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Tackling the Last Hurdles of Poverty Entrenchment: An Investigation of Poverty Dynamics for Ghana during 2005/06–2016/17

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  • Dang, Hai-Anh H

    (World Bank)

  • Raju, Dhushyanth

    (World Bank)

  • Tanaka, Tomomi
  • Abanokova, Kseniya

    (World Bank)

Abstract

Ghana has managed to consistently keep its poverty rate lower than the regional average over the past 25 years, but this positive trend slowed down recently. We investigate the dynamics of overall, moderate, and extreme poverty in Ghana during 2005/06–2016/17, addressing the lack of actual panel data by constructing synthetic panel data from repeated cross-sectional data. While we find considerable conditional chronic (extreme) poverty rates hovering around 50-60 percent, there is more upward mobility than downward mobility. Poor households are also more likely to have enjoyed stronger consumption expenditure growth. Our findings suggest that factors such as education attainment, female household headship, urban residence, and non-agricultural work are positively correlated with poverty reduction. Compared to all other correlates, education attainment appears to be most effective in pushing households out of poverty and keeping them from falling into poverty.

Suggested Citation

  • Dang, Hai-Anh H & Raju, Dhushyanth & Tanaka, Tomomi & Abanokova, Kseniya, 2024. "Tackling the Last Hurdles of Poverty Entrenchment: An Investigation of Poverty Dynamics for Ghana during 2005/06–2016/17," IZA Discussion Papers 16738, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16738
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    References listed on IDEAS

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    1. Ines A. Ferreira & Vincenzo Salvucci & Finn Tarp, 2021. "Poverty and vulnerability transitions in Myanmar: An analysis using synthetic panels," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 1919-1944, November.
    2. Vincenzo Salvucci & Finn Tarp, 2021. "Poverty and vulnerability in Mozambique: An analysis of dynamics and correlates in light of the Covid‐19 crisis using synthetic panels," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 1895-1918, November.
    3. Hai‐Anh H. Dang & Elena Ianchovichina, 2018. "Welfare Dynamics With Synthetic Panels: The Case of the Arab World In Transition," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(s1), pages 114-144, October.
    4. Hai‐Anh Dang & Dean Jolliffe & Calogero Carletto, 2019. "Data Gaps, Data Incomparability, And Data Imputation: A Review Of Poverty Measurement Methods For Data‐Scarce Environments," Journal of Economic Surveys, Wiley Blackwell, vol. 33(3), pages 757-797, July.
    5. Tseday Jemaneh Mekasha & Finn Tarp, 2021. "Understanding poverty dynamics in Ethiopia: Implications for the likely impact of COVID‐19," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 1838-1868, November.
    6. Hai‐Anh H. Dang, 2021. "To impute or not to impute, and how? A review of poverty‐estimation methods in the absence of consumption data," Development Policy Review, Overseas Development Institute, vol. 39(6), pages 1008-1030, November.
    7. Jehovaness Aikaeli & David Garcés‐Urzainqui & Kenneth Mdadila, 2021. "Understanding poverty dynamics and vulnerability in Tanzania: 2012–2018," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 1869-1894, November.
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    More about this item

    Keywords

    Ghana; household surveys; synthetic panel; pro-poor growth; poverty dynamics; poverty; sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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