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 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 Transient and Chronic Rural Household Poverty written by Milu Charles Muyanga and published by . This book was released on 2018 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most of the earlier studies of poverty in Kenya have basically been static in nature. They have attempted to measure household welfare -- incidence, gap and severity -- at a point in time. Such studies are undeniably vital. However, they do not necessarily provide a good indication of welfare stability over time. This study makes an empirical contribution to poverty analysis in Kenya by incorporating poverty dynamics dimension. We first examine poverty dynamics using economic transition matrices. Next, we decompose total poverty into transient and chronic poverty components using transient poverty as censored fluctuation and equally-distributed equivalent poverty gaps approaches for comparison. The latter approach introduces inequality into poverty decomposition. Finally, we establish important correlates of poverty components using quantile-censored and non-parametric regressions. Given the high rural household poverty incidences and the country's limited resources, this study has critical implications for economic policy in Kenya.
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 Transient and Chronic Rural Household Poverty written by Milu Charles Muyanga and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most of the earlier studies of poverty in Kenya have basically been static in nature. They have attempted to measure household welfare - incidence, gap and severity - at a point in time. Such studies are undeniably vital. However, they do not necessarily provide a good indication of welfare stability over time. This study makes an empirical contribution to poverty analysis in Kenya by incorporating poverty dynamics dimension. We first examine poverty dynamics using economic transition matrices. Next, we decompose total poverty into transient and chronic poverty components using transient poverty as censored fluctuation and equally-distributed equivalent poverty gaps approaches for comparison. The latter approach introduces inequality into poverty decomposition. Finally, we establish important correlates of poverty components using quantile-censored and non-parametric regressions. Given the high rural household poverty incidences and the country's limited resources, this study has critical implications for economic policy in Kenya.
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 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 Transient Poverty in Rural China written by Martin Ravallion and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: June 1996 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 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 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 Chronic Poverty in a Remote Rural District in South West Madhya Pradesh written by Amita Shah and published by . This book was released on 2014 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: The structuralist perspective envisages poverty, especially in rural India, as a long duration phenomenon. Over time, most of the structural features of poverty have remained more or less intact. As a result, a large proportion of the poor in India are also chronically poor in terms of duration as well as severity (Mehta and Shah, 2002). Economic growth achieved through the processes of planned development since the early fifties, have made a significant dent in the incidence of poverty measured in terms of average expenditure of the households. Thus, incidence of poverty in India declined from 52 per cent in 1977-78 to 39 per cent in 1987-88 and further to 36 percent in 1993-94 and 27 per cent in 1999-2000 (Hirway and Dev, 2000). This suggests a substantial impact in terms of poverty reduction at an aggregate level. The impact, however has been fairly varied across regions and households. Three different trajectories can be visualized for those who were poor in the initial period. These are: (i) crossing over the poverty barrier on a sustained basis, (ii) moving above and below the poverty line, and (iii) always remaining below the poverty line. The households experiencing different trajectories represent non-poor, transient poor, and chronically poor (in duration sense). A fourth category consists of households that have never been poor.
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 Rural Poverty in Developing Countries written by Mr.Mahmood Hasan Khan and published by International Monetary Fund. This book was released on 2001-03-14 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Reviews causes of poverty in rural areas and presents a policy framework for reducing rural poverty, including through land reform, public works programs, access to credit, physical and social infrastructure, subsidies, and transfer of technology. Identifies key elements for drafting a policy to reduce rural poverty.
Download or read book Shock Waves written by Stephane Hallegatte and published by World Bank Publications. This book was released on 2015-11-23 with total page 227 pages. Available in PDF, EPUB and Kindle. Book excerpt: Ending poverty and stabilizing climate change will be two unprecedented global achievements and two major steps toward sustainable development. But the two objectives cannot be considered in isolation: they need to be jointly tackled through an integrated strategy. This report brings together those two objectives and explores how they can more easily be achieved if considered together. It examines the potential impact of climate change and climate policies on poverty reduction. It also provides guidance on how to create a “win-win†? situation so that climate change policies contribute to poverty reduction and poverty-reduction policies contribute to climate change mitigation and resilience building. The key finding of the report is that climate change represents a significant obstacle to the sustained eradication of poverty, but future impacts on poverty are determined by policy choices: rapid, inclusive, and climate-informed development can prevent most short-term impacts whereas immediate pro-poor, emissions-reduction policies can drastically limit long-term ones.
