The findings of the Panel Study of Income Dynamics (PSID) suggest that most poor people can expect to be permanently poor.

Question

Quizplus · Accepted Answer

The statement is false. The PSID found that while poverty persists, there is also significant mobility in and out of poverty over time. A study using PSID data found that over a 9-year period, 43% of households experienced at least one year of poverty, but over half of those households exited poverty within one year, and almost three-quarters had escaped poverty within three years.

The Findings of the Panel Study of Income Dynamics (PSID)