Poverty traps and social protection
AbstractThis paper demonstrates that there are potentially large returns to having a social protection policy that stakes out a productive safety net below the vulnerable and keeps them from slipping into a poverty trap. Much of the value of the productive safety net comes from mitigating the ex ante effects of risk and crowding in additional investment. The analysis also explores the implications of different mechanisms of targeting social protection transfers. In the presence of poverty traps, modestly regressive targeting based on critical asset thresholds may have better long-run poverty reduction effects than traditional needs-based targeting.
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Bibliographic InfoPaper provided by The World Bank in its series Social Protection Discussion Papers with number 42752.
Date of creation: 01 Feb 2008
Date of revision:
Safety Nets and Transfers; Rural Poverty Reduction; Population Policies; Debt Markets;
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