Do poverty traps exist ?
AbstractThis paper reviews the empirical evidence on the existence of poverty traps, understood as self-reinforcing mechanisms through which poor individuals or countries remain poor. Poverty traps have captured the interest of many development policy makers, because poverty traps provide a theoretically coherent explanation for persistent poverty. They also suggest that temporary policy interventions may have long-term effects on poverty. However, a review of the reduced-form empirical evidence suggests that truly stagnant incomes of the sort predicted by standard models of poverty traps are in fact quite rare. Moreover, the empirical evidence regarding several canonical mechanisms underlying models of poverty traps is mixed.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 6835.
Date of creation: 01 Apr 2014
Date of revision:
Rural Poverty Reduction; Achieving Shared Growth; Economic Theory&Research; Debt Markets; Poverty Reduction Strategies;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-04-11 (All new papers)
- NEP-DEV-2014-04-11 (Development)
- NEP-GER-2014-04-11 (German Papers)
- NEP-GRO-2014-04-11 (Economic Growth)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- McKenzie, David & Gibson, John & Stillman, Steven, 2006.
"How Important Is Selection? Experimental vs. Non-Experimental Measures of the Income Gains from Migration,"
IZA Discussion Papers
2087, Institute for the Study of Labor (IZA).
- David McKenzie & John Gibson & Steven Stillman, 2010. "How Important Is Selection? Experimental vs. Non-Experimental Measures of the Income Gains from Migration," Journal of the European Economic Association, MIT Press, vol. 8(4), pages 913-945, 06.
- David McKenzie & Steven Stillman & John Gibson, 2010. "How Important is Selection? Experimental VS. Non‐Experimental Measures of the Income Gains from Migration," Journal of the European Economic Association, European Economic Association, vol. 8(4), pages 913-945, 06.
- Ben-David,D., 1995.
"Convergence Clubs and Subsistence Economies,"
43-95, Tel Aviv.
- Banerjee, Abhijit & Duflo, Esther & Glennerster, Rachel & Kinnan, Cynthia, 2013.
"The miracle of microfinance? Evidence from a randomized evaluation,"
CEPR Discussion Papers
9437, C.E.P.R. Discussion Papers.
- Esther Duflo & Abhijit Banerjee & Rachel Glennerster & Cynthia G. Kinnan, 2013. "The Miracle of Microfinance? Evidence from a Randomized Evaluation," NBER Working Papers 18950, National Bureau of Economic Research, Inc.
- Subramanian, S. & Deaton, A., 1994.
"The Demand for Food and Calories,"
175, Princeton, Woodrow Wilson School - Development Studies.
- Kraay, Aart & Raddatz, Claudio, 2007.
"Poverty traps, aid, and growth,"
Journal of Development Economics,
Elsevier, vol. 82(2), pages 315-347, March.
- John Strauss & Duncan Thomas, 1998.
"Health, Nutrition, and Economic Development,"
Journal of Economic Literature,
American Economic Association, vol. 36(2), pages 766-817, June.
- Bryan Graham & Jonathan Temple, 2006.
"Rich Nations, Poor Nations: How Much Can Multiple Equilibria Explain?,"
Journal of Economic Growth,
Springer, vol. 11(1), pages 5-41, 03.
- Graham, Bryan S. & Jonathan Temple, 2002. "Rich Nations, Poor Nations: How much can multiple equilibria explain?," Royal Economic Society Annual Conference 2002 91, Royal Economic Society.
- Bryan S. Graham & Jonathan R. W. Temple, 2004. "Rich nations, poor nations: how much can multiple equilibria explain?," The Institute for International Integration Studies Discussion Paper Series iiisdp017, IIIS.
- Graham, Bryan S & Temple, Jonathan, 2001. "Rich Nations, Poor Nations: How Much can Multiple Equilibria Explain?," CEPR Discussion Papers 3046, C.E.P.R. Discussion Papers.
- Acemoglu, Daron & Zilibotti, Fabrizio, 1997.
"Was Prometheus Unbound by Chance? Risk, Diversification, and Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 105(4), pages 709-51, August.
- Acemoglu, Daron & Zilibotti, Fabrizio, 1996. "Was Prometheus Unbound by Chance? Risk, Diversification and Growth," CEPR Discussion Papers 1426, C.E.P.R. Discussion Papers.
- Daron Acemoglu & Fabrizio Zilibotti, 1994. "Was Prometheus unbound by chance? Risk, diversification and growth," Economics Working Papers 98, Department of Economics and Business, Universitat Pompeu Fabra.
- Quah, Danny T, 1997. " Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," Journal of Economic Growth, Springer, vol. 2(1), pages 27-59, March.
- William Easterly, 2006. "Reliving the 1950s: the big push, poverty traps, and takeoffs in economic development," Journal of Economic Growth, Springer, vol. 11(4), pages 289-318, December.
- David N. Weil & Oded Galor, 2000. "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond," American Economic Review, American Economic Association, vol. 90(4), pages 806-828, September.
- Banerjee, Abhijit & Mullainathan, Sendhil, 2010.
"The Shape of Temptation: Implications for the Economic Lives of the Poor,"
CEPR Discussion Papers
7828, C.E.P.R. Discussion Papers.
- Abhijit Banerjee & Sendhil Mullainathan, 2010. "The Shape of Temptation: Implications for the Economic Lives of the Poor," Working Papers id:2484, eSocialSciences.
- Abhijit Banerjee & Sendhil Mullainathan, 2010. "The Shape of Temptation: Implications for the Economic Lives of the Poor," NBER Working Papers 15973, National Bureau of Economic Research, Inc.
- Francisca Antman & David McKenzie, 2007.
"Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity,"
Journal of Development Studies,
Taylor & Francis Journals, vol. 43(6), pages 1057-1083.
- Antman, Francisca & McKenzie, David J., 2005. "Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity," Policy Research Working Paper Series 3764, The World Bank.
- Santos, Paulo & Barrett, Christopher B., 2011. "Persistent poverty and informal credit," Journal of Development Economics, Elsevier, vol. 96(2), pages 337-347, November.
- Travis J. Lybbert & Christopher B. Barrett & Solomon Desta & D. Layne Coppock, 2004.
"Stochastic wealth dynamics and risk management among a poor population,"
Royal Economic Society, vol. 114(498), pages 750-777, October.
- Lybbert, Travis J. & Barrett, Christopher B. & Desta, Solomon & Coppock, D. Layne, 2002. "Stochastic Wealth Dynamics And Risk Management Among A Poor Population," Working Papers 14736, Cornell University, Department of Applied Economics and Management.
- Michelle Adato & Michael Carter & Julian May, 2006. "Exploring poverty traps and social exclusion in South Africa using qualitative and quantitative data," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 226-247.
- Caucutt Elizabeth M & Kumar Krishna B., 2008. "Africa: Is Aid an Answer?," The B.E. Journal of Macroeconomics, De Gruyter, vol. 8(1), pages 1-48, December.
- Robert Lucas & Sari Kerr, 2013. "Intergenerational income immobility in Finland: contrasting roles for parental earnings and family income," Journal of Population Economics, Springer, vol. 26(3), pages 1057-1094, July.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.