Arnestein Aassve (Institute of Quantitative Methods, Bocconi University) Abbi Kedir () (Department of Economics, University of Leicester) Habtu Tadesse Weldegebriel (University of Nottingham)
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The paper implements simultaneous random effect models as a means to analyse causality issues related to poverty and fertility in Ethiopia, a country which is plagued by high and persistent poverty and very high fertility rates in rural areas. Using longitudinal data from both urban and rural areas of Ethiopia, we analyse the relationship between childbearing and poverty. In addition to identifying state dependence in poverty and fertility, we investigate to what extent fertility act as a feedback mechanism leading to higher poverty and vice versa. We find that poverty itself has little effect on fertility, whereas there is evidence of state dependence in poverty and important feedback from fertility on future poverty. Not unexpected, we find substantial differences between rural and urban areas.
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Paper provided by Institute for Social and Economic Research in its series ISER working papers with number
2006-30.
Length: 39 Date of creation: Jul 2006 Date of revision: Handle: RePEc:ese:iserwp:2006-30
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