Shocks, income diversification and welfare in developing and transition countries
This dissertation takes a welfare perspective to analyze how rural households in developing countries manage risks ex-ante and cope with shocks ex-post. The first part looks at risk-coping strategies and analyzes the socio-economic consequences of AIDS-related mortality in rural sub-Saharan Africa. Chapter 2 shows that households in rural Zambia are able to stabilize their per-capita incomes after the death of a prime-age member. Yet, risk-sharing arrangements appear to spread the burden beyond directly afflicted households. Chapter 3 demonstrates for North-Western Tanzania that the age at parental bereavement has important consequences for children's long-term capital accumulation in terms of both health and education. These effects, however, depend on the gender of the deceased parent. Preferences of the surviving parent partly protect same-sex children from the detrimental effects of orphanhood, suggesting that risks are not equally shared within households. The second part of the dissertation explores risk-management strategies and investigates the income diversification patterns of farm households in sub-Saharan Africa. Chapter 4 analyzes the dichotomy of the non-agricultural sector in Western Kenya and the resulting poverty and inequality implications. The results show that only rich households are able to overcome the entry barriers into high-return activities. Low-return activities, however, are not concentrated among the poor. The chapter also provides evidence that high-return non-agricultural activities are associated with increased agricultural productivity. Chapter 5 examines the determinants of diversification in Burkina Faso between 1994 and 2003. Diversification into non-agricultural activities appears to be mainly motivated by insurance motives. Yet, the patterns of diversification also reflect structural change offering better opportunities in the non-farm sector. The final part of the dissertation concentrates on Eastern Europe and looks at the welfare implications of international migration for those who stay behind and the migrants themselves. Chapter 6 examines the reasons for reduced labor supply of migrant-sending households in Moldova. The findings do not support the common view that decreased labor market activity is the result of remittances-driven leisure consumption. Instead, the departure of a migrant appears to raise remaining members' productivity in home production. In addition, young adults in migrant families are substantially more likely to pursue higher education. Chapter 7 investigates the economic drivers of human trafficking. Based on a household survey on human trafficking from Belarus, Bulgaria, Moldova, Romania and Ukraine, the analysis finds that the individual risk of falling victim to human trafficking is closely related to the size of regional migration flows. The reasons are lower recruitment costs for traffickers and, to a lesser extent, negative self-selection into migration. Together, these findings illustrate that rural households in the developing world have developed various informal strategies to cope with shocks and reduce their exposure to risks. While these strategies help households to temporarily smooth income or consumption, they are likely to perpetuate poverty and reduce economic growth in the longer run. Consequently, measures that protect households from risks should play a prominent role in rural development strategies.
|Date of creation:||2010|
|Contact details of provider:|| Postal: Kiellinie 66, D-24105 Kiel|
Phone: +49 431 8814-1
Fax: +49 431 8814528
Web page: http://www.ifw-kiel.de/
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.:
- Borjas, George J, 1987.
"Self-Selection and the Earnings of Immigrants,"
American Economic Review,
American Economic Association, vol. 77(4), pages 531-553, September.
- Orrenius, Pia M. & Zavodny, Madeline, 2000.
"Self-selection among undocumented immigrants from Mexico,"
0005, Federal Reserve Bank of Dallas.
- Orrenius, Pia M. & Zavodny, Madeline, 2005. "Self-selection among undocumented immigrants from Mexico," Journal of Development Economics, Elsevier, vol. 78(1), pages 215-240, October.
- Pia M. Orrenius & Madeline Zavodny, 2001. "Self-selection among undocumented immigrants from Mexico," FRB Atlanta Working Paper 2001-1, Federal Reserve Bank of Atlanta.
- Sylvain E. Dessy & Ste´phane Pallage, 2006. "Some Surprising Effects of Better Law Enforcement Against Child Trafficking," Journal of African Development, African Finance and Economic Association, vol. 8(1), pages 115-132.
- Tamura, Yuji, 2010.
Journal of Public Economics,
Elsevier, vol. 94(7-8), pages 540-548, August.
- Tamura, Yuji, 2007. "Migrant Smuggling," The Warwick Economics Research Paper Series (TWERPS) 791, University of Warwick, Department of Economics.
- Yuji Tamura, 2007. "Migrant Smuggling," The Institute for International Integration Studies Discussion Paper Series iiisdp207, IIIS.
- Ali Mansoor & Bryce Quillin, 2007. "Migration and Remittances : Eastern Europe and the Former Soviet Union," World Bank Publications, The World Bank, number 6920.
- Edward L. Glaeser & Bruce Sacerdote, 1996.
"Why is There More Crime in Cities?,"
Harvard Institute of Economic Research Working Papers
1746, Harvard - Institute of Economic Research.
- Paul Collier & Anke Hoeffler, 2004.
"Greed and grievance in civil war,"
Oxford Economic Papers,
Oxford University Press, vol. 56(4), pages 563-595, October.
