Poverty Dynamics in Nairobi’s Slums: Testing for True State Dependence and Heterogeneity Effects

Faye, Ousmane; Islam, Nizamul; Zulu, Eliya M.

doi:10.2139/ssrn.1960615

Cited by 3 publications

(3 citation statements)

References 29 publications

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“…28 Our findings highlight the 27 Fusco and Islam (2011) obtain a value of 0.38 and 0.70 for GSD and ASD, respectively for the case of Luxembourg. And, Faye et al (2011) estimate GSD to be 90 % of ASD in Nairobi's slums. However, note that their data set consists of only two waves.…”

Section: Model Specificationmentioning

confidence: 99%

Understanding poverty persistence in Spain

Ayllón

2012

SERIEs

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The aim of this paper is to study the mechanisms behind poverty persistence in Spain. We examine the importance of past poverty experiences for explaining current poverty as opposed to observed and unobserved individual heterogeneity. Our results are based on the model proposed by Cappellari and Jenkins (J Appl Econometr 19:593-610, 2004a) that estimates poverty transitions while simultaneously controlling for attrition and initial conditions. We find that about 50 % of aggregate state dependence is genuine: poverty in a given year increases in itself the chances of experiencing poverty again in the future. The remainder is explained, among other characteristics, by living with a head of household who has no educational qualifications, being an immigrant or cohabiting with teenagers. Our findings call for a comprehensive and coordinated strategy against poverty that should focus equally on income-support policies and on enhancing those characteristics that best protect against economic hardship. From a methodological point of view, we learn that unobservables affecting initial conditions and sample retention are exogenous to those related to poverty transience. However, results prove to be sensitive to the choice of poverty line.

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Section: Model Specificationmentioning

confidence: 99%

Understanding poverty persistence in Spain

Ayllón

2012

SERIEs

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“…To our knowledge, the REDP model has only been applied by Alem (2011) and Islam and Shimless (2007) to study state dependency in poverty in Ethiopia. The ESPM is used by Faye et al (2011) and Ribas et al (2006) to study poverty in Nairobi slums and in Brazil respectively. They all find strong evidence of state dependence in their data.…”

Section: Evidence Of State Dependence In Poverty Dynamics In Rural Mamentioning

confidence: 99%

Does Poverty Trap Rural Malagasy Households?

Thomas

Gaspart

2015

World Development

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This paper studies the determinants of poverty dynamics in several rural areas from Madagascar. A particular attention is devoted to testing if rural poverty persistence in Madagascar could be explained by a vicious circle leading to a poverty trap. Annual poverty transitions retrieved from an original household panel data survey covering the 1996-2006 periods show that differences in household and environment characteristics are clearly associated with di¤erences in poverty transitions probabilities. Poverty-vulnerable households have higher dependency ratio and are less educated. They also show different income-generating activities pattern. They cultivate less market-oriented crops and have more vulnerable activities such as agricultural wage work. A Markovian poverty transition model is used to evaluate the role of past poverty in this situation. Past poverty is allowed to have both an intercept and a slope effect on poverty transitions probabilities. Our results show that a substantial share of the di¤erences in household poverty transitions probabilities is attributable to past poverty status. These results encourage the development of social protection to prevent households to fall into a poverty trap as well as speciffic measures to encourage paths out of poverty traps.

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“…Azomahou and Yitbarek (2014), Bigsten and Shimeles (2004), Faye, Islam, and Zulu (2011), Islam and Shimeles (2006), Kedir and McKay (2005), and Mberu et al (2014) are among the relatively few studies that analyse poverty dynamics in urban Sub-Saharan Africa, but none of the above focus on South Africa, and none has made an attempt to differentiate between structural and stochastic mobility.…”

Section: Introductionmentioning

confidence: 99%

Poverty, social mobility, and the middle class: The case of South Africa

Schotte¹

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First and foremost, I am grateful to my first supervisor, Jann Lay, for his guidance, confidence, and encouragement, for his creativity and enthusiasm in developing new research ideas, and his continuous support and academic advice. I also thank my second supervisor,Stephan Klasen, for excellent thesis supervision and many helpful comments, suggestions, and discussions through the learning process of this dissertation. It would have been impossible to conduct this research without the help and contributions of a large number of colleagues. Nevertheless, two key collaborators stand out as having played a major role in the development of this thesis. My sincere thanks goes to professor Murray Leibbrandt, who gave me the opportunity to join his research team at the Southern Africa Labour and Development Research Unit (SALDRU) and who continuously encouraged my work and provided valuable guidance and expertise. A very special gratitude further goes to Rocco Zizzamia for his wonderful collaboration. His input has been indispensable throughout the time of research and writing of this thesis -both as a research partner and as a friend. This thesis has been elaborated at the GIGA German Institute of Global and Area Studies, which offered me an inspiring study and research environment. I am particularly grateful to all members of the Institute of African Affairs (IAA), the Research Programme 3 ("Growth and Development") and the GIGA Doctoral Programme for many helpful comments and suggestions. I am also indebted to all members of the "Globalization and Development" research training group at the University of Göttingen, who provided valuable comments and feedback on earlier revisions of the articles included in this dissertation. This thesis would not have been possible without the generous financial support received from the Evangelisches Studienwerk Villigst. The provided doctoral studies grant enabled me to focus on my research by supporting me financially, for which I am extremely thankful.Last but by far not the least important, I owe more than thanks to my mother, my partner, and my friends for their support and encouragement during my doctoral studies and beyond.Thank you for trusting me in pursuing my own path.

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Poverty Dynamics in Nairobi’s Slums: Testing for True State Dependence and Heterogeneity Effects

Cited by 3 publications

References 29 publications

Understanding poverty persistence in Spain

Understanding poverty persistence in Spain

Does Poverty Trap Rural Malagasy Households?

Poverty, social mobility, and the middle class: The case of South Africa

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