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Chronic and Transient Poverty: Measurement and Estimation, with Evidence from China

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Author Info

  • Jean-Yves Duclos

    ()
    (Département d’économique and CIRPÉE, Université Laval)

  • Abdelkrim Araaryand

    ()
    (CIRPÉE, Université Laval)

  • John Giles

    ()
    (Department of Economics, Michigan State University,)

Abstract

The paper contributes to the measurement of poverty and vulnerability in three ways. First, we propose a new approach to separating poverty into chronic and transient components. Second, we provide corrections for the statistical biases introduced when using a small number of periods to estimate the importance of vulnerability and transient poverty. Third, we apply these tools to the measurement of chronic and transient poverty in China using a rich panel data set that extends over approximately 17 years. We find that alternative measurement techniques yield significantly different estimates of the relative importance of chronic and transient poverty, and that precision of estimates is enhanced with simple statistical corrections.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2006-35.pdf
File Function: First version, 2006
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Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 35.

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Length: 41 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2006-35

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Web page: http://www.ecineq.org
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Keywords: Poverty dynamics; Transient poverty; Chronic poverty; Permanent poverty; China.;

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References

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Citations

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Cited by:
  1. Markus Jantti & Stephen P. Jenkins, 2014. "Income Mobility," Working Papers 319, ECINEQ, Society for the Study of Economic Inequality.
  2. Nayoung Lee & Geert Ridder & John Strauss, 2010. "Estimation of Poverty Transition Matrices with Noisy Data," Textos para discussão 576, Department of Economics PUC-Rio (Brazil).
  3. Glauben, Thomas & Herzfeld, Thomas & Rozelle, Scott & Wang, Xiaobing, 2012. "Persistent Poverty in Rural China: Where, Why, and How to Escape?," World Development, Elsevier, vol. 40(4), pages 784-795.
  4. Giovanni Marano & Gianni Betti & Francesca Gagliardi, 2014. "Latent class Markov models for addressing measurement problems in poverty dynamics," Department of Economics University of Siena 695, Department of Economics, University of Siena.
  5. Katsushi S. Imai & Jing You, 2013. "Poverty Dynamics of Households in Rural China," Discussion Paper Series DP2013-16, Research Institute for Economics & Business Administration, Kobe University, revised Jun 2013.
  6. Gräb, Johannes & Grimm, Michael, 2006. "Robust Multiperiod Poverty Comparisons," Economics Papers from University Paris Dauphine 123456789/4330, Paris Dauphine University.
  7. Aaron Nicholas & Ranjan Ray & Kompal Sinha, 2013. "Duration and Multidimensionality in Poverty Measurement," Economics Series 2013_9, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  8. Katsushi Imai & Jin You, 2012. "Poverty Dynamics of Households in Rural China: Identifying Multiple Pathways for Poverty Transition," The School of Economics Discussion Paper Series 1203, Economics, The University of Manchester.
  9. repec:ese:iserwp:2013-23 is not listed on IDEAS
  10. Giles, John & Wang, Dewen & Zhao, Changbao, 2010. "Can China's rural elderly count on support from adult children ? implications of rural-to-urban migration," Policy Research Working Paper Series 5510, The World Bank.
  11. Michael Hoy & Buhong Zheng, 2008. "Measuring Lifetime Poverty," Working Papers 0814, University of Guelph, Department of Economics and Finance.
  12. Bayudan-Dacuycuy, Connie & Lim, Joseph Anthony, 2013. "Family size, household shocks and chronic and transient poverty in the Philippines," Journal of Asian Economics, Elsevier, vol. 29(C), pages 101-112.
  13. Florent Bresson & Jean-Yves Duclos, 2012. "Intertemporal poverty comparisons," Working Papers halshs-00828049, HAL.
  14. Echevin, Damien, 2011. "Characterizing poverty and vulnerability in rural Haiti: a multilevel decomposition approach," MPRA Paper 35659, University Library of Munich, Germany.

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