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Poverty Dynamics in Peru 2001-2003: A Probit Model Analysis

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  • Gambetta Podesta, Renzo
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    Abstract

    The objectives of this paper consist on two main parts:a descriptive one and an explanatory one. For the first part I used transition matrices to identify people who entered and left the poverty line in Peru between 2001-2003.Probabilistic regressions models were used to explain the main determinants of poverty dynamics. Changes in house members, decrease of active members,changes in years of schooling and changes in the access of essential public services play an important role to explain the dynamics poverty in Peru in those years. Otherwise,just only 28% of the households were never poor,15% were poor for once and 38% were always poor. This document also tries to explain that poverty in Peru can not be treated like a static process and the public policies never be focus in established profiles of poverty in a unique period of time, they have to be in constant checking.

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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3723.

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    Date of creation: 15 Mar 2007
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    Handle: RePEc:pra:mprapa:3723

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    Keywords: Poverty Dynamics; Transition Matrix; Regression Probit Model;

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    1. Ann Huff Stevens, 1995. "Climbing Out of Poverty, Falling Back In: Measuring the Persistence of Poverty over Multiple Spells," NBER Working Papers 5390, National Bureau of Economic Research, Inc.
    2. Jorge A. Paz, 2002. "Una introducción a la dinámica de la pobreza en la Argentina," CEMA Working Papers: Serie Documentos de Trabajo. 226, Universidad del CEMA.
    3. Mary Jo Bane & David T. Ellwood, 1983. "Slipping into and out of Poverty: The Dynamics of Spells," NBER Working Papers 1199, National Bureau of Economic Research, Inc.
    4. Javier Herrera, 2001. "Poverty dynamics in Peru, 1997-1999," Working Papers DT/2001/09, DIAL (Développement, Institutions et Mondialisation).
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