Advanced Search
MyIDEAS: Login to save this book chapter or follow this series

Do Conflicts Create Poverty Traps? Asset Losses and Recovery for Displaced Households in Colombia

In: The Economics of Crime: Lessons for and from Latin America

Contents:

Author Info

  • Ana María Ibañez
  • Andrés Moya

Abstract

Internal conflicts entail large asset losses for certain segments in the civilian population. Asset losses may compromise the future welfare of households, thus leaving a legacy of structural poverty that is difficult to overcome. The purpose of this article is to analyze how asset losses occur during internal conflicts and the process of asset accumulation following the initial shock. To do this, we concentrate on a particularly vulnerable group of victims of war—the displaced population in Colombia. In achieving our objective, we adopt quantitative and qualitative approaches by: (i) providing a detailed description of losses stemming from forced displacement; (ii) analyzing qualitative evidence so as to understand the asset recovery processes for the displaced population; and (iii) estimating OLS, Instrumental Variable and quartile regressions in order to identify the determinants of asset losses stemming from forced displacement, and asset accumulation following the initial shock. The results indicate that recuperating asset losses or accumulating new assets is a rare event; only 25 percent of households are able to recover their original asset base, while asset ownership still seems insufficient for overcoming poverty. In addition, displaced households do not catch up even as settlement at destination sites consolidates. Therefore, unless a positive intervention is implemented, displaced households become locked in a low income trajectory, and are unlikely to leap forward to a high return asset level.

(This abstract was borrowed from another version of this item.)

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.nber.org/chapters/c11837.pdf
Download Restriction: no

Bibliographic Info

as in new window

This chapter was published in:

  • Rafael Di Tella & Sebastian Edwards & Ernesto Schargrodsky, 2010. "The Economics of Crime: Lessons for and from Latin America," NBER Books, National Bureau of Economic Research, Inc, number dite09-1, octubre-d.
    This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 11837.

    Handle: RePEc:nbr:nberch:11837

    Contact details of provider:
    Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
    Phone: 617-868-3900
    Email:
    Web page: http://www.nber.org
    More information through EDIRC

    Related research

    Keywords:

    Other versions of this item:

