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Spatial Comparisons of Poverty and Inequality in Living Standards in Malawi

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  • Mussa, Richard

Abstract

The paper looks at poverty and inequality across areas in Malawi. The focus is on both monetary (consumption) and non monetary (health and education) dimensions of well being. Stochastic poverty dominance tests show that rural areas are poorer in the three dimensions regardless of poverty line chosen. Stochastic inequality dominance tests find that the north and south dominate the centre in health inequality, and there is no dominance between the north and south. With respect to education inequality, dominance is declared for the south-centre pair only. A sub group decomposition analysis finds that the south contributes the most to consumption and education poverty while the centre is the largest contributor to health poverty. We establish that within area inequalities (vertical inequalities) rather than between area inequalities (horizontal inequalities) are the major driver of consumption, health, and education inequality in Malawi.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 23576.

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Date of creation: 26 Jun 2010
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Handle: RePEc:pra:mprapa:23576

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Keywords: Poverty; inequality; stochastic dominance; decomposition; Malawi.;

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  1. David E. Sahn & Stephen D. Younger, 2006. "Changes in inequality and poverty in Latin America: Looking beyond income to health and education," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 215-234, November.
  2. Mukherjee, Sanjukta & Benson, Todd, 2003. "The Determinants of Poverty in Malawi, 1998," World Development, Elsevier, vol. 31(2), pages 339-358, February.
  3. Basu, Kaushik & Foster, James E, 1998. "On Measuring Literacy," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 108(451), pages 1733-49, November.
  4. David E. Sahn & David C. Stifel, 2003. "Urban--Rural Inequality in Living Standards in Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), Centre for the Study of African Economies (CSAE), vol. 12(4), pages 564-597, December.
  5. Davidson, Russell & Duclos, Jean-Yves, 1998. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Cahiers de recherche, Université Laval - Département d'économique 9805, Université Laval - Département d'économique.
  6. David E. Sahn & David C. Stifel, 2002. "Robust Comparisons of Malnutrition in Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 84(3), pages 716-735.
  7. Filmer, Deon & Pritchett, Lant, 1998. "Estimating wealth effects without expenditure data - or tears : with an application to educational enrollments in states of India," Policy Research Working Paper Series 1994, The World Bank.
  8. Jean-Yves Duclos & David Sahn & Stephen D. Younger, 2005. "Robust Multidimensional Spatial Poverty Comparisons in Ghana, Madagascar, and Uganda," Cahiers de recherche 0528, CIRPEE.
  9. Sahn, David E. & Stifel, David C., 2000. "Poverty Comparisons Over Time and Across Countries in Africa," World Development, Elsevier, vol. 28(12), pages 2123-2155, December.
  10. Wagstaff, Adam & Paci, Pierella & van Doorslaer, Eddy, 1991. "On the measurement of inequalities in health," Social Science & Medicine, Elsevier, vol. 33(5), pages 545-557, January.
  11. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, Econometric Society, vol. 52(3), pages 761-66, May.
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Cited by:
  1. Mussa, Richard, 2011. "The poverty-inequality relationship in Malawi: A multidimensional perspective," MPRA Paper 31413, University Library of Munich, Germany.
  2. Mussa, Richard, 2010. "Poverty and Inequality in Standards of Living in Malawi: Does Religious Affiliation Matter?," MPRA Paper 24438, University Library of Munich, Germany.

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