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Dynamics and Drivers of Consumption and Multidimensional Poverty: Evidence from Rural Ethiopia

Author

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  • Tilman Brück
  • Sindu Workneh Kebede

Abstract

This study aims to explore poverty measures, its dynamics and determinants using Multidimensional Poverty Index (MPI) and consumption poverty. Our results show that the two measures assign similar poverty status to about 52 percent of households and that both approaches confirm poverty is mainly transient in rural Ethiopia. However, we find that the trend in adjusted head count poverty is different when using these two poverty measures. In terms of determinants of poverty dynamics, we find that household size matters in consumption poverty while we do not find significant effects on multidimensional poverty. Amongst the shocks, drought shock is found to affect consumption poverty but not multidimensional poverty. This implies that short-term shocks are more reflected in consumption poverty while the effect of simultaneous shocks is exhibited significantly on multidimensional poverty. Overall, our result provides empirical evidence on the importance of using both measures as complementary to get a full picture of poverty measure, dynamics and determinants.

Suggested Citation

  • Tilman Brück & Sindu Workneh Kebede, 2013. "Dynamics and Drivers of Consumption and Multidimensional Poverty: Evidence from Rural Ethiopia," Discussion Papers of DIW Berlin 1287, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp1287
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    Cited by:

    1. Aysenur Acar, 2014. "The Dynamics of Multidimensional Poverty in Turkey," Working Papers 014, Bahcesehir University, Betam.
    2. Sumarto, Sudarno & de Silva, Indunil, 2014. "Beyond the Headcount: Examining the Dynamics and Patterns of Multidimensional Poverty in Indonesia," MPRA Paper 60379, University Library of Munich, Germany.

    More about this item

    Keywords

    poverty dynamics; consumption; multidimensional poverty index; rural Ethiopia;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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