Download or read book Chronic vs Transient Poverty written by Anna Miller and published by GRIN Verlag. This book was released on 2013-05-13 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay from the year 2013 in the subject Economics - Finance, grade: 65%, University of Nottingham (Economics), course: MSc in Applied Economics and Financial Economics, language: English, abstract: Measuring poverty requires long time periods. Different from other macroeconomic variables like the GDP or the inflation rate of a country, which can be determined immediately and quite precisely at every point in time, it is not that straightforward to measure the level or degree of poverty. If we were to count all people below a certain poverty line at a particular time, we would know only half of the story behind those poor. Some one can fall below the poverty line in one period but climb above it in the next; on the other hand, some one can be persistently below the poverty line. Therefore it is not enough to take only one snapshot of the scenario but one has to take into account that people can be either chronically or transiently poor and that there is a lot of movement in and out of poverty. Commonly poverty is measured by looking at consumption of households rather than their incomes. The reason is that income in many cases is only difficult to capture precisely. A self-employed farmer may not have a monetary income but only his harvest, which can be only inaccurately translated into monthly incomes. However, his consumption of food is easy to determine and can also be properly reported. This aspect allows for tracking the households’ poverty level at their different states such that a farmer’s consumption before the harvesting season is most likely to be lower than after and thus his poverty level might change from below the poverty line to above it.This kind of household moves in and out of poverty depending on the season and therefore it is not enough to interview him only once. Figure 1 shows how income can develop over a time period of 5 units. Whereas individual 1’s income is persistently below the poverty line and it experiences permanent deprivation, individual 3 manages to escape poverty after the third period. On the other hand, individual 2’s income rises above the poverty line in period 2 but declines again after the third, which is the typical pattern of transient poverty. However, we do not know for sure what happened after the fifth and before the first period and therefore cannot draw unambiguous conclusions. Considering the fact that poverty has two faces, one should analyse the shares of people that are chronically and transiently poor, respectively. Not only is this a correct measure of poverty but it also provides crucial information for the policymakers.

