A Multiple-Process Latent Transition Model of Poverty and Health

Health researchers often use the life-course perspective, exploring how long-range experiences in one life domain may influence, and be influenced by, those in another. We develop a multiple-process latent transition model (MPLTM) to estimate changes in health and poverty dynamics simultaneously, using repeated measures of self-rated health and income for working-aged adults from the British Household Panel Survey. We apply the model to quantify concurrent and longitudinal effects to assess whether changes in these two processes are related or independent. Model extensions add time-invariant (cohort, gender) and time-varying (weeks nonemployed in previous year) covariates. We find both concurrent and bidirectional longitudinal relationships between poverty and health, with nonemployment appearing to mediate longitudinal health-to-poverty effects and confound longitudinal poverty-to-health effects. The MPLTM can provide quantitative estimates of complex interlocking processes that are often difficult to measure and assess.