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Avoiding chronic and transitory poverty

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Author Info
Haddad, Lawrence James
Ahmed, Akhter U.

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Abstract

This paper uses a panel data of 347 households in Egypt to measure changes in household consumption between 1997 and 1999 and to identify causes behind the changes. Per capita consumption decreased for the households during this time and, while not dramatic, it occurred at all points along the distribution. Over the two-year period, the number of households that fell into poverty was over twice as large as the number of households that climbed out of poverty. About two-thirds of overall poverty was chronic (average consumption over time was below the poverty line), and almost half of all poor were always poor. We use quantile regression methods to identify the factors that explain total, chronic, and transitory poverty. While our analysis ably documents the extent of transitory poverty, it does not explain well the determinants of this type of poverty. The predominantly chronic nature of poverty in the sample, and our ability to identify associated characteristics, strengthens the case for targeting antipoverty interventions such as food subsidies.

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Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND discussion papers with number 133.

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Date of creation: 2002
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Handle: RePEc:fpr:fcnddp:133

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Related research
Keywords: Household consumption. ; Poverty Egypt. ; Poverty Research Methodology. ; Poverty alleviation Egypt. ; Subsidies Egypt. ; Food relief Egypt. ; Households Egypt. ;

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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.:
  1. Adams, Richard H., Jr, 1999. "Nonfarm income, inequality, and land in Rural Egypt," Policy Research Working Paper Series 2178, The World Bank. [Downloadable!]
  2. Neil McCulloch & Bob Baulch, 2000. "Simulating the Impact of Policy upon Chronic and Transitory Poverty in Rural Pakistan," Econometrics 0004003, EconWPA. [Downloadable!]
  3. Ahmed, Akhter U. & Bouis, Howarth E., 2002. "Weighing what's practical: proxy means tests for targeting food subsidies in Egypt," Food Policy, Elsevier, vol. 27(5-6), pages 519-540. [Downloadable!] (restricted)
  4. Datt, Gaurav & Jolliffe, Dean, 1999. "Determinants of poverty in Egypt, 1997," FCND discussion papers 75, International Food Policy Research Institute (IFPRI). [Downloadable!]
  5. Datt, Gaurav & Jolliffe, Dean, 1999. "Determinants of Poverty in Egypt," FCND briefs 2, International Food Policy Research Institute (IFPRI). [Downloadable!]
  6. Morduch, Jonathan, 1999. "Between the State and the Market: Can Informal Insurance Patch the Safety Net?," World Bank Research Observer, Oxford University Press, vol. 14(2), pages 187-207, August. [Downloadable!]
  7. Fatma El-Hamidi & Ragui Assaad & Ahmed Akhter, 2000. "The Determinants of Employment Status in Egypt," Working Papers 269, University of Pittsburgh, Department of Economics, revised Sep 2006. [Downloadable!]
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  8. Datt, Gaurav & Jolliffe, Dean & Sharma, Manohar, 1998. "A profile of poverty in Egypt: 1997," FCND discussion papers 49, International Food Policy Research Institute (IFPRI). [Downloadable!]
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Cited by:
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  1. Christelle Swanepoel, 2005. "Poverty and Poverty Dynamics in Rural Ethiopia," Working Papers 03/2005, Stellenbosch University, Department of Economics. [Downloadable!]
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This page was last updated on 2009-11-14.

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