Download or read book Determinants of Transient and Chronic Poverty written by Jyotsna Jalan and published by World Bank Publications. This book was released on 1998 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Metrics Matter written by Sara Kimberlin and published by . This book was released on 2013 with total page 306 pages. Available in PDF, EPUB and Kindle. Book excerpt: The way poverty is measured shapes the types of policy solutions perceived to be possible and appropriate to address poverty, as poverty measurement produces information about who is poor, how many people are poor, and why they are poor. The traditional approach to measuring poverty in the United States suffers from two serious shortcomings, which limit the usefulness of the data produced to inform poverty policy. First, the official federal poverty measure (OPM) traditionally used to determine who qualifies as poor is based on consumption data from the 1960s and does not reflect current living patterns or costs of basic needs. Second, poverty in the United States is typically measured on an annual basis, using a cross-sectional analysis approach, which fails to capture information about the duration of poverty, though short-term poverty and long-term poverty have been shown to have different demographics, and long-term poverty is associated with more severe impacts on life outcomes. This study addresses these two shortcomings, by using an alternative poverty measure recently developed by the U.S. Census Bureau and U.S. Bureau of Labor Statistics, the Supplemental Poverty Measure (SPM), in place of the OPM to determine who qualifies as poor, and by analyzing poverty from a longitudinal rather than cross-sectional perspective, examining chronic or long-term poverty and transient or short-term poverty as distinct phenomena. Prior research has examined poverty in the U.S. using alternative poverty measures including the SPM, but only from a cross-sectional perspective. Other research has examined U.S. poverty from a longitudinal perspective, but using the OPM or a closely derived poverty measure. This study thus fills a gap in the existing research on poverty in the United States, by measuring poverty longitudinally using the better-grounded Supplemental Poverty Measure. Data for this study were drawn from the Panel Study of Income Dynamics (PSID), a comprehensive nationally representative longitudinal dataset. Data included detailed household income, benefit, housing, and expense information used to construct annual poverty status using the SPM, as well as individual and household demographic variables, collected biennially from 1998 to 2008, thus representing six data years. Descriptive analysis was conducted using individuals as the unit of analysis (n= 8,375) while multivariate regression analysis was conducted using households as the unit of analysis (n=4,188). Complex survey weights were used in all analyses to adjust for differential sampling and attrition. Multiple imputation was used to impute missing values for one of the components used to construct SPM poverty status and for one of the demographic covariates. Chronic poverty was defined as poor under the SPM in more than half of the years examined (i.e. 4 or more of 6 years), while transient poverty was defined as poor under the SPM in at least one year but not more than half of the years (i.e. 1 to 3 of 6 years). Nonpoor was defined as not poor under the SPM in any year. Descriptive analysis was used to examine the prevalence and demographics of chronic and transient poverty, to compare the demographics of chronic and transient poverty using the Supplemental Poverty Measure versus using the official federal poverty measure, and to examine the impact of existing government benefits, private resources, and household expenses on chronic and transient poverty rates. Results showed that chronic poverty was a rare phenomenon, affecting only 2.1% of the sample or approximately 1 in 50 individuals, while transient poverty was fairly common, affecting 18.9% of the sample or approximately 1 in 20 individuals. The demographics of chronic and transient poverty were somewhat different, with groups that experienced high rates of transient poverty generally demonstrating even more disproportionately high rates of chronic poverty. Thus chronic poverty was more concentrated among particularly disadvantaged groups, while the population affected by transient poverty was still disadvantaged but more similar to the overall sample. The rates of chronic and transient poverty calculated using the SPM were statistically significantly different from the rates calculated using the official federal poverty measure, for both the overall sample and for many demographic subgroups. In general, chronic poverty rates were lower, and transient poverty rates were higher, when using the SPM versus using the OPM. Finally, government benefits were shown to have a substantial impact on both chronic and transient poverty rates, reducing the overall transient poverty rate from 23.9% to 18.9%, a difference of 5.0 percentage points, and reducing the overall chronic poverty rate from 10.8% to 2.1%, a reduction of 8.7 percentage points. One observed effect of government benefits was to increase household resources just enough to shift some individuals out of chronic poverty into transient poverty. The impact of government benefits on chronic and transient poverty rates was different for different demographic subgroups. Seniors experienced the greatest reduction in transient and especially chronic poverty rates, essentially due to Social Security, while children experienced less of a reduction. For immigrants, the dominant effect of government benefits was to shift individuals out of chronic into transient poverty. Multivariate regression, specifically multinomial logistic regression, was used to examine the predictors of transient and chronic poverty. Analysis specifically examined whether the predictors of each type of poverty, versus nonpoor status, corresponded to economic theory which posits that transient poverty is driven by temporary reductions in income (e.g. job layoff), while chronic poverty is driven by an inadequate long-term base of human and material assets needed to generate income (e.g. lack of education or presence of disability). Results showed that chronic poverty was significantly associated with asset limitations, including particularly non-high school graduate status, immigrant status, and long-term disability in a high housing cost area. Transient poverty was significantly associated with one variable linked to short-term income disruption, namely short-term unemployment. However, transient poverty was also significantly predicted by variables representing asset limitations, though most of these covariates had a stronger association with chronic poverty than transient poverty. The association of asset limitations with transient poverty appeared to be partly explained by the fact that government benefits shifted some asset-limited households, who would be expected to be chronically poor, out of chronic poverty and into transient poverty. Results of this study suggest implications for both research and policy. The finding that rates of chronic and transient poverty differ depending on whether the Supplemental Poverty Measure or official federal poverty measure is used suggests that researchers and policy analysts should consider using the SPM when analyzing longitudinal poverty, as the SPM has a stronger conceptual and empirical grounding than the OPM and did not simply function as a proxy for the OPM when examining poverty longitudinally in this study. Results related to the impact of government benefits on chronic and transient poverty rates suggest that policymakers should consider not just short-term policy impacts, but also the longitudinal impact of specific policies and of the overall package of government benefits on poverty. In addition, the differential impact of policies on chronic versus transient poverty, and on chronic and transient poverty among different demographic subgroups, should be considered. Findings related to the predictors of chronic versus transient poverty suggest that policies to address chronic poverty should target individuals with limited bases of human assets needed to generate income; such policies could function either through asset building or through long-term income supplementation or subsidies. Transient poverty could be addressed by enhancing short-term unemployment support, while policies targeted to asset-limited individuals would be likely to impact transient as well as chronic poverty. Further research to more clearly distinguish predictors of chronic poverty over and above transient poverty would be helpful for policy targeting purposes. Finally, prior research on the impact of chronic and transient poverty on life outcomes suggests that two types of poverty could be considered as priorities for policy interventions, due to greater impact on health and other outcomes, namely chronic poverty (as exposure to longer duration of poverty is associated with worse outcomes) and transient poverty occurring during the sensitive developmental period of childhood (as exposure to even short-term poverty during this sensitive period is associated with serious long-term health and developmental impacts). Results from this study show that addressing either of these two types of poverty could be feasible, if somewhat ambitious policy goals in terms of the number of individuals affected and the cumulative gap between their resources and needs.