Download or read book Rural Poverty in Developing Countries written by Mr. Mahmood Hasan Khan and published by International Monetary Fund. This book was released on 2000-04-01 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: In most developing countries, poverty is more widespread and severe in rural than in urban areas. The author reviews some important aspects of rural poverty and draws key implications for public policy. He presents a policy framework for reducing poverty, taking into account the functional differences and overlap between the rural poor. Several policy options are delineated and explained, including stable management of the macroeconomic environment, transfer of assets, investment in and access to the physical and social infrastructure, access to credit and jobs, and provision of safety nets. Finally, some guideposts are identified for assessing strategies to reduce rural poverty.
Download or read book The Dynamics of Poverty written by Ravi Kanbur and published by . This book was released on 1999 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: August 1995 - In urban areas of Côte d'Ivoire, human capital is the endowment that best explains welfare changes over time. In rural areas, physical capital - especially the amount of land and farm equipment owned - matters most. Empirical investigations of poverty in developing countries tend to focus on the incidence of poverty at a particular point in time. If the incidence of poverty increases, however, there is no information about how many new poor have joined the existing poor and how many people have escaped poverty. Yet this distinction is of crucial policy importance. The chronically poor may need programs to enhance their human and physical capital endowments. Invalids and the very old may need permanent (targeted) transfers. The temporarily poor, on the other hand, may best be helped with programs that complement their own resources and help them bridge a difficult period. Results from analyses of panel surveys show significant mobility into and out of poverty and reveal a dynamism of the poor that policy should stimulate. Understanding what separates chronic from temporary poverty requires knowing which characteristics differentiate those who escape poverty from those who don't. In earlier work, Grootaert, Kanbur, and Oh found that region of residence and socioeconomic status were important factors. In this paper they investigate the role of other household characteristics, especially such asset endowments as human and physical capital, in the case of Côte d'Ivoire. In urban areas of Côte d'Ivoire, human capital is the most important endowment explaining welfare changes over time. Households with well-educated members suffered less loss of welfare than other households. What seems to have mattered, though, is the skills learned through education, not the diplomas obtained. Diplomas may even have worked against some households in having oriented workers too much toward a formal labor market in a time when employment growth came almost entirely from small enterprises. In rural areas, physical capital - especially the amount of land and farm equipment owned - mattered most. Smallholders were more likely to suffer welfare declines. Households with diversified sources of income managed better, especially if they had an important source of nonfarm income. In both rural and urban areas, larger households suffered greater declines in welfare and households that got larger were unable to increase income enough to maintain their former welfare level. Households whose heads worked in the public sector maintained welfare better than other households, a finding that confirms earlier observations. The results also suggest that government policies toward certain regions or types of household can outweigh the effects of household endownments. Surprisingly, migrant non-Ivorian households tended to be better at preventing welfare losses than Ivorian households, while households headed by women did better than those headed by men (after controlling for differences in or changes in endowment). The implications for policymakers? First, education is associated with higher welfare levels and helps people cope better with economic decline. Second, targeting the social safety net to larger households - possibly through the schools, to reach children - is justified in periods of decline. Third, smallholders might be targeted in rural areas, and ways found to encourage diversification of income there. This paper - a joint product of the Social Policy and Resettlement Division, Environment Department, and the Africa Regional Office, Office of the Chief Economist - is the result of a research project on The Dynamics of Poverty: Why Some People Escape Poverty and Others Don't, A Panel Analysis for Côte d'Ivoire (RPO 678-70).
