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Vulnerability to poverty in Papua New Guinea

Author

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  • Raghbendra Jha

    ()

  • Tu Dang

Abstract

In the extant literature either income or consumption expenditures as measured over short periods of time has been regarded as proxies for the material well-being of households. However, economists have long recognized that a household's sense of well-being depends not just on its average income or expenditures, but also on the risks it faces. Hence vulnerability is a more satisfactory measure of welfare. In this study we measure the extent of vulnerability as expected poverty and examine the importance of its determinants on the basis of an analysis of household survey data for Papua New Guinea (PNG). We find that in PNG, vulnerability and poverty are largely rural phenomena. Moreover, the distribution of vulnerability across different segments of the population can differ significantly from the distribution of poverty. In addition, there is a sizable fraction of the population of PNG who were observed to be non-poor but are estimated to be vulnerable to poverty. Thus, poverty reduction strategies in PNG need to incorporate not just alleviation efforts but also prevention.

Suggested Citation

  • Raghbendra Jha & Tu Dang, 2008. "Vulnerability to poverty in Papua New Guinea," Departmental Working Papers 2008-08, The Australian National University, Arndt-Corden Department of Economics.
  • Handle: RePEc:pas:papers:2008-08
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    File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2008/wp_econ_2008_08.pdf
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    References listed on IDEAS

    as
    1. Paul Mosley & Robert Holzmann & Steen Jorgensen, 1999. "Social protection as social risk management: conceptual underpinnings for the social protection sector strategy paper," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(7), pages 1005-1027.
    2. John Gibson, 2000. "The Papua New Guinea Household Survey," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 33(4), pages 377-380.
    3. Robert Holzmann & Steen Jørgensen, 2001. "Social Risk Management: A New Conceptual Framework for Social Protection, and Beyond," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 8(4), pages 529-556, August.
    4. Christiaensen, Luc J.M. & Boisvert, Richard N., 2000. "On Measuring Household Food Vulnerability: Case Evidence from Northern Mali," Working Papers 127676, Cornell University, Department of Applied Economics and Management.
    5. Ligon, Ethan & Schechter, Laura, 2004. "Evaluating different approaches to estimating vulnerability," Social Protection and Labor Policy and Technical Notes 30159, The World Bank.
    6. Pasquale Scaramozzino, 2006. "Measuring Vulnerability to Food Insecurity," Working Papers 06-12, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Katja Landau & Stephan Klasen & Walter Zucchini, 2012. "Measuring Vulnerability to Poverty Using Long-Term Panel Data," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 118, Courant Research Centre PEG.
    2. Jamal, Haroon, 2009. "Assessing Vulnerability to Poverty:Evidence from Pakistan," MPRA Paper 40228, University Library of Munich, Germany.

    More about this item

    Keywords

    Poverty; Vulnerability; Cross-section data; PNG;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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