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The Persistence of Subjective Poverty in Urban Ethiopia

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  • Alem, Yonas
  • Köhlin, Gunnar
  • Stage, Jesper

Abstract

Using data spanning 15years, we study subjective and consumption poverty in urban Ethiopia. Despite rapid economic growth and declining consumption poverty, subjective poverty remains largely unchanged. We find that households with a history of poverty continue to perceive themselves as poor even if their material consumption improves. The relative economic position of households is a strong determinant of subjective poverty. Having some type of employment makes households less likely to perceive themselves as poor, even if they remain in objective poverty. We argue that any analysis to measure the impact of growth on welfare should also encompass subjective measures.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 56 (2014)
Issue (Month): C ()
Pages: 51-61

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Handle: RePEc:eee:wdevel:v:56:y:2014:i:c:p:51-61

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: Africa; Ethiopia; subjective poverty; dynamic probit;

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Cited by:
  1. Nicola Banks, 2014. "Livelihoods Limitations: The Political Economy of Urban Poverty in Bangladesh," Brooks World Poverty Institute Working Paper Series 19914, BWPI, The University of Manchester.

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