- Dennis Görlich & Christoph Trebesch, 2008.
"Seasonal Migration and Networks—Evidence on Moldova’s Labour Exodus,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(1), pages 107-133, April.
- Görlich, Dennis & Trebesch, Christoph, 2008. "Seasonal migration and networks-evidence on Moldova’s labour exodus," Munich Reprints in Economics 20444, University of Munich, Department of Economics.
- Görlich, Dennis & Trebesch, Christoph, 2008. "Seasonal migration and networks: Evidence on Moldova's labour exodus," Open Access Publications from Kiel Institute for the World Economy 4282, Kiel Institute for the World Economy (IfW).
- Guido Friebel & Sergei Guriev, 2002.
"Smuggling Humans: A Theory of Debt-Financed Migration,"
w0058, Center for Economic and Financial Research (CEFIR), revised Dec 2005.
- Guido Friebel & Sergei Guriev, 2006. "Smuggling Humans: A Theory of Debt-financed Migration," Journal of the European Economic Association, MIT Press, vol. 4(6), pages 1085-1111, December.
- Guido Friebel & Sergei Guriev, 2006. "Smuggling humans: A theory of debt-financed migration," Sciences Po publications info:hdl:2441/ir3267m2793, Sciences Po.
- Friebel, Guido & Guriev, Sergei, 2004. "Smuggling Humans: A Theory of Debt-Financed Migration," IZA Discussion Papers 1025, Institute for the Study of Labor (IZA).
- Friebel, Guido & Guriev, Sergei, 2004. "Smuggling Humans: A Theory of Debt-Financed Migration," CEPR Discussion Papers 4305, C.E.P.R. Discussion Papers.
- Carrington, William J & Detragiache, Enrica & Vishwanath, Tara, 1996. "Migration with Endogenous Moving Costs," American Economic Review, American Economic Association, vol. 86(4), pages 909-930, September.
- Zenou, Yves, 2003.
"The Spatial Aspects of Crime,"
CEPR Discussion Papers
4028, C.E.P.R. Discussion Papers.
- Clemens, Michael A. & Montenegro, Claudio E. & Pritchett, Lant, 2008.
"The place premium : wage differences for identical workers across the US border,"
Policy Research Working Paper Series
4671, The World Bank.
- Clemens, Michael A. & Montenegro, Claudio E. & Pritchett, Lant, 2009. "The Place Premium: Wage Differences for Identical Workers Across the US Border," Scholarly Articles 4412631, Harvard Kennedy School of Government.
- Clemens, Michael & Montenegro, Claudio & Pritchett, Lant, 2009. "The Place Premium: Wage Differences for Identical Workers across the US Border," Working Paper Series rwp09-004, Harvard University, John F. Kennedy School of Government.
- Michael Clemens & Claudio Montenegro & Lant Pritchett, 2008. "The Place Premium: Wage Differences for Identical Workers across the U.S. Border," Working Papers 148, Center for Global Development.
- Michael A. Clemens & Claudio E. Montenegro & Lant Pritchett, 2010. "The Place Premium: Wage Differences for Identical Workers across the US Border," Working Papers wp321, University of Chile, Department of Economics.
- Freeman, Scott & Grogger, Jeffrey & Sonstelie, Jon, 1996. "The Spatial Concentration of Crime," Journal of Urban Economics, Elsevier, vol. 40(2), pages 216-231, September.
- Thomas Bauer & Gil S. Epstein & Ira N. Gang, 2006. "The Influence of Stocks and Flows on Migrants’ Location Choices," CEDI Discussion Paper Series 06-13, Centre for Economic Development and Institutions(CEDI), Brunel University.
- Freeman, Richard B., 1999. "The economics of crime," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 52, pages 3529-3571 Elsevier.
- Leblang, David & Satyanath, Shanker, 2008. "Politically generated uncertainty and currency crises: Theory, tests, and forecasts," Journal of International Money and Finance, Elsevier, vol. 27(3), pages 480-497, April.
- Amin, Mohammad & Mattoo, Aaditya, 2006. "Can guest worker schemes reduce illegal migration ?," Policy Research Working Paper Series 3828, The World Bank.
- Domar, Evsey D., 1970. "The Causes of Slavery or Serfdom: A Hypothesis," The Journal of Economic History, Cambridge University Press, vol. 30(01), pages 18-32, March.
- repec:ilo:ilowps:338944 is not listed on IDEAS
- Kaivan Munshi, 2003. "Networks in the Modern Economy: Mexican Migrants in the U. S. Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 118(2), pages 549-599.
- Arnab K. Basu & Nancy H. Chau, 2003. "Targeting Child Labor in Debt Bondage: Evidence, Theory, and Policy Implications," World Bank Economic Review, World Bank Group, vol. 17(2), pages 255-281, December.
- Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
When requesting a correction, please mention this item's handle: RePEc:zbw:ifwkie:59754. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.