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Seasonality of income and poverty in Bangladesh

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  • Khandker, Shahidur R.

Abstract

Seasonal food deprivation in Bangladesh, locally known as Monga, sometimes rises to the level of famine during the pre-harvest period of aman rice. An analysis of household income and expenditure survey data shows that income and consumption are lower during Monga than in other seasons, and that seasonal income greatly influences seasonal consumption. Econometric estimates reject the hypothesis of perfect consumption smoothing. In the northwestern region of greater Rangpur, rural households suffer disproportionately from Monga. Seasonal differences in poverty across regions are due mainly to differences in household-specific seasonality of income and consumption. Income diversification explains the lower incidence of income seasonality observed in non-Rangpur regions. To contain seasonal hunger in greater Rangpur, public policies should promote rural income diversification together with seasonal migration. A flexible microfinance scheme that provides both production and consumption loans on flexible repayment terms could help diversify income and reduce seasonality of income and poverty.

Suggested Citation

  • Khandker, Shahidur R., 2012. "Seasonality of income and poverty in Bangladesh," Journal of Development Economics, Elsevier, vol. 97(2), pages 244-256.
  • Handle: RePEc:eee:deveco:v:97:y:2012:i:2:p:244-256
    DOI: 10.1016/j.jdeveco.2011.05.001
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    References listed on IDEAS

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    Cited by:

    1. Mazbahul Ahamad & Rezai Khondker & Zahir Ahmed & Fahian Tanin, 2013. "Seasonal food insecurity in Bangladesh: evidences from northern areas," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 18(7), pages 1077-1088, October.
    2. Asadul Islam & Debayan Pakrashi, 2014. "The Microcredit Puzzle: Labour Supply Behaviour of Rural Households in Bangladesh," Monash Economics Working Papers 24-14, Monash University, Department of Economics.
    3. Khandker, Shahidur R. & Khaleque, M. Abdul & Samad, Hussain A., 2011. "Can social safety nets alleviate seasonal deprivation ? evidence from northwest Bangladesh," Policy Research Working Paper Series 5865, The World Bank.
    4. Kitsuki, Akinori & Sakurai, Takeshi, 2016. "Seasonal Hunger: Heterogenous Impacts of Seasonal Price Changes on Seasonal Consumption in Rural Zambia," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235524, Agricultural and Applied Economics Association.
    5. Gilbert, Christopher L. & Christiaensen, Luc & Kaminski, Jonathan, 2017. "Food price seasonality in Africa: Measurement and extent," Food Policy, Elsevier, vol. 67(C), pages 119-132.
    6. Khandker, Shahidur R & Samad, Hussain A, 2016. "Is Seasonal Hunger a Distant Memory in Bangladesh? Revisiting Earlier Evidences," Working Papers 110, JICA Research Institute.
    7. Gharad Bryan & Shyamal Chowdhury & Ahmed Mushfiq Mobarak, 2014. "Underinvestment in a Profitable Technology: The Case of Seasonal Migration in Bangladesh," Econometrica, Econometric Society, vol. 82, pages 1671-1748, September.
    8. Hering, I. & Mußhoff, O., 2016. "Dynamic Incentives in Microfinance – What about the Farmers?," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 0, March.
    9. repec:bla:rdevec:v:21:y:2017:i:3:p:803-828 is not listed on IDEAS
    10. Bishawjit Mallick & Joachim Vogt, 2014. "Population displacement after cyclone and its consequences: empirical evidence from coastal Bangladesh," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 73(2), pages 191-212, September.
    11. Shonchoy, Abu S. & Kurosaki, Takashi, 2014. "Impact of seasonality-adjusted flexible microcredit on repayment and food consumption : experimental evidence from rural Bangladesh," IDE Discussion Papers 460, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    12. Abu S. Shonchoy, 2015. "Seasonal Migration and Microcredit During Agricultural Lean Seasons: Evidence from Northwest Bangladesh," The Developing Economies, Institute of Developing Economies, vol. 53(1), pages 1-26, March.
    13. Khandker, Shahidur R. & Koolwal, Gayatri B. & Haughtonm Jonathan & Jitsuchon, Somchai, 2012. "Household coping and response to government stimulus in an economic crisis : evidence from Thailand," Policy Research Working Paper Series 6016, The World Bank.
    14. Basu, Karna & Wong, Maisy, 2015. "Evaluating seasonal food storage and credit programs in east Indonesia," Journal of Development Economics, Elsevier, vol. 115(C), pages 200-216.
    15. Dassanayake, Wijaya & Luckert, Martin K. & Mohapatra, Sandeep, 2015. "Heterogeneity of household structures and income: Evidence from Zimbabwe and South Africa," Journal of Policy Modeling, Elsevier, vol. 37(4), pages 668-692.

    More about this item

    Keywords

    Bangladesh; Seasonality; Consumption smoothing; Monga; Microfinance; Rangpur;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • P46 - Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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