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Chronic and Transitory Poverty in Pakistan: Evidence from a Longitudinal Household Survey

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  • G. M. Arif

    (Pakistan Institute of Development Economics, Islamabad)

  • Faiz Bilquees

    (Former joint Director, Pakistan Institute of Development Economics, Islamabad)

Abstract

This paper analyses the incidence of chronic and transitory poverty in Pakistan in both urban and rural settings. The findings are that rural poverty is severer and also chronic as compared to transitory poverty in urban centres. The main factor behind this phenomenon is the homogeneity of the rural set-up which affects the employment and wage levels adversely. On the other hand, in the urban areas, heterogeneous population with diverse occupations provides better employment and wage opportunities. Furthermore, illiteracy, landlessness, lack of ownership of dwellings, and dependency on sharecropping are the main factors accentuating rural poverty. The paper also analyses the zakat element of the safety net strategy. Contrary to the prevailing perception that zakat does not reach the actually poor, it turns out that in fact zakat has become an  identification mark for the chronic poor. The findings of this paper have significant implications for the poverty reduction strategy of the Government of Pakistan.

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Bibliographic Info

Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 46 (2007)
Issue (Month): 2 ()
Pages: 111-127

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Handle: RePEc:pid:journl:v:46:y:2007:i:2:p:111-127

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Keywords: Poverty; Chronic Poverty; Household Surveys Longitudinal; Pakistan;

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References

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  1. Aniceto C. Orbeta Jr., 2005. "Poverty, Vulnerability and Family Size : Evidence from the Philippines," Development Economics Working Papers 22671, East Asian Bureau of Economic Research.
  2. Mohammad Irfan, 2003. "Poverty and Social Safety Nets: A Case Study of Pakistan," MIMAP Technical Paper Series 2003:15, Pakistan Institute of Development Economics.
  3. G. M. Arif & Syed Mubashir Ali & Zafar Mueen Nasir & Nabeela Arshad, 2001. "An Introduction to the 1998-99 Pakistan Socioeconomic Survey (PSES)," MIMAP Technical Paper Series 2001:04, Pakistan Institute of Development Economics.
  4. Dorosh, Paul A. & Malik, Sohail J., 2006. "Transitions Out of Poverty: Drivers of Real Income Growth for the Poor in Rural Pakistan," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25387, International Association of Agricultural Economists.
  5. G. M. Arif & Faiz Bilquees, 2006. "An Analysis of Sample Attrition in the PSES Panel Data," MIMAP Technical Paper Series 2006:20, Pakistan Institute of Development Economics.
  6. Sarfraz K. Qureshi & G. M. Arif, 2001. "Profile of Poverty in Pakistan, 1998-99," MIMAP Technical Paper Series 2001:05, Pakistan Institute of Development Economics.
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Citations

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Cited by:
  1. G. M. Arif & Shujaat Farooq, 2012. "Rural Poverty Dynamics in Pakistan: Evidence from Three Waves of the Panel Survey," Poverty and Social Dynamics Paper Series 2012:02, Pakistan Institute of Development Economics.
  2. Awan, Masood Sarwar & Iqbal, Nasir & Muhammad, Waqas, 2011. "The impact of human capital on urban poverty: The case of Sargodha city," MPRA Paper 31829, University Library of Munich, Germany.
  3. G. M. Arif & Faiz Bilquees, 2006. "An Analysis of Sample Attrition in the PSES Panel Data," MIMAP Technical Paper Series 2006:20, Pakistan Institute of Development Economics.
  4. Kurosaki, Takashi, 2011. "Vulnerability of Household Consumption to Village-level Aggregate Shocks in a Developing Country," PRIMCED Discussion Paper Series 8, Institute of Economic Research, Hitotsubashi University.
  5. G. M. Arif & Shujaat Farooq, 2012. "Poverty Reduction in Pakistan: Learning from the Experience of China," PIDE Monograph Series 2012:5, Pakistan Institute of Development Economics.
  6. Amjad, Rashid & Arif, G. M. & Mustafa, Usman, 2008. "Does the labor market structure explain differences in poverty in rural Punjab?," MPRA Paper 37977, University Library of Munich, Germany.
  7. repec:pid:wpaper:2012:5 is not listed on IDEAS
  8. Joshi, Niraj Prakash & Maharjan, Keshav Lall & Piya, Luni, 2012. "Poverty dynamics in Far-western Rural Hills of Nepal: Evidences from panel data," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125785, International Association of Agricultural Economists.

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