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Determinants Of Poverty In Lao Pdr

Lao PDR has been relatively successful in raising incomes and reducing poverty since the early 1990s. However, the gains in terms of poverty reduction are unevenly distributed across regions and population groups. This paper uses a detailed household survey data set to examine the determinants of income and poverty in Lao PDR. The results suggest that household size, dependency ratios, education, and access to agricultural inputs are among the main determinants of per capita consumption. In addition, geography and ethnicity matter. A closer analysis of the role of ethnicity suggests that the higher poverty incidence among minority households is due to their limited access to productive resources rather than lower efficiency in resource use. The paper also proposes some elements for a poverty reduction strategy for Lao PDR.

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Paper provided by The European Institute of Japanese Studies in its series EIJS Working Paper Series with number 223.

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Length: 47 pages
Date of creation: 15 Mar 2006
Date of revision:
Handle: RePEc:hhs:eijswp:0223
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  1. Chiappori, Pierre-Andre & Haddad, Lawrence & Hoddinott, John & Kanbur, Ravi, 1993. "Unitary versus collective models of the household : time to shift theburden of proof?," Policy Research Working Paper Series 1217, The World Bank.
  2. Lipton, Michael & Ravallion, Martin, 1993. "Poverty and policy," Policy Research Working Paper Series 1130, The World Bank.
  3. Jolliffe, Dean, 2002. "Whose Education Matters in the Determination of Household Income? Evidence from a Developing Country," Economic Development and Cultural Change, University of Chicago Press, vol. 50(2), pages 287-312, January.
  4. Deaton, A. & Case, A., 1988. "Analysis Of Household Expenditures," Papers 28, World Bank - Living Standards Measurement.
  5. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-75, June.
  6. Minot, Nicholas & Baulch, Bob, 2002. "The spatial distribution of poverty in Vietnam and the potential for targeting," MTID discussion papers 42, International Food Policy Research Institute (IFPRI).
  7. Lanjouw, Peter & Ravallion, Martin & DEC, 1994. "Poverty and household size," Policy Research Working Paper Series 1332, The World Bank.
  8. 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.
  9. Alderman, Harold, et al, 1995. "Unitary versus Collective Models of the Household: Is It Time to Shift the Burden of Proof?," World Bank Research Observer, World Bank Group, vol. 10(1), pages 1-19, February.
  10. Eastwood, Robert & Lipton, Michael, 1997. "The impact of changes in human fertility on poverty," Discussion Papers in Economics 01/97, Department of Economics, University of Sussex.
  11. Ravallion, Martin, 2001. "Growth, Inequality and Poverty: Looking Beyond Averages," World Development, Elsevier, vol. 29(11), pages 1803-1815, November.
  12. Angus Deaton, 2003. "Measuring Poverty in a Growing World (or Measuring Growth in a Poor World)," NBER Working Papers 9822, National Bureau of Economic Research, Inc.
  13. Schultz, T. Paul, 1988. "Education investments and returns," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 13, pages 543-630 Elsevier.
  14. Angus Deaton & Christina Paxson, 1998. "Economies of Scale, Household Size, and the Demand for Food," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 897-930, October.
  15. Glewwe, P., 1990. "Investigating The Determinants Of Household Welfare In Cote D'Ivoire," Papers 71, World Bank - Living Standards Measurement.
  16. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281.
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