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

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