Relating Severe Poverty and Chronic Poverty
The severely poor are very poor since their consumption is far below the absolute poverty line, and the chronically poor are very poor since their consumption persists for long periods below the absolute poverty line. A combination of chronic poverty and severe poverty (CSP) must represent the very worst instance of poverty. Yet the exercise in this paper of asking simple questions about CSP shows large research gaps. Quantified statements on CSP at the country level can be made for just 14 countries, and at the household level in just six countries. This data suggests a positive correlation between severe poverty and chronic poverty, both at the country level and the household level. Understanding the CSP relationship – whether it is strong, where it arises, what causes it – may improve our explanation of observed cross-country variation in the elasticity between macroeconomic growth and poverty reduction, and why within countries, some households take better advantage of opportunities afforded by macroeconomic growth. Some limited data suggests similarity in socioeconomic characteristics of the severe poor and the chronic poor in terms of location, household size, gender, education and economic sector of work. Of concern is that microlongitudinal datasets drop large proportions of their base year samples, and how this affects our understanding of CSP is not well evaluated. On causal mechanisms, evidence suggests that CSP may be caused by parental CSP (i.e. an intergenerational CSP cycle) and in households not previously poor, CSP may be caused by a morbidity cycle.
|Date of creation:||Jun 2003|
|Date of revision:|
|Contact details of provider:|| Postal: Campus Bellaterra. 08193 Bellaterra.|
Phone: 34-93 581 1680
Fax: 34-93 581 2292
Web page: http://www.uab.cat/departament/economia-aplicada/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John Gibson & Jikun Huang & Scott Rozelle, 2003.
"Improving Estimates of Inequality and Poverty from Urban China's Household Income and Expenditure Survey,"
Review of Income and Wealth,
International Association for Research in Income and Wealth, vol. 49(1), pages 53-68, 03.
- Gibson, John & Huang, Jikun & Rozelle, Scott, 2001. "Improving Estimates Of Inequality And Poverty From Urban China'S Household Income And Expenditure Survey," Working Papers 11989, University of California, Davis, Department of Agricultural and Resource Economics.
- John Gibson & Jikun Huang & Scott Rozelle, 2002. "Improving Estimates of Inequality and Poverty From Urban China’s Household Income and Expenditure Survey," Working Papers in Economics 02/01, University of Waikato, Department of Economics.
- Jalan, Jyotsna & Ravallion, Martin, 1998. "Transient Poverty in Postreform Rural China," Journal of Comparative Economics, Elsevier, vol. 26(2), pages 338-357, June.
- Swaminathan, Madhura, 1991. "Measuring Mobility in Wealth: Some Estimates from a South Indian Village," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(2), pages 171-83, May.
- Dwayne Benjamin & Loren Brandt & John Giles, 2004.
"The Evolution of Income Inequality in Rural China,"
William Davidson Institute Working Papers Series
2004-654, William Davidson Institute at the University of Michigan.
- Christophe Muller, 1997. "Transient seasonal and chronic poverty of peasants: Evidence from Rwanda," CSAE Working Paper Series 1997-08, Centre for the Study of African Economies, University of Oxford.
- Lokshin Michael & Ravallion Martin, 2004. "Household Income Dynamics in Two Transition Economies," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 8(3), pages 1-33, September.
- Gibson, John, 2001. "Measuring chronic poverty without a panel," Journal of Development Economics, Elsevier, vol. 65(2), pages 243-266, August.
- Alemayehu Geda & Niek de Jong & Mwangi S. Kimenyi & Germano Mwabu, 2005.
"Determinants of Poverty in Kenya: A Household Level Analysis,"
2005-44, University of Connecticut, Department of Economics.
- Geda, A. & de Jong, N. & Mwabu, G. & Kimenyi, M.S., 2001. "Determinants of poverty in Kenya : a household level analysis," ISS Working Papers - General Series 19095, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
- Trudy Owens & John Hoddinott, 1998. "Investing in development or investing in relief: quantifying the poverty tradeoffs using Zimbabwe household panel data," Economics Series Working Papers WPS/1999-04, University of Oxford, Department of Economics.
- Trudy Owens & John Hoddinott, 1999. "Investing in development or investing in relief: Quantifying the poverty tradeoffs using Zimbabwe household panel data," CSAE Working Paper Series 1999-04, Centre for the Study of African Economies, University of Oxford.
- Neil McCulloch & Bob Baulch, 2000. "Simulating the impact of policy upon chronic and transitory poverty in rural Pakistan," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 100-130.
- Gaiha, Raghav, 1988. "Income Mobility in Rural India," Economic Development and Cultural Change, University of Chicago Press, vol. 36(2), pages 279-302, January.
- Glewwe, P. & Hall, G., 1995. "Who is Most Vulnerable to Macroeconomic Shocks? Hypotheses Tests Using Panel Data from Peru," Papers 117, World Bank - Living Standards Measurement.
- Neil McCulloch & Bob Baulch, 2000. "Simulating the Impact of Policy upon Chronic and Transitory Poverty in Rural Pakistan," Econometrics 0004003, EconWPA.
- Elizabeth Frankenberg & Duncan Thomas & Kathleen Beegle, 1999.
"The Real Costs of Indonesian Economic Crisis: Preliminary Findings from the Indonesia Family Life Surveys,"
99-04, RAND Corporation.
- Frankenberg, E. & Thomas, D. & Beegle, K., 1999. "The Real Costs of Indonesia's Economic Crisis: Preliminary Findings from the Indonesia Family Life Surveys," Papers 99-04, RAND - Labor and Population Program.
- Jyotsna Jalan & Martin Ravallion, 2000. "Is transient poverty different? Evidence for rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 82-99.
- Christiaan Grootaert & Ravi Kanbur & Gi-Taik Oh, 1997. "The dynamics of welfare gains and losses: An African case study," Journal of Development Studies, Taylor & Francis Journals, vol. 33(5), pages 635-657.
- Madhura Swaminathan, 1997. "The determinants of earnings among low-income workers in Bombay: An analysis of panel data," Journal of Development Studies, Taylor & Francis Journals, vol. 33(4), pages 535-551.
- Lanjouw, Peter & Stern, Nicholas, 1991. "Poverty in Palanpur," World Bank Economic Review, World Bank Group, vol. 5(1), pages 23-55, January.
- Krishnan, Pramila, 1996. "Family Background, Education and Employment in Urban Ethiopia," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(1), pages 167-83, February.
When requesting a correction, please mention this item's handle: RePEc:uab:wprdea:wpdea0307. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Miquel Colobran)
If references are entirely missing, you can add them using this form.