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Dynamics of Poverty in Ethiopia

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  • Arne Bigsten
  • Abebe Shimeles

Abstract

This paper addresses issues related to the dynamics of income poverty using unique household panel data for urban and rural areas of Ethiopia covering the period 1994-97. The percentage of households that remained in poverty was twice as large in urban areas as in rural areas. This suggests that income variability is a serious problem in rural areas, while the persistence is a key feature of urban poverty. The paper also discusses household characteristics that are correlated with the incidence of chronic poverty as well as vulnerability to poverty.

Suggested Citation

  • Arne Bigsten & Abebe Shimeles, 2004. "Dynamics of Poverty in Ethiopia," WIDER Working Paper Series RP2004-39, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2004-39
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    File URL: https://www.wider.unu.edu/sites/default/files/rp2004-039.pdf
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    References listed on IDEAS

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    1. Bob Baulch & John Hoddinott, 2000. "Economic mobility and poverty dynamics in developing countries," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 1-24.
    2. Simon Burgess & Carol Propper, 1998. "An Economic Model of Household Income Dynamics, with an Application to Poverty Dynamics among American Women," CASE Papers 009, Centre for Analysis of Social Exclusion, LSE.
    3. Daniel Ayalew, 2003. "Risk-sharing networks among households in rural Ethiopia," CSAE Working Paper Series 2003-04, Centre for the Study of African Economies, University of Oxford.
    4. Mary Jo Bane & David T. Ellwood, 1986. "Slipping into and out of Poverty: The Dynamics of Spells," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 1-23.
    5. Jalan, Jyotsna & Ravallion, Martin, 1996. "Transient poverty in rural China," Policy Research Working Paper Series 1616, The World Bank.
    6. John L. Rodgers & Joan R. Rodgers, 1991. "Measuring the Intensity of Poverty among Subpopulations: Applications to the United States," Journal of Human Resources, University of Wisconsin Press, vol. 26(2), pages 338-361.
    7. Stefan Dercon, 2002. "Income Risk, Coping Strategies, and Safety Nets," The World Bank Research Observer, World Bank, vol. 17(2), pages 141-166, September.
    8. Stefan Dercon, 2002. "Income Risk, Coping Strategies, and Safety Nets," World Bank Research Observer, World Bank Group, vol. 17(2), pages 141-166, September.
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    Cited by:

    1. Zhang, Xiaobo & Rockmore, Marc & Chamberlin, Jordan, 2007. "A typology for vulnerability and agriculture in Sub-Saharan Africa," IFPRI discussion papers 734, International Food Policy Research Institute (IFPRI).
    2. Christian Rogg, 2006. "Asset Portfolios in Africa: Evidence from Rural Ethiopia," WIDER Working Paper Series RP2006-145, World Institute for Development Economic Research (UNU-WIDER).
    3. Azomahou T.T. & Yitbarek E., 2015. "Poverty persistence and informal risk management: Micro evidence from urban Ethiopia," MERIT Working Papers 2015-006, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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