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

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Author Info

  • Duclos, Jean-Yves

    ()
    (Université Laval)

  • Araar, Abdelkrim

    ()
    (Université Laval)

  • Giles, John T.

    ()
    (World Bank)

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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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2078.

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Length: 42 pages
Date of creation: Apr 2006
Date of revision:
Publication status: published in: Journal of Development Economics, 2010, 91 (2), 266-277
Handle: RePEc:iza:izadps:dp2078

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Related research

Keywords: permanent poverty; chronic poverty; transient poverty; poverty dynamics; China;

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References

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Citations

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Cited by:
  1. Hoy, Michael & Zheng, Buhong, 2011. "Measuring lifetime poverty," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2544-2562.
  2. 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.
  3. 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.
  4. Grimm, Michael & Gräb, Johannes, 2007. "Robust Multiperiod Poverty Comparisons," Proceedings of the German Development Economics Conference, Göttingen 2007 8, Verein für Socialpolitik, Research Committee Development Economics.
  5. Aaron Nicholas & Ranjan Ray & Kompal Sinha, 2013. "A Dynamic Multidimensional Measure of Poverty," Development Research Unit Working Paper Series 25-13, Monash University, Department of Economics.
  6. 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).
  7. Jantti, Markus & Jenkins, Stephen P., 2013. "Income mobility," ISER Working Paper Series 2013-23, Institute for Social and Economic Research.
  8. 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.
  9. Echevin, Damien, 2011. "Characterizing poverty and vulnerability in rural Haiti: a multilevel decomposition approach," MPRA Paper 35659, University Library of Munich, Germany.
  10. 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.
  11. 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.
  12. Florent Bresson & Jean-Yves Duclos, 2012. "Intertemporal poverty comparisons," Working Papers halshs-00828049, HAL.
  13. 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.

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