Download or read book Determinants of Transient and Chronic Poverty written by Jyotsna Jalan and published by . This book was released on 2016 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: Both chronic and transient poverty are reduced by greater command over physical capital, and life-cycle effects for the two types of poverty are similar. But there the similarities end. Most policies aimed at reducing chronic poverty may have little or no effect on transient poverty. Are the determinants of chronic and transient poverty different? Do policies that reduce transient poverty also reduce chronic poverty?Jalan and Ravallion decompose measures of household poverty into chronic and transient components and use censored conditional quantile estimators to investigate the household and geographic determinants of both chronic and transient poverty, taking panel data for post-reform rural China. They find that a household's average wealth holding is an important determinant for both transient and chronic poverty. Although household demographics, levels of education, and the health status of members of the household are important for chronic poverty, they are not significant determinants of transient poverty.Both chronic and transient poverty are reduced by greater command over physical capital, and life-cycle effects for the two types of poverty are similar. But there the similarities end. Smaller and better-educated households have less chronic poverty, but household size and level of education matters little for transient poverty. Living in an area where health and education are better reduces chronic poverty but appears to be irrelevant to transient poverty. Nor are higher foodgrain yields a significant determinant of transient poverty, although they are highly significant in reducing chronic poverty.These findings suggest that China's poor-area development program may be appropriate for reducing chronic poverty but is unlikely to help reduce variations in consumption that households typically face in poor areas - the exposure to uninsured income risk that underlies transient poverty will probably persist. Other policy instruments may be needed to deal with transient poverty, including seasonal public works, credit schemes, buffer stocks, and insurance options for the poor.This paper - a product of Poverty and Human Resources, Development Research Group- is part of a larger effort in the group to reexamine the role of the informal sector.

Download or read book The Influence of Ill Health on Chronic and Transient Poverty written by David Lawson and published by . This book was released on 2004* with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Transient Proverty in Rural China written by Jyotsna Jalan and published by World Bank Publications. This book was released on 1996 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Poverty and Policy written by Michael Lipton and published by World Bank Publications. This book was released on 1993 with total page 126 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The concept of chronic poverty its value for poverty analysis and for pro poor policy making written by Cynthia Dittmar and published by GRIN Verlag. This book was released on 2009-07-20 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2008 in the subject Politics - Topic: Development Politics, grade: merit, University of Manchester (Institute for Development Policy and Management), course: Poverty and Livelihoods: Analysis, Policy and Action, language: English, abstract: Poverty reduction stands in the centre of the current development agenda of governments and aid agencies and is seen as an overarching aim of development intervention. There is a danger that those suffering the severest forms of poverty will not be reached by the recent poverty agenda. It gets increasingly obvious that even in countries that perform well in terms of poverty reduction, there remains significant numbers of people in deprivation which is a sign that certain forms of poverty are not addressed by the current development agenda (Green and Hulme, 2005). The concept ‘chronic poverty’ is an attempt to understand and address those forms of poverty. Chronically poor are defined as “people who remain poor for much of their life course, who may ‘pass on’ their poverty to their children, and who may die of easily prevent-able deaths because of the poverty they experience” (CPRC, 2004: 3) . Conservative estimates speak of 300 to 420 million chronically poor worldwide (ibid.). The following three sections attempt to answer the question of whether the concept of ‘chronic poverty’ adds value to current poverty analysis and development policy. Sec-tion 2 introduces the concept ‘chronic poverty’ and section 3 gives an overview about current poverty analysis and its critiques, with a focus on current approaches and un-derstandings of poverty which influence the current poverty reduction agenda. Section 4 presents the analysis of whether the concept adds value to poverty analysis and the implications this may have for pro-poor policy making. It will be argued that the concept of ‘chronic poverty’ has advantages on the conceptual level of poverty analysis and on the practical level of development policy and intervention. Those levels are highly interdependent: which measures are taken to fight poverty is dependant on how it is analysed and defined by academics, donors, societies and national decision makers. Therefore section four is divided into two parts: The first part will discuss the influences for conceptualising poverty and the second part will concentrate on practical implications for development policy and intervention. [..]

