Search results

Latin America experienced a long period of sustained growth since 2003 that positively impacted social and labor market indicators, including poverty. This paper contributes to the understanding of this process as it carries out a comparative study of poverty and indigence dynamics in five Latin American countries during 2003–2012. Specifically, it extends the analysis of a previously published study by broadening the time coverage and examining indigence mobility. It analyzes the extent to which countries with different levels of poverty (extreme poverty) incidence diverge in terms of exit and entry rates, and identifies the relative importance of the frequency and impact of events associated with poverty transitions. For this, a dynamic analysis of panel data is carried out using regular household surveys. Sizeable rates of poverty and indigence movements were observed in all five countries and it was found that a large proportion of poor or indigent households experienced positive events, mainly related to the labor market; however, only a small fraction of them actually exited poverty and indigence. It appeared, therefore, that even when the economy behaved reasonably well, high levels of labor turnover and income mobility (even of a negative nature) still prevail, mainly associated with the high level of precariousness and the undeveloped system of social protection that characterize the studied countries.

Purpose – This chapter investigates vulnerability to poverty in the Republic of Haiti.

Methodology – We use a hierarchical modeling technique to allow the assessment and decomposition of vulnerability to poverty by exploiting the short-panel structure of nested data in a cross section.

Originality – Specifically, a three-level hierarchical model with a partially Bayesian restricted maximum likelihood is used in the estimation procedure. This is novel in this literature.

Findings – The decomposition method adopted in this chapter reveals that vulnerability in the Republic of Haiti is largely a rural phenomenon and is correlated negatively with schooling. The results also disclose the lack of equality in various aspects of circumstances or opportunities, including education, as the salient factor determining the status and level of vulnerability of households. Most importantly, among the different shocks affecting household's income, it is found that meso-level shocks are in general far more important than covariate shocks. This finding points to some interesting policy implications in terms of decentralizing policies and delegating more powers and providing better means to local governments to enhance household resilience to shocks and to alleviate their vulnerability to poverty.

The paper analyses the effects of individual and household characteristics on current poverty status, while controlling for initial conditions, past poverty status and unobserved heterogeneity in 14 European countries for the period 1994–2001, using the European Community Household Panel. The distinction between true state dependence and individual heterogeneity has important policy implications, since if the former is the main cause of poverty it may be crucial to break the ‘vicious circle’ of poverty using income-supporting social policies, whereas if it is the latter anti-poverty policies should focus primarily on education, training, development of personal skills and other labour market oriented policies. The empirical results are similar in qualitative terms but rather different in quantitative terms across the EU countries covered in the paper. State dependence remains significant in all model specifications, even after controlling for unobserved heterogeneity or when removing possible endogeneity bias. Higher poverty rates and higher poverty persistence are associated with particular welfare state regimes, although the link is substantially weakened when other explanatory variables are included in the analysis.

This chapter examines practical strategies to address issues related to poverty in small to mid-sized urban districts. Data clearly demonstrates that students in poverty perform at a lesser rate than their affluent peers. The greatest challenge facing public school leaders is educating students in poverty. This chapter is informed and supported by the existing educational research base and drawn primarily from our authentic experiences as educational leaders in public schools. The information shared is realistic, practical, and uniquely derived from day to day public school life.

There is a paradox in the normative foundations for chronic and intertemporal poverty measurement. Measures that reflect particular aversion to chronicity of poverty cannot also reflect particular aversion to fluctuations in the level of poverty when poverty is intense, yet good arguments are made in favour of each of these properties. I argue that the paradox may be explained if the poverty analyst implicitly predicts that an individual observed to experience persistent poverty will continue to experience poverty when unobserved. The paradox may then be resolved by separating the normative exercise of evaluation, applying a measure that reflects particular aversion to fluctuations, from a positive exercise of modelling and prediction. This proposal is illustrated by application to panel data from rural Ethiopia, covering the period 1994–2004. Several dynamic models are estimated, and a simple model with household-specific trends is found to give the best predictions of future wellbeing levels. Appropriately normalised measures of intertemporal poverty are applied to the predicted and observed trajectories of wellbeing, and results are found to differ substantially from naïve application of the measures to observed periods only. While similar results are obtained by naïve application of the measures that embody particular aversion to chronicity, separation of the normative and positive exercises maintains conceptual clarity.

Most poverty research has explored monetary poverty. This chapter presents and analyzes the global multidimensional poverty index (MPI) estimations for China. Using China Family Panel Studies (CFPS), we find China’s global MPI was 0.035 in 2010 and decreased significantly to 0.017 in 2014. The dimensional composition of MPI suggests that nutrition, education, safe drinking water, and cooking fuel contribute most to overall non-monetary poverty in China. Such analysis is also applied to subgroups, including geographic areas (rural/urban, east/central/west, provinces), as well as social characteristics such as gender of the household heads, age, education level, marital status, household size, migration status, ethnicity, and religion. We find the level and composition of poverty differs significantly across certain subgroups. We also find high levels of mismatch between monetary and multidimensional poverty at the household level, which highlights the importance of using both complementary measures to track progress in eradicating poverty.

An axiomatic approach is used to propose a measure of extreme poverty which is not only multidimensional in nature, but also recognizes the fact that there are interaction effects between different deprivations, and that the length of time during which deprivations are felt may also have a negative impact on household well-being. The proposed definition of extreme poverty formalizes an approach developed by Joseph Wresinski, the founder of the International Movement ATD Fourth World.

The author proposes analyzing the dynamics of income positions using dynamic panel ordered probit models. The author disentangles, simultaneously, the roles of state dependence and heterogeneity (observed and non-observed) in explaining income position persistence, such as poverty persistence and affluence persistence. The author applies the approach to Chile exploiting longitudinal data from the P-CASEN 2006–2009. First, the author finds that income position mobility at the bottom and the top of the income distribution is much higher than expected, showing signs that income mobility in the case of Chile might be connected to economic insecurity. Second, the observable individual characteristics have a much stronger impact than true state dependence to explain individuals’ current income position in the income distribution extremes.

There has been a rapid expansion in the literature on the measurement of multidimensional poverty in recent years. This paper focuses on the longitudinal aspects of multidimensional poverty and its link to dynamic income poverty measurement. Using panel household survey data in Vietnam from 2007, 2008, and 2010, the paper analyses the prevalence and dynamics of both multidimensional and monetary poverty from the same dataset. The results show that the monetary poor (or non-poor) are not always multidimensionally poor (or non-poor) – indeed the overlap between the two measures is much less than 50 percent. Additionally, monetary poverty shows faster progress as well as a higher level of fluctuation than multidimensional poverty. We suggest that rapid economic growth as experienced by Vietnam has had a larger and more immediate impact on monetary than on multidimensional poverty.