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Avoiding chronic and transitory poverty

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  • Haddad, Lawrence James
  • Ahmed, Akhter U.

Abstract

This paper uses a panel data of 347 households in Egypt to measure changes in household consumption between 1997 and 1999 and to identify causes behind the changes. Per capita consumption decreased for the households during this time and, while not dramatic, it occurred at all points along the distribution. Over the two-year period, the number of households that fell into poverty was over twice as large as the number of households that climbed out of poverty. About two-thirds of overall poverty was chronic (average consumption over time was below the poverty line), and almost half of all poor were always poor. We use quantile regression methods to identify the factors that explain total, chronic, and transitory poverty. While our analysis ably documents the extent of transitory poverty, it does not explain well the determinants of this type of poverty. The predominantly chronic nature of poverty in the sample, and our ability to identify associated characteristics, strengthens the case for targeting antipoverty interventions such as food subsidies.

Suggested Citation

  • Haddad, Lawrence James & Ahmed, Akhter U., 2002. "Avoiding chronic and transitory poverty," FCND briefs 133, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:fcndbr:133
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    References listed on IDEAS

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    1. Neil McCulloch & Bob Baulch, 2000. "Simulating the impact of policy upon chronic and transitory poverty in rural Pakistan," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 100-130.
    2. Assaad, Ragu & El-Hamidi, Fatma & Ahmed, Akhter U., 2000. "The determinants of employment status in Egypt," FCND discussion papers 88, International Food Policy Research Institute (IFPRI).
    3. Ravallion, Martin, 1988. "Expected Poverty under Risk-Induced Welfare Variability," Economic Journal, Royal Economic Society, vol. 98(393), pages 1171-1182, December.
    4. repec:pit:wpaper:269 is not listed on IDEAS
    5. Julian May & Michael Carter & Lawrence Haddad & John Maluccio, 2000. "KwaZulu-Natal Income Dynamics Study (KIDS) 1993-98: A longitudinal household database for South African policy analysis," Development Southern Africa, Taylor & Francis Journals, vol. 17(4), pages 567-581.
    6. Adams, Richard H, Jr, 2002. "Nonfarm Income, Inequality, and Land in Rural Egypt," Economic Development and Cultural Change, University of Chicago Press, vol. 50(2), pages 339-363, January.
    7. Bob Baulch & John Hoddinott, 2000. "Economic mobility and poverty dynamics in developing countries," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 1-24.
    8. Stefan Dercon & Pramila Krishnan, 2000. "Vulnerability, seasonality and poverty in Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 25-53.
    9. Jyotsna Jalan & Martin Ravallion, 2000. "Is transient poverty different? Evidence for rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 82-99.
    10. Morduch, Jonathan, 1999. "Between the State and the Market: Can Informal Insurance Patch the Safety Net?," World Bank Research Observer, World Bank Group, vol. 14(2), pages 187-207, August.
    11. Ahmed, Akhter U. & Bouis, Howarth E., 2002. "Weighing what's practical: proxy means tests for targeting food subsidies in Egypt," Food Policy, Elsevier, vol. 27(5-6), pages 519-540.
    12. Datt, Gaurav & Jolliffe, Dean, 1999. "Determinants of poverty in Egypt, 1997," FCND discussion papers 75, International Food Policy Research Institute (IFPRI).
    13. Bouis, Howarth E., 1994. "Agricultural technology and food policy to combat iron deficiency in developing countries," FCND discussion papers 1, International Food Policy Research Institute (IFPRI).
    14. Datt, Gaurav & Jolliffe, Dean, 1999. "Determinants of Poverty in Egypt," FCND briefs 2, International Food Policy Research Institute (IFPRI).
    15. Datt, Gaurav & Jolliffe, Dean & Sharma, Manohar, 1998. "A profile of poverty in Egypt: 1997," FCND discussion papers 49, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Christelle Swanepoel, 2005. "Poverty and Poverty Dynamics in Rural Ethiopia," Working Papers 03/2005, Stellenbosch University, Department of Economics.

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