There is an ambiguity in Amartya Sen's capability approach as to what constitutes an individual's resources, conversion factors and valuable functionings. What we here call the "circularity problem" points to the fact that all three concepts seem to be mutually endogenous and interdependent. To econometrically account for this…

This paper analyses the situation when employees fail to adapt to overall job dissatisfaction. By combining the existing knowledge in economics on job lock and in psychology on employees' feeling of being "stuck" at work, the paper explains why some employees fail to adapt when dissatisfied with their job. Thus, the paper aims to expand…

This paper addresses a key methodological challenge in the modeling of individual poverty dynamics--the influence of measurement error. Taking the US and Britain as case studies and building on recent research that uses latent Markov models to reduce bias, we examine how measurement error can affect a range of important poverty estimates. Our data…