Poverty persistence and poverty dynamics

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in ProsA considerable part of poverty measured in a single period is transitory rather than persistent. Distinguishing between temporary and persistent poverty is important as economic policy should focus on preventing persistent poverty. Understanding characteristics of the persistently poor and events associated with entry and exit into poverty are important for informing anti-poverty policies. The characteristics of the persistently poor are often different from those of the currently poor. It is relevant for economic policy to know whether poverty persistence is due to individual characteristics or to poverty-trap mechanisms (being poor today increases the risk of being poor in the future). eLeVatOr PitCHA considerable part of the poverty that is measured in a single period is transitory rather than persistent. In most countries, only a portion of people who are currently poor are persistently poor. People who are persistently poor or who cycle into and out of poverty should be the main focus of anti-poverty policies. Understanding the characteristics of the persistently poor, and the circumstances and mechanisms associated with entry into and exit from poverty, can help to inform governments about options to reduce persistent poverty. Differences in poverty persistence across countries can shed additional light on possible sources of poverty persistence. aUtHOr'S Main MeSSaGeNot all people who are poor are persistently poor. Evidence suggests that unemployment, retirement, and single parenthood are closely associated with persistent poverty and that higher education tends to protect against it. There is also evidence of a poverty trap, meaning that policy should aim to prevent people from falling into poverty because once poor, the probability of being poor in the future increases. Policies that promote education, employment, and attachment to work will be most effective in reducing persistent poverty, along with policies that strengthen family and job stability (such as childcare subsidies). ConsHow to weight aspects of poverty persistence such as duration, intensity, and recurrence is unclear. It is difficult econometrically to separate poverty persistence due to individual characteristics from that due to poverty-trap mechanisms. Identifying events associated with poverty entry and exit can inform policies, but a large share of entries and exits cannot be clearly characterized in terms of individual events. There are commo...

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“…See alsoAassve et al (2006),Andriopoulou and Tsakloglou (2011) andBiewen (2014) for a review of the relevant literature.…”

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