Subjective well-being and relative poverty in rural Bangladesh

This paper revisits the debate over the importance of absolute vs. relative income as a correlate of subjective well-being using data from Bangladesh, one of the poorest countries in the world with high levels of corruption and poor governance. We do so by combining household data with population census and village survey records. Our results show that conditional on own household income, respondents report higher satisfaction levels when they experience an increase in their income over the past years. More importantly, individuals who report their income to be lower than their neighbours in the village also report less satisfaction with life. At the same time, our evidence suggests that relative wealth effect is stronger for the rich. Similarly, in villages with higher inequality, individuals report less satisfaction with life. However, when compared to the effect of absolute income, these effects (i.e. relative income and local inequality) are modest. Amongst other factors, we study the influence of institutional quality. Institutional quality, measured in terms of confidence in police, matters for well-being: it enters with a positive and significant coefficient in the well-being function.

An overview of issues associated with the US poverty line

Includes bibliography

Seuil relatif, mesure floue de la pauvreté. Nouvelles propositions

Afin de contourner la définition usuelle de la pauvreté selon laquelle les individus sont pauvres s’ils sont en deçà d’un certain seuil nous appliquons la méthode floue pour proposer des classes d'indices flous de pauvreté unidimensionnelle et multidimensionnelle basées sur la définition d'une fonction d’appartenance et un seuil de pauvreté par ménage. Nous illustrons également certains de nos concepts proposés à partir d’une enquête réalisée en 1990 sur des ménages tunisiens. Nous cherchons à montrer comment les choix des autorités publiques ou des institutions internationales peuvent se refléter dans ces indices de pauvreté.

Options for rural poverty reduction in Latin America and the Caribbean

Includes bibliography

Relating severe poverty and chronic poverty

The severely poor are very poor since their consumption is far below the absolute poverty line, and the chronically poor are very poor since their consumption persists for long periods below the absolute poverty line. A combination of chronic poverty and severe poverty (CSP) must represent the very worst instance of poverty. Yet the exercise in this paper of asking simple questions about CSP shows large research gaps. Quantified statements on CSP at the country level can be made for just 14 countries, and at the household level in just six countries. This data suggests a positive correlation between severe poverty and chronic poverty, both at the country level and the household level. Understanding the CSP relationship – whether it is strong, where it arises, what causes it – may improve our explanation of observed cross-country variation in the elasticity between macroeconomic growth and poverty reduction, and why within countries, some households take better advantage of opportunities afforded by macroeconomic growth. Some limited data suggests similarity in socioeconomic characteristics of the severe poor and the chronic poor in terms of location, household size, gender, education and economic sector of work. Of concern is that microlongitudinal datasets drop large proportions of their base year samples, and how this affects our understanding of CSP is not well evaluated. On causal mechanisms, evidence suggests that CSP may be caused by parental CSP (i.e. an intergenerational CSP cycle) and in households not previously poor, CSP may be caused by a morbidity cycle.

Farm Poverty in Kerala: A case study of Alappuzha, Trissur, Palakkad and Wayanad

The present study was an attempt to analytically approach the problem of farm poverty in Kerala from an entirely different angle by incorporating an independently developed and reformulated definition of poverty line in terms of physical units of operational holdings (say, acre). The entire discussion on farm poverty emerged out of proper co-ordination of two important factors popularly considered as the distinct features of Ipoverty, conducted in the light of inter regional variations in farm productivity tried to highlight various grave issues deserving thorough introspection.

Short-term poverty dynamics of rural households: Evidence from Central Sulawesi, Indonesia

The understanding of poverty dynamics is crucial for the design of appropriate poverty reduction strategies. Taking the case of Central Sulawesi, we investigate the determinants of both chronic and transitory poverty using data from 264 randomly selected households interviewed in 2005 and 2007. Regarding the US 1$/day poverty line, the headcount index declined from 19.3% in 2005 to 18.2% in 2007. However, we observed an increasing number of people living on less than US 2$/day expressed in purchasing power parity (PPP). The results of the estimated multinomial logit model applied in this study indicate that a lack of non-agricultural employment opportunities and low endowment of social capital are major determinants of chronic as well as transitory poverty in this province of Indonesia. These results are used to draw policy conclusions with respect to the alleviation of transitory and chronic poverty in Central Sulawesi.

