The HILDA results show that most Australians who fall below the poverty line do so for a relatively short time, which is good news. However, it is also clear that among chronically disadvantaged people the chances of poverty becoming an enduring feature of life are much higher than previously thought.

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