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Poverty traps and social protection

  • Barrett , Christopher B
  • Carter , Michael R
  • Ikegami , Munenobu

This paper demonstrates that there are potentially large returns to having a social protection policy that stakes out a productive safety net below the vulnerable and keeps them from slipping into a poverty trap. Much of the value of the productive safety net comes from mitigating the ex ante effects of risk and crowding in additional investment. The analysis also explores the implications of different mechanisms of targeting social protection transfers. In the presence of poverty traps, modestly regressive targeting based on critical asset thresholds may have better long-run poverty reduction effects than traditional needs-based targeting.

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File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2008/03/04/000333037_20080304064501/Rendered/PDF/427520NWP00Box11008040Poverty0Traps.pdf
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Paper provided by The World Bank in its series Social Protection Discussion Papers with number 42752.

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Date of creation: 01 Feb 2008
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Handle: RePEc:wbk:hdnspu:42752
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  1. Milazzo, Annamaria & Grosh, Margaret, 2008. "Social safety nets in World Bank lending and analytical work : FY2002 - 2007," Social Protection Discussion Papers 44730, The World Bank.
  2. Ray, Debraj & Streufert, Peter A, 1993. "Dynamic Equilibria with Unemployment Due to Undernourishment," Economic Theory, Springer, vol. 3(1), pages 61-85, January.
  3. Peracchi, Franco & Perotti, Valeria & Scarpetta, Stefano, 2007. "Informality and social protection : preliminary results from pilot surveys in Bulgaria and Colombia," Social Protection Discussion Papers 41541, The World Bank.
  4. Ghatak, Maitreesh & Nien-Huei Jiang, Neville, 2002. "A simple model of inequality, occupational choice, and development," Journal of Development Economics, Elsevier, vol. 69(1), pages 205-226, October.
  5. Vodopivec, Milan & Dolenc, Primoz, 2008. "Live longer, work longer : making it happen in the labor market," Social Protection Discussion Papers 42471, The World Bank.
  6. Francisco Buera, 2009. "A dynamic model of entrepreneurship with borrowing constraints: theory and evidence," Annals of Finance, Springer, vol. 5(3), pages 443-464, June.
  7. Palacios, Robert & Whitehouse, Edward, 2006. "Civil-service pension schemes around the world," MPRA Paper 14796, University Library of Munich, Germany.
  8. Gordon Betcherman & Niels-Hugo Blunch, 2008. "The limited job prospects of displaced workers: evidence from two cities in China," Economic Change and Restructuring, Springer, vol. 41(3), pages 187-207, September.
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