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“The Poor Stay Poor”: Household Asset Poverty Traps in Rural Semi-Arid India

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  • Naschold, Felix

Abstract

Although identifying household-level poverty dynamics would have important implications for poverty reduction policies empirical evidence is still scant. This paper employs a novel semiparametric panel data estimator that combines the advantages of estimation methods in the existing literature and applies it to a uniquely long panel data set to examine poverty dynamics in three villages in rural semi-arid India. Structural immobility is pervasive. The currently poor are likely to remain poor, suggesting a structural poverty trap. While all households face static asset holdings, higher castes, larger landholders, and more educated households are significantly less likely to be poor.

Suggested Citation

  • Naschold, Felix, 2012. "“The Poor Stay Poor”: Household Asset Poverty Traps in Rural Semi-Arid India," World Development, Elsevier, vol. 40(10), pages 2033-2043.
  • Handle: RePEc:eee:wdevel:v:40:y:2012:i:10:p:2033-2043
    DOI: 10.1016/j.worlddev.2012.05.006
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    1. repec:nbr:nberch:13828 is not listed on IDEAS
    2. Charlery, Lindy & Walelign, Solomon Zena, 2015. "Assessing environmental dependence using asset and income measures: Evidence from Nepal," Ecological Economics, Elsevier, vol. 118(C), pages 40-48.
    3. Thorat, Amit & Vanneman, Reeve & Desai, Sonalde & Dubey, Amaresh, 2017. "Escaping and Falling into Poverty in India Today," World Development, Elsevier, vol. 93(C), pages 413-426.
    4. You, Jing, 2014. "Risk, under-investment in agricultural assets and dynamic asset poverty in rural China," China Economic Review, Elsevier, vol. 29(C), pages 27-45.
    5. Solomon Zena Walelign & Mariève Pouliot & Helle Overgaard Larsen & Carsten Smith-Hall, 2015. "A novel approach to dynamic livelihood clustering: Empirical evidence from Nepal," IFRO Working Paper 2015/09, University of Copenhagen, Department of Food and Resource Economics.
    6. Mburu, Samuel & Kaiser, Micha & Sousa-Poza, Alfonso, 2017. "Livestock asset dynamics among pastoralists in Northern Kenya," Hohenheim Discussion Papers in Business, Economics and Social Sciences 25-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    7. repec:eee:wdevel:v:97:y:2017:i:c:p:266-278 is not listed on IDEAS
    8. Swati Dutta, 2015. "Identifying Single or Multiple Poverty Trap: An Application to Indian Household Panel Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(1), pages 157-179, January.
    9. repec:eee:wdevel:v:102:y:2018:i:c:p:262-274 is not listed on IDEAS

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