1- Department of Economics and Systems, Higher Institute of Management and Planning Education and Research, Tehran, Iran , mo.hoseini@imps.ac.ir
Abstract: (611 Views)
Understanding the distribution of poverty in society, whether chronic or transient, plays a significant role in designing and implementing effective policies to combat poverty. Using seven panel data covering different periods between 1990s and 2020s, this paper estimates the trend of chronic poverty in Iran with two approaches: the components method, and the equally distributed equivalent (EDE) poverty gap method. The results of the components method show a smaller proportion of chronic poverty compared to the second method, which reports this share as an average of 88%. Overtime, the trend of chronic poverty is along with the macroeconomics trends such that it declined from 1990s to early 2010s, and following a stable period, it becomes increasing at the end of 2010s. The EDE poverty gap method can distinguish chronic poverty into an average poverty gap term and an inequality component. The findings indicate that the changes in chronic poverty are mostly due to changes in the average poverty gap, and inter-individual inequality costs do not play a specific role in these trends, although they always constitute a larger share of chronic poverty.
Type of Study: Research |
Subject:
economic development, regional economics and growth
Received: Mar 16 2024 | Accepted: Jun 30 2024
Received: Mar 16 2024 | Accepted: Jun 30 2024
References
1. Bane, M. J. & Ellwood, D. T. (1986). Slipping into and out of poverty: the dynamics of spells in: Journal of human resources. [DOI:10.3386/w1199]
2. Bolch, K., Lopez‐Calva, L. F., & Ortiz‐Juarez, E. (2023