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Income Risk, Coping Strategies and Safety Nets

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  • Stefan Dercon

Abstract

High income risk is part of life in developing countries. Climatic risks, economic fluctuations, but also a large number of individual-specific shocks make these households vulnerable to serious hardship. For example, details are given on the various shocks and events causing serious hardship to rural households in Ethiopia in the last twenty years. Not surprisingly for Ethiopia, climatic events are the most common cause of shocks, but many households suffer from other common or idiosyncratic shocks related to economic policy, labour or livestock.

Suggested Citation

  • Stefan Dercon, 2002. "Income Risk, Coping Strategies and Safety Nets," WIDER Working Paper Series DP2002-22, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:dp2002-22
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    References listed on IDEAS

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