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Argentinas Crises and the Poor, 1995-2002

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  • Guillermo Cruces
  • Quentin Wodon

Abstract

This paper documents the impact of Argentina's recent economic crises on different aspects of poverty, with a special focus on the economic collapse of 2002. We discuss the methodology of poverty measurement in Argentina and we use a simple rule to compensate for the lack of regional poverty figures until 2001, providing consistent series of urban poverty estimates at the national and regional levels. We then present series of short term dynamics of poverty, decomposing the changes in every period of time with panel data. Finally, we analyse the determinants of poverty, with a focus on accounting for observed differences in income (and thereby poverty) between October 2001 and May 2002. Among other conclusions, we find in our decomposition analysis that households without the means to diversify their income sources suffered more than others from the crisis of 2002.

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Bibliographic Info

Paper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Distributional Analysis Research Programme Papers with number 71.

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Date of creation: Jul 2003
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Handle: RePEc:cep:stidar:71

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Web page: http://sticerd.lse.ac.uk/_new/publications/default.asp

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Keywords: Poverty; unemployment; Argentina.;

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  1. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, vol. 102(414), pages 1067-82, September.
  2. Sebasti=E1n Galiani & Hugo A. Hopenhayn, 2001. "Duration and Risk of Unemployment in Argentina," Labor and Demography 0012002, EconWPA.
  3. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  4. Lanjouw, Peter & Ravallion, Martin, 1995. "Poverty and Household Size," Economic Journal, Royal Economic Society, vol. 105(433), pages 1415-34, November.
  5. repec:ebl:ecbull:v:9:y:2003:i:1:p:1-10 is not listed on IDEAS
  6. Paul Makdissi & Quentin Wodon, 2003. "Risk-adjusted measures of wage inequality and safety nets," Economics Bulletin, AccessEcon, vol. 9(1), pages 1-10.
  7. Leonardo Gasparini & Walter Sosa Escudero, 1999. "Bienestar y distribución del ingreso en Argentina, 1980 – 1998," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0(3), pages 183-217.
  8. Frank Cowell & Magda Mercader-Prats, 1999. "Equivalence scales and inequality," LSE Research Online Documents on Economics 2190, London School of Economics and Political Science, LSE Library.
  9. Jorge A. Paz, 2002. "Una introducción a la dinámica de la pobreza en la Argentina," CEMA Working Papers: Serie Documentos de Trabajo. 226, Universidad del CEMA.
  10. Ravallion, Martin & Wodon, Quentin, 1997. "Poor areas, or only poor people?," Policy Research Working Paper Series 1798, The World Bank.
  11. Guillermo Cruces & Quentin Wodon, 2003. "Risk-adjusted poverty in Argentina: measurement and determinants," LSE Research Online Documents on Economics 6550, London School of Economics and Political Science, LSE Library.
  12. Frank A Cowell & Magda Mercader-Prats, 1997. "Equivalence of Scales and Inequality (published in Income Inequality Measurement:From Theory to Practice, J Silber (ed), Dewenter: Kluver (1999)," STICERD - Distributional Analysis Research Programme Papers 27, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  13. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  14. Ravallion, M., 1998. "Poverty Lines in Theory and Practice," Papers 133, World Bank - Living Standards Measurement.
  15. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
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Cited by:
  1. Guillermo Cruces & Quentin T. Wodon, 2003. "Transient and chronic poverty in turbulent times: Argentina 1995-2002," Economics Bulletin, AccessEcon, vol. 9(3), pages 1-12.
  2. Guillermo Cruces & Pablo Glüzman & Luis Felipe López Calva, 2011. "Economic Crises, Maternal and Infant Mortality, Low Birth Weight and Enrollment Rates: Evidence from Argentina’s Downturns," CEDLAS, Working Papers 0121, CEDLAS, Universidad Nacional de La Plata.
  3. Cruces, Guillermo & Gluzmann, Pablo & Lopez-Calva, Luis Felipe, 2010. "Permanent Effects of Economic Crises on Household Welfare: Evidence and Projections from Argentina’s Downturns," MPRA Paper 42949, University Library of Munich, Germany.
  4. Miller, Margaret & Jayasuriya, Ruwan & White, elisabeth & Wodon, Quentin, 2003. "Reaching Health and Education Targets in Argentina: A Provincial Level Analysis," MPRA Paper 15418, University Library of Munich, Germany.

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