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Poverty Persistence and Intra-Household Heterogeneity in Occupations: Evidence from Urban Ethiopia

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  • Alem, Yonas

    () (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

Previous studies of poverty in developing countries have to a great extent focused on the characteristics of the household head and used these as proxies for the underlying ability of the household to generate income. This paper uses five rounds of panel data to investigate the persistence of poverty in urban Ethiopia with a particular focus on the role of intra-household heterogeneity in occupations. Dynamic probit and system GMM regression results suggest that international remittances and labor market status of non-head household members are important determinants of households' poverty status. Results also show that controlling for these variables and the initial conditions problem encountered in non-linear dynamic probit models reduces the magnitude of estimated poverty persistence significantly for urban Ethiopia. These findings have important implications for identifying the poor and formulating effective poverty reduction and targeting strategies.

Suggested Citation

  • Alem, Yonas, 2013. "Poverty Persistence and Intra-Household Heterogeneity in Occupations: Evidence from Urban Ethiopia," Working Papers in Economics 580, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0580
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    File URL: http://hdl.handle.net/2077/34643
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Alem, Yonas & Köhlin, Gunnar & Stage, Jesper, 2014. "The Persistence of Subjective Poverty in Urban Ethiopia," World Development, Elsevier, vol. 56(C), pages 51-61.
    2. Alem, Yonas & Andersson, Lisa, 2015. "International Remittances and Private Inter-household Transfers: Exploring the Links," Working Papers in Economics 631, University of Gothenburg, Department of Economics.
    3. Yonas Alem & Gunnar Köhlin, 2014. "The Impact of Food Price Inflation on Subjective Well-being: Evidence From Urban Ethiopia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, pages 853-868.
    4. Alem, Yonas & Hassen, Sied & Kohlin, Gunnar, 2013. "The Dynamics of Electric Cookstove Adoption: Panel Data Evidence from Ethiopia," Discussion Papers dp-13-03-efd, Resources For the Future.
    5. Alem, Yonas & Beyene, Abebe D. & Köhlin, Gunnar & Mekonnen, Alemu, 2015. "Modelling Household Cooking Fuel Choice: a Panel Multinomial Logit Approach," Working Papers in Economics 632, University of Gothenburg, Department of Economics.
    6. Alem, Yonas & Köhlin, Gunnar, 2012. "Life Satisfaction in Urban Ethiopia: Trends and determinants," Working Papers in Economics 548, University of Gothenburg, Department of Economics.

    More about this item

    Keywords

    urban Ethiopia; poverty persistence; dynamic probit; system GMM; labor market status;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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