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Patricia Justino & Philip Verwimp, 2008. "Poverty Dynamics, Violent Conflict and Convergence in Rwanda," Research Working Papers 4, MICROCON - A Micro Level Analysis of Violent Conflict.
    2. Azam, Jean-Paul & Hoeffler, Anke, 2001. "Violence Against Civilians in Civil Wars: Looting or Terror?," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    3. Zimmerman, Frederick J. & Carter, Michael R., 2003. "Asset smoothing, consumption smoothing and the reproduction of inequality under risk and subsistence constraints," Journal of Development Economics, Elsevier, vol. 71(2), pages 233-260, August.
    4. Rosenzweig, Mark R. & Binswanger, Hans P., 1989. "Wealth, Weather Risk and the Composition and Profitability of Agricultural Investments," Bulletins 7455, University of Minnesota, Economic Development Center.
    5. Gaviria, Alejandro, 1998. "Increasing Returns and the Evolution of Violent Crime: The Case of Columbia," University of California at San Diego, Economics Working Paper Series qt6x42726z, Department of Economics, UC San Diego.
    6. Stefan Dercon, 1996. "Wealth, risk and activity choices: cattle in Western Tanzania," Economics Series Working Papers WPS/1996-08, University of Oxford, Department of Economics.
    7. Ethan Ligon & Jonathan P. Thomas & Tim Worrall, 1997. "Informal Insurance Arrangements in Village Economies," Keele Department of Economics Discussion Papers (1995-2001) 97/08, Department of Economics, Keele University, revised Oct 2000.
    8. Michelle Adato & Michael Carter & Julian May, 2006. "Exploring poverty traps and social exclusion in South Africa using qualitative and quantitative data," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 226-247.
    9. Fafchamps, Marcel & Udry, Christopher & Czukas, Katherine, 1998. "Drought and saving in West Africa: are livestock a buffer stock?," Journal of Development Economics, Elsevier, vol. 55(2), pages 273-305, April.
    10. Marcel Fafchamps & Flore Gubert, 2005. "The Formation of Risk Sharing Networks," Working Papers DT/2005/13, DIAL (Développement, Institutions et Mondialisation).
    11. Oded Galor & Joseph Zeira, 2013. "Income Distribution and Macroeconomics," Working Papers 2013-12, Brown University, Department of Economics.
    12. Steven N. Durlauf, 1992. "A Theory of Persistent Income Inequality," NBER Working Papers 4056, National Bureau of Economic Research, Inc.
    13. Christopher Barrett & Paswel Phiri Marenya & John Mcpeak & Bart Minten & Festus Murithi & Willis Oluoch-Kosura & Frank Place & Jean Claude Randrianarisoa & Jhon Rasambainarivo & Justine Wangila, 2006. "Welfare dynamics in rural Kenya and Madagascar," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 248-277.
    14. Ana María Ibáñez & Andrea Velásquez, 2006. "El Proceso De Identificación De Víctimas De Los Conflictos Civiles: Una Evaluación Para La Población Desplazada En Colombia," DOCUMENTOS CEDE 002537, UNIVERSIDAD DE LOS ANDES-CEDE.
    15. Dilip Mookherjee & Debraj Ray, 2000. "Contractual Structure and Wealth Accumulation," Boston University - Institute for Economic Development 107, Boston University, Institute for Economic Development.
    16. Reardon, Thomas & Vosti, Stephen A., 1995. "Links between rural poverty and the environment in developing countries: Asset categories and investment poverty," World Development, Elsevier, vol. 23(9), pages 1495-1506, September.
    17. Andre, Catherine & Platteau, Jean-Philippe, 1998. "Land relations under unbearable stress: Rwanda caught in the Malthusian trap," Journal of Economic Behavior & Organization, Elsevier, vol. 34(1), pages 1-47, January.
    18. Sen, Binayak, 2003. "Drivers of Escape and Descent: Changing Household Fortunes in Rural Bangladesh," World Development, Elsevier, vol. 31(3), pages 513-534, March.
    19. Foster, Andrew D, 1995. "Prices, Credit Markets and Child Growth in Low-Income Rural Areas," Economic Journal, Royal Economic Society, vol. 105(430), pages 551-70, May.
    20. Andrew D. Foster & Mark R. Rosenzweig, 2001. "Imperfect Commitment, Altruism, And The Family: Evidence From Transfer Behavior In Low-Income Rural Areas," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 389-407, August.
    21. John Hoddinott, 2006. "Shocks and their consequences across and within households in Rural Zimbabwe," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 301-321.
    22. Jacoby, Hanan G & Skoufias, Emmanuel, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," Review of Economic Studies, Wiley Blackwell, vol. 64(3), pages 311-35, July.
    23. Townsend, Robert M, 1994. "Risk and Insurance in Village India," Econometrica, Econometric Society, vol. 62(3), pages 539-91, May.
    24. Corbett, Jane, 1988. "Famine and household coping strategies," World Development, Elsevier, vol. 16(9), pages 1099-1112, September.
    25. Behrman, Jere R, 1988. "Intrahousehold Allocation of Nutrients in Rural India: Are Boys Favored? Do Parents Exhibit Inequality Aversion?," Oxford Economic Papers, Oxford University Press, vol. 40(1), pages 32-54, March.
    26. Stefanie Engel & Ana María Ibáñez, 2007. "Displacement Due to Violence in Colombia: A Household-Level Analysis," Economic Development and Cultural Change, University of Chicago Press, vol. 55, pages 335-365.
    27. Hulme, David & Shepherd, Andrew, 2003. "Conceptualizing Chronic Poverty," World Development, Elsevier, vol. 31(3), pages 403-423, March.
    28. Ana María Ibáñez & Andrés Moya, 2006. "¿Cómo El Desplazamiento Forzado Deteriora El Bienestar De Los Hogares Desplazados?: Análisis Y Determinantes Del Bienestar En Los Municipios De Recepción," DOCUMENTOS CEDE 003789, UNIVERSIDAD DE LOS ANDES-CEDE.
    29. Robert Jensen, 2000. "Agricultural Volatility and Investments in Children," American Economic Review, American Economic Association, vol. 90(2), pages 399-404, May.
    30. Ana María Ibáñez & Andrés Moya, 2006. "The Impact of Intra-State Conflict on Economic Welfare and Consumption Smoothing: Empirical Evidence for the Displaced Population in Colombia," HiCN Working Papers 23, Households in Conflict Network.
    31. Peter Little & M. Priscilla Stone & Tewodaj Mogues & A. Peter Castro & Workneh Negatu, 2006. "'Moving in place': Drought and poverty dynamics in South Wollo, Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 200-225.
    32. Anirudh Krishna & Daniel Lumonya & Milissa Markiewicz & Firminus Mugumya & Agatha Kafuko & Jonah Wegoye, 2006. "Escaping poverty and becoming poor in 36 villages of Central and Western Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 346-370.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Valentina Calderón & Ana María Ibáñez, 2005. "Labor Market Effects of Migration-Related Supply Shocks: Evidence from Internally Displaced Populations in Colombia," DOCUMENTOS CEDE 005851, UNIVERSIDAD DE LOS ANDES-CEDE.
    2. Ingunn Bjørkhaug, 2010. "Child Soldiers in Colombia: The Recruitment of Children into Non-state Violent Armed Groups," Research Working Papers 27, MICROCON - A Micro Level Analysis of Violent Conflict.
    3. Moya, A., 2012. "Violence, Emotional Distress and Induced Changes in Risk Aversion among the Displaced Population in Colombia," Working papers 105, Rimisp Latin American Center for Rural Development.
    4. Trani, Jean-François & Cannings, Tim I., 2013. "Child Poverty in an Emergency and Conflict Context: A Multidimensional Profile and an Identification of the Poorest Children in Western Darfur," World Development, Elsevier, vol. 48(C), pages 48-70.
    5. Ana María Ibáñez L. & Manuel Fernández & Ximena Peña, 2011. "Adjusting the Labor Supply to Mitigate Violent Shocks: Evidence from Rural Colombia," DOCUMENTOS CEDE 009246, UNIVERSIDAD DE LOS ANDES-CEDE.
    6. Juliana Helo, 2011. "Una evaluación de los programas de estabilización para la población desplazada en Colombia - estimación de un modelo estructural," DOCUMENTOS CEDE 008915, UNIVERSIDAD DE LOS ANDES-CEDE.
    7. María Alejandra Arias & Ana María Ibáñez & Andrés Zambrano, 2014. "Agricultural Production Amid Conflict: The Effects of Shocks, Uncertainty, and Governance of Non-State Armed Actors," DOCUMENTOS CEDE 011005, UNIVERSIDAD DE LOS ANDES-CEDE.
    8. Isabelle Joumard & Juliana Londoño Vélez, 2013. "Income Inequality and Poverty in Colombia - Part 1. The Role of the Labour Market," OECD Economics Department Working Papers 1036, OECD Publishing.
    9. Ibáñez, Ana María & Moya, Andrés, 2010. "Vulnerability of Victims of Civil Conflicts: Empirical Evidence for the Displaced Population in Colombia," World Development, Elsevier, vol. 38(4), pages 647-663, April.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:nbr:nberch:11837. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.