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Argentinas Crises and the Poor, 1995-2002

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  • Guillermo Cruces
  • Quentin Wodon

Abstract

This paper documents the impact of Argentina's recent economic crises on different aspects of poverty, with a special focus on the economic collapse of 2002. We discuss the methodology of poverty measurement in Argentina and we use a simple rule to compensate for the lack of regional poverty figures until 2001, providing consistent series of urban poverty estimates at the national and regional levels. We then present series of short term dynamics of poverty, decomposing the changes in every period of time with panel data. Finally, we analyse the determinants of poverty, with a focus on accounting for observed differences in income (and thereby poverty) between October 2001 and May 2002. Among other conclusions, we find in our decomposition analysis that households without the means to diversify their income sources suffered more than others from the crisis of 2002.

Suggested Citation

  • Guillermo Cruces & Quentin Wodon, 2003. "Argentinas Crises and the Poor, 1995-2002," STICERD - Distributional Analysis Research Programme Papers 71, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  • Handle: RePEc:cep:stidar:71
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    File URL: http://sticerd.lse.ac.uk/dps/darp/darp71.pdf
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    References listed on IDEAS

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    1. Leonardo Gasparini & Walter Sosa Escudero, 1999. "Bienestar y distribución del ingreso en Argentina, 1980 – 1998," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0(3), pages 183-217.
    2. Guillermo Cruces & Quentin Wodon, 2007. "Risk-adjusted poverty in Argentina: measurement and determinants," Journal of Development Studies, Taylor & Francis Journals, vol. 43(7), pages 1189-1214.
    3. Galiani, Sebastian & Hopenhayn, Hugo A., 2003. "Duration and risk of unemployment in Argentina," Journal of Development Economics, Elsevier, vol. 71(1), pages 199-212, June.
    4. Cowell, Frank & Mercader-Prats, Magda, 1999. "Equivalence scales and inequality," LSE Research Online Documents on Economics 2190, London School of Economics and Political Science, LSE Library.
    5. Lanjouw, Peter & Ravallion, Martin, 1995. "Poverty and Household Size," Economic Journal, Royal Economic Society, vol. 105(433), pages 1415-1434, November.
    6. Ravallion, M., 1998. "Poverty Lines in Theory and Practice," Papers 133, World Bank - Living Standards Measurement.
    7. Paul Makdissi & Quentin Wodon, 2003. "Risk-adjusted measures of wage inequality and safety nets," Economics Bulletin, AccessEcon, vol. 9(1), pages 1-10.
    8. repec:ebl:ecbull:v:9:y:2003:i:1:p:1-10 is not listed on IDEAS
    9. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    10. Frank A Cowell & Magda Mercader-Prats, 1997. "Equivalence of Scales and Inequality (published in Income Inequality Measurement:From Theory to Practice, J Silber (ed), Dewenter: Kluver (1999)," STICERD - Distributional Analysis Research Programme Papers 27, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    11. Jorge A. Paz, 2002. "Una introducción a la dinámica de la pobreza en la Argentina," CEMA Working Papers: Serie Documentos de Trabajo. 226, Universidad del CEMA.
    12. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    13. Ravallion, Martin & Wodon, Quentin, 1997. "Poor areas, or only poor people?," Policy Research Working Paper Series 1798, The World Bank.
    14. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, vol. 102(414), pages 1067-1082, September.
    15. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
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    Citations

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    Cited by:

    1. Ana Corbacho & Mercedes Garcia-Escribano & Gabriela Inchauste, 2007. "Argentina: Macroeconomic Crisis and Household Vulnerability ," Review of Development Economics, Wiley Blackwell, vol. 11(1), pages 92-106, February.
    2. Guillermo Cruces & Quentin T. Wodon, 2003. "Transient and chronic poverty in turbulent times: Argentina 1995-2002," Economics Bulletin, AccessEcon, vol. 9(3), pages 1-12.
    3. Guillermo Cruces & Quentin Wodon, 2007. "Risk-adjusted poverty in Argentina: measurement and determinants," Journal of Development Studies, Taylor & Francis Journals, vol. 43(7), pages 1189-1214.
    4. Cruces, Guillermo & Gluzmann, Pablo & Lopez-Calva, Luis Felipe, 2010. "Permanent Effects of Economic Crises on Household Welfare: Evidence and Projections from Argentina’s Downturns," MPRA Paper 42949, University Library of Munich, Germany.
    5. Cruces, Guillermo & Glüzmann, Pablo & Calva, Luis Felipe López, 2012. "Economic Crises, Maternal and Infant Mortality, Low Birth Weight and Enrollment Rates: Evidence from Argentina’s Downturns," World Development, Elsevier, vol. 40(2), pages 303-314.
    6. Miller, Margaret & Jayasuriya, Ruwan & White, elisabeth & Wodon, Quentin, 2003. "Reaching Health and Education Targets in Argentina: A Provincial Level Analysis," MPRA Paper 15418, University Library of Munich, Germany.

    More about this item

    Keywords

    Poverty; unemployment; Argentina.;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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