Symptoms and causes of poverty in a rural Vietnamese commune: Does ethnicity matter?

This study uses data from a sample survey of 200 households drawn from a mountainous commune in Vietnam’s North Central Coast region to measure and explain relative poverty. Principal components analysis is used to construct a multidimensional index of poverty outcomes from variables measuring household income and the value of domestic assets. This index of poverty is then regressed on likely causes of poverty including different forms of resource endowment and social exclusion defined by gender and ethnicity. The ordinary least squares estimates indicate that poverty is indeed influenced by ethnicity, partly through its interaction with social capital. However, poverty is most strongly affected by differences in human and social capital. Differences in the amount of livestock and high quality farmland owned also matter. Thai households are poorer than their Kinh counterparts even when endowed with the same levels of human, social, physical and natural capital considered in the study. This empirical result provides a rationale for further research on the causal relationship between ethnicity and poverty outcomes.

Conflict-induced poverty: Evidence from Colombia

En Colombia, la pobreza y el conflicto están estrechamente relacionados. Este estudio usa medidas de disuasión del gobierno como instrumentos de varias variables específicas de conflicto para estimar el impacto del conflicto sobre la pobreza en Colombia. Usando datos del censo a nivel municipal para el año 2005, evalúo el efecto sobre la incidencia urbana y rural del recientemente-desarrollado Índice de Pobreza Multidimensional. Los resultados sugieren que el conflicto aumenta significativamente la pobreza rural. Esto es consistente con el hecho que la mayor parte del conflicto en Colombia ocurre en las áreas rurales. También evalúo el efecto rezagado del conflicto en la pobreza para concluir que éste dura por al menos tres años pero que decae en el tiempo. Finalmente, pruebo que mis resultados son robustos a una batería de especificaciones adicionales, incluyendo una versión modificada de mi variable dependiente y el uso de una base alternativa de conflicto.

ICTs and decision-making: findings from the Poverty Assessor

Pro-poor decision making depends on an understanding of the complexities and interrelationships between household livelihood, demographic, and economic factors. This article describes the design and implementation of the Poverty Assessor, a software programme to assist practitioners, policy makers, and researchers in visualising the direct impacts on poverty of specific livelihood factors and events among populations living in poverty. The software enables users to upload their own data and profile households in relation to the national poverty line, by selecting from a range of demographic and livelihood indicators. The authors present findings from the programme, using a dataset from Bolivia.

Voices of the Poor: Poverty and Growth in Albania

This paper uses three waves of panel surveys at the household level to study growth and poverty in Albania over the period 2002-2004. It attempts to answer two main questions. The first question is directed at finding the micro determinants of growth and aims to expose the obstacles households face to improve their economic situation. The main focus of the analysis is to investigate the importance of health, education, and infrastructure indicators for income growth. The second question asks whether growth in Albania during the period 2002-2004 has been pro-poor. I find that there is some evidence for a convergence of incomes and a pro-poor growth, which has led to a substantial decrease in the number of people living under the poverty line. I also find that infrastructure has not been an important determinant for income mobility, and neither has health. Only the higher education of poor urban households seems to have affected prospects for growing out of poverty, and unexpectedly, the relationship is negative.

A robust poverty profile for Brazil using multiple data sources

This paper presents a poverty profile for Brazil, based on three different sources of household data for 1996. We use PPV consumption data to estimate poverty and indigence lines. “Contagem” data is used to allow for an unprecedented refinement of the country’s poverty map. Poverty measures and shares are also presented for a wide range of population subgroups, based on the PNAD 1996, with new adjustments for imputed rents and spatial differences in cost of living. Robustness of the profile is verified with respect to different poverty lines, spatial price deflators, and equivalence scales. Overall poverty incidence ranges from 23% with respect to an indigence line to 45% with respect to a more generous poverty line. More importantly, however, poverty is found to vary significantly across regions and city sizes, with rural areas, small and medium towns and the metropolitan peripheries of the North and Northeast regions being poorest.

Meeting the millennium poverty reduction targets in Latin America and the Caribbean

Includes bibliography

Policy response to poverty and inequality in the developing world

Includes bibliography