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Poverty, Livelihoods and War Legacies: the Case of Post-War Rural Kosovo

  • Elodie Douarin

    ()

  • Julie Litchfield

    ()

  • Rachel Sabates-Wheeler

    ()

This paper examines the effects of war on livelihood portfolios and welfare outcomes of rural households in Kosovo using the 2000 Kosovo Living Standards Measurement Survey. We question to what extent the legacy of war was experienced through selection into low return livelihood activities or through decreases in welfare generally. We first identify portfolios using a clustering algorithm which groups households pursuing similar combinations of activities. The emerging clusters are comparable to those described in more qualitative studies for Kosovo in the immediate post-conflict period. We then examine the determinants of livelihood portfolio choice and the consequences of these for welfare outcomes, controlling for war legacies and selection into specific portfolios. We find evidence of a relationship between a household’s war experience and their livelihood choices and that war exposure has different impacts on household welfare depending on the livelihood portfolio adopted. We also identify significant selection effects on welfare for three out of four of our livelihood clusters, highlighting the fact that selecting into a specific portfolio raised or lowered welfare above expected levels.

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File URL: http://www.microconflict.eu/publications/RWP37_ED_JL_RSW.pdf
File Function: First version, 2010
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Paper provided by MICROCON - A Micro Level Analysis of Violent Conflict in its series Research Working Papers with number 37.

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Length: 42 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:mcn:rwpapr:37
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  1. Taylor, J. Edward & Wouterse, Fleur, 2006. "Migration and Income Diversification Evidence from Burkina Faso," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25379, International Association of Agricultural Economists.
  2. Demirguc-Kunt, Asli & Klapper, Leora F. & Panos, Georgios A., 2009. "Entrepreneurship in post-conflict transition : the role of informality and access to finance," Policy Research Working Paper Series 4935, The World Bank.
  3. Marcel Fafchamps & Chris Udry & Katherine Czukas, . "Drought and Saving in West Africa: Are Livestock a Buffer Stock?," Working Papers 97013, Stanford University, Department of Economics.
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