Download or read book Chronic Poverty written by A. Shepherd and published by Springer. This book was released on 2013-05-30 with total page 310 pages. Available in PDF, EPUB and Kindle. Book excerpt: Based on a decade of research by the Chronic Poverty Research Centre, this volume includes material on inter-generational transmission, the importance of assets and vulnerability, and conflict, and new thinking about the close relationship between social exclusion and adverse incorporation.

Download or read book Chronic and Transient Poverty written by Celia M. Reyes and published by . This book was released on 2010 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Poverty Dynamics in Developing Countries written by Shahin Yaqub and published by . This book was released on 2000 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Determinants and Consequences of Chronic and Transient Poverty in Nepal written by Saurav Dev Bhatta and published by . This book was released on 2006 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Causes of Chronic and Transient Poverty and Their Implications for Poverty Reduction Policy in Rural China written by Shi Li and published by . This book was released on 2018 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: The study focuses on two components of total poverty: chronic and transient poverty, and investigates their relative importance in total observed poverty, as well as the determinants of each component. We found that transient poverty accounts for a large proportion of total poverty observed in the poor rural areas of China. By analyzing the determinants of the two types of poverty, we found that household demographic characteristics, such as age of the head of households, family sizes, labour participation ratio, and educational level of the head of the households, are very important to the poverty status of households. These factors matter more to chronic poverty than transient poverty, and have greater impacts on the poverty measured by consumption than that measured by income. Besides the demographic factors of households, other household factors like physical stocks, the composition of income, and the amount of cultivated lands also have significant effects on both chronic and transient poverty. It is also confirmed that change in cash holding and saving and borrowing grain are used by rural households to cope with income variation and smooth their consumption. Attributes of community where the households reside are also important to poverty.With very few exceptions, we did not find that poverty programs have significant impact on poverty reduction at the households' level. We interpreted this as the poverty programs benefiting the wealthy more than the poor in a given poor area. The main reason for this could be that the implementation design of these programs fails to target the poor.

Download or read book Transient Poverty in Rural China written by Martin Ravallion and published by . This book was released on 2016 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors study transient poverty in a six-year panel dataset for a sample of 5,000 households in post-reform rural China. Half of the mean squared poverty gap is transient, in that it is directly attributable to fluctuations in consumption over time. There is enough transient poverty to treble the cost of eliminating chronic poverty when targeting solely according to current consumption - and to title the balance in favor of untargeted transfers. Transient poverty is low among the chronically poorest, and tends to be high among those near the poverty line. Using censored quantile regression techniques, the authors find that systemic factors determine transient poverty, although they are generally congruent with the determinants of chronic poverty. There is little to suggest that the two types of poverty are created by fundamentally different processes. It appears that the same things that would help reduce chronic poverty - higher and more secure farm yield and higher levels of physical and human capital - would also help reduce transient poverty.

Download or read book Chronic and Transient Poverty in Mexico written by Jorge Garza-Rodriguez and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper uses panel data to decompose total poverty into its chronic and transient components and to estimate the determinants of each type of poverty for the case of Mexico. It was found that 69 percent of total poverty is chronic and 31 percent is transient. Using censored quantile regressions techniques, it was observed that the variables explaining chronic poverty are different from those explaining transient poverty. These results indicate that chronic poverty is an issue which should have a high priority on the public policy agenda and that different public policies are needed to target chronic and transient poverty.

Download or read book Why Poverty Persists written by Bob Baulch and published by Edward Elgar Publishing. This book was released on 2011 with total page 297 pages. Available in PDF, EPUB and Kindle. Book excerpt: Why Poverty Persists significantly advances our understanding of the temporal dimensions of poverty. Its judicious mix of new evidence and improved methods offers new insights into why some people remain mired in poverty and the forces that keep them there. All those interested in combating poverty - academics, donors and those working in the non-governmental organizations - will learn from the carefully constructed African and Asian case studies presented. John Hoddinott, International Food Policy Research Institute, Washington DC, US Ten years ago Bob Baulch and John Hoddinott drew our attention to the phenomenon of poverty dynamics" - an insight into the unpredictability of poor peoples livelihoods that had profound implications for poverty thinking and policy, forcing a rethink of static conceptualisations and measurement and raising challenges for targeting anti-poverty programmes. In this new volume, Baulch and colleagues enrich this understanding with rigorous analysis of panel datasets from six countries in Africa and Asia. Most impressively, this illuminating collection by technical microeconometricians is equally accessible to non-technical readers, which effectively communicates its important messages to development policy-makers and practitioners. Stephen Devereux, University of Sussex, UK This volume on poverty dynamics in developing countries, whose authors include the leaders in this field, is a must for analysts and research students. It advances the literature by addressing three important issues - measurement error, attrition, and tracking. For each of these questions, the volume leads by example, showing how they can be handled in specific cases. The results show that escape from poverty is a diverse phenomenon, and establish the importance of country and context specificity. The volume provide an analytical platform for careful policy assessment of policy alternatives. Ravi Kanbur, Cornell University, US At the beginning of the 2000-2010 decade, Bob Baulch (with John Hoddinott) was setting the micro-econometric agenda on poverty dynamics and chronic poverty and producing work that "non-economists" had to read if they wanted to conduct serious research on these issues. In this volume - though his analytical excellence, the pursuit and methodological rigour, extraordinary energy, and his ability to lead such a distinguished network of colleagues - Bob Baulch has set the research agenda on poverty dynamics and chronic poverty for the next ten years. - From the foreword by David Hulme, University of Manchester,UK

Download or read book No Poverty written by Walter Leal Filho and published by Springer. This book was released on 2021-05-11 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The problems related to the process of industrialisation such as biodiversity depletion, climate change and a worsening of health and living conditions, especially but not only in developing countries, intensify. Therefore, there is an increasing need to search for integrated solutions to make development more sustainable. The United Nations has acknowledged the problem and approved the “2030 Agenda for Sustainable Development”. On 1st January 2016, the 17 Sustainable Development Goals (SDGs) of the Agenda officially came into force. These goals cover the three dimensions of sustainable development: economic growth, social inclusion and environmental protection. The Encyclopedia of the UN Sustainable Development Goals comprehensively addresses the SDGs in an integrated way. It encompasses 17 volumes, each devoted to one of the 17 SDGs. This volume addresses SDG 1, namely "End poverty in all its forms everywhere" and contains the description of a range of terms, which allows for a better understanding and fosters knowledge about it. Concretely, the defined targets are: Eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day Reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions Implement nationally appropriate social protection systems and measures for all, including floors, and achieve substantial coverage of the poor and the vulnerable Ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance Build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters Ensure significant mobilization of resources from a variety of sources, including through enhanced development cooperation, in order to provide adequate and predictable means for developing countries, in particular least developed countries, to implement programmes and policies to end poverty in all its dimensions Create sound policy frameworks at the national, regional and international levels, based on pro-poor and gender-sensitive development strategies, to support accelerated investment in poverty eradication actions Editorial Board Sarah Ahmed, Bankole Osita Awuzie, Katarzyna Cichos, Fernanda Frankenberger, Usha Iyer-Raniga, Amanda Lange Salvia, Pinar Gökçin Özuyar, Kalterina Shulla, Ranjit Voola