Multidimensional Poverty and Interlocking Poverty Traps: Framework and Application to Ethiopian Household Panel Data
This paper examines the impact and potential interactions of health, education and consumption dimensions of persistent poverty at the household level. Our application is to indictors of assets, undernutrition, and illiteracy drawn from the Ethiopia Rural Household Survey (ERHS) panel data set. We develop a framework for operationalizing the concept of multidimensional traps, involving two or more simultaneous distinct poverty dimensions of persistent poverty; these include a subset of cases in which an interlocking poverty trap is effectively formed as a result of deprivations functioning as complements. We test an implication of the multiple trap framework by comparing structural income dynamics across groups. We find that in the poorest of the three main agro-ecological regions in Ethiopia, those with both chronic undernutrition and illiteracy have the lowest implied equilibrium; those with one of these chronic conditions have intermediate (but still deeply poor) equilibria; and those without either condition have the highest asset equilibrium. Evidence for complementarity of persistence across dimensions of poverty - what we term an interlocking poverty trap - is found in only a limited number cases, however. We present several robustness checks for our results.
|Date of creation:||Jun 2011|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.gwu.edu/~iiep/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stefan Dercon, 2003.
"Growth and Shocks: evidence from rural Ethiopia,"
Economics Series Working Papers
WPS/2003-12, University of Oxford, Department of Economics.
- Antman, Francisca & McKenzie, David J., 2005.
"Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity,"
Policy Research Working Paper Series
3764, The World Bank.
- Francisca Antman & David McKenzie, 2007. "Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity," Journal of Development Studies, Taylor & Francis Journals, vol. 43(6), pages 1057-1083.
- Berry S. M. & Carroll R. J & Ruppert D., 2002. "Bayesian Smoothing and Regression Splines for Measurement Error Problems," Journal of the American Statistical Association, American Statistical Association, vol. 97, pages 160-169, March.
- Christopher Barrett & Paswel Phiri Marenya & John Mcpeak & Bart Minten & Festus Murithi & Willis Oluoch-Kosura & Frank Place & Jean Claude Randrianarisoa & Jhon Rasambainarivo & Justine Wangila, 2006. "Welfare dynamics in rural Kenya and Madagascar," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 248-277.
- Stefan Dercon & Pramila Krishnan, 2000. "Vulnerability, seasonality and poverty in Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 25-53.
- Stefan Dercon & Pramila Krishnan, 1998.
"Changes in poverty in rural Ethiopia 1989-1995: measurement, robustness tests and decomposition,"
CSAE Working Paper Series
1998-07, Centre for the Study of African Economies, University of Oxford.
- Stefan Dercon & Pramila Krishnan, 1998. "Changes in poverty in rural Ethiopia 1989-1995: measurement, robustness tests and decomposition," Economics Series Working Papers WPS/1998-07, University of Oxford, Department of Economics.
- Stefan Dercon & Pramila Krishnan, 1998. "Changes in Poverty in Rural Ethiopia 1989-1995: Measurement, Robustness Tests and Decomposition," Center for Economic Studies - Discussion papers ces9819, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
- Jalan, Jyotsna & Ravallion, Martin, 2002.
"Household Income Dynamics in Rural China,"
Working Paper Series
UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Dasgupta, Partha, 1997. "Nutritional status, the capacity for work, and poverty traps," Journal of Econometrics, Elsevier, vol. 77(1), pages 5-37, March.
- Pramila Krishnan & Stefan Dercon, 1997.
"In sickness and in health ... risk-sharing within households in rural Ethiopia,"
CSAE Working Paper Series
1997-12, Centre for the Study of African Economies, University of Oxford.
- Stefan Dercon & Pramila Krishnan, 2000. "In Sickness and in Health: Risk Sharing within Households in Rural Ethiopia," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 688-727, August.
- Stefan Dercon & Pramila Krishnan, 1997. "In sickness and in health... risk-sharing within households in rural Ethiopia," Economics Series Working Papers WPS/1997-12, University of Oxford, Department of Economics.
- Alkire, Sabina & Foster, James, 2011.
"Counting and multidimensional poverty measurement,"
Journal of Public Economics,
Elsevier, vol. 95(7), pages 476-487.
- Frederic Zimmerman & MICHAEL R. CARTER, .
"Asset Smoothing, Consumption Smoothing and the Reproduction for Inequality under Risk and Subsistence Constraints,"
Wisconsin-Madison Agricultural and Applied Economics Staff Papers
402, Wisconsin-Madison Agricultural and Applied Economics Department.
- Zimmerman, Frederick J. & Carter, Michael R., 2003. "Asset smoothing, consumption smoothing and the reproduction of inequality under risk and subsistence constraints," Journal of Development Economics, Elsevier, vol. 71(2), pages 233-260, August.
- Emerson, Patrick M & Souza, Andre Portela, 2003.
"Is There a Child Labor Trap? Intergenerational Persistence of Child Labor in Brazil,"
Economic Development and Cultural Change,
University of Chicago Press, vol. 51(2), pages 375-98, January.
- Emerson, Patrick M & Souza, Andre Portela, 2003. "Is There a Child Labor Trap? Intergenerational Persistence of Child Labor in Brazil," Economic Development and Cultural Change, University of Chicago Press, vol. 51(2), pages 375-98, January.
- Patrick M. Emerson & Andre Portela Souza, 2002. "Is There a Child Labor Trap? Inter-Generational Persistence of Child Labor in Brazil," Vanderbilt University Department of Economics Working Papers 0214, Vanderbilt University Department of Economics.
- Mayer-Foulkes, David, 2008. "The Human Development Trap in Mexico," World Development, Elsevier, vol. 36(5), pages 775-796, May.
- Lokshin Michael & Ravallion Martin, 2004. "Household Income Dynamics in Two Transition Economies," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 8(3), pages 1-33, September.
- Oded Galor & Joseph Zeira, 2013.
"Income Distribution and Macroeconomics,"
2013-12, Brown University, Department of Economics.
- Jha, Raghbendra & Gaiha, Raghav & Sharma, Anurag, 2009. "Calorie and Micronutrient Deprivation and Poverty Nutrition Traps in Rural India," World Development, Elsevier, vol. 37(5), pages 982-991, May.
- Lybbert, Travis J. & Barrett, Christopher B. & Desta, Solomon & Coppock, D. Layne, 2002.
"Stochastic Wealth Dynamics And Risk Management Among A Poor Population,"
14736, Cornell University, Department of Applied Economics and Management.
- Travis J. Lybbert & Christopher B. Barrett & Solomon Desta & D. Layne Coppock, 2004. "Stochastic wealth dynamics and risk management among a poor population," Economic Journal, Royal Economic Society, vol. 114(498), pages 750-777, October.
- Michelle Adato & Michael Carter & Julian May, 2006. "Exploring poverty traps and social exclusion in South Africa using qualitative and quantitative data," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 226-247.
- Suzanna Vidmar & John Carlin & Kylie Hesketh & Tim Cole, 2004. "Standardizing anthropometric measures in children and adolescents with new functions for egen," Stata Journal, StataCorp LP, vol. 4(1), pages 50-55, March.
- Jyotsna Jalan & Martin Ravallion, 1998. "Geographic Poverty Traps?," Boston University - Institute for Economic Development 86, Boston University, Institute for Economic Development.
- Alemayehu Geda & Abebe Shimeles & John Weeks, 2009. "Growth, poverty and inequality in Ethiopia: Which way for pro-poor growth?," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(7), pages 947-970.
- Loury, Glenn C, 1981. "Intergenerational Transfers and the Distribution of Earnings," Econometrica, Econometric Society, vol. 49(4), pages 843-67, June.
- Smith, Stephen C., 2002. "Village Banking and Maternal and Child Health: Evidence from Ecuador and Honduras," World Development, Elsevier, vol. 30(4), pages 707-723, April.
- Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
When requesting a correction, please mention this item's handle: RePEc:gwi:wpaper:2011-04. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kyle Renner)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.