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Working poverty, social exclusion and destitution: An empirical study


  • Gangopadhyay, Partha
  • Shankar, Sriram
  • Rahman, Mustafa A.


In economics destitution is traditionally interpreted as a product of labour market exclusion. Our work departs from the dominant models of poverty by considering destitution among a specific category of workers known as the working poor. Low wages and job insecurity in the informal sector in developing economies can create and perpetuate destitution among the working poor. Our precise contributions are three-fold: first, in order to understand causes and consequences of destitution, we develop an index of destitution from social exclusion of the working poor. Secondly, we test the predictions of this index by using micro-data collected from a sample survey in Bangladesh. Thirdly, from the micro-data we not only offer insights into the sources of destitution but also explain the factors that prevent the working poor from falling into the traps of destitution.

Suggested Citation

  • Gangopadhyay, Partha & Shankar, Sriram & Rahman, Mustafa A., 2014. "Working poverty, social exclusion and destitution: An empirical study," Economic Modelling, Elsevier, vol. 37(C), pages 241-250.
  • Handle: RePEc:eee:ecmode:v:37:y:2014:i:c:p:241-250
    DOI: 10.1016/j.econmod.2013.11.001

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    References listed on IDEAS

    1. Khandker, Shahidur R., 2009. "Poverty and income seasonality in Bangladesh," Policy Research Working Paper Series 4923, The World Bank.
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    More about this item


    Destitution among working poor; Indicators of destitution; MIMIC model of destitution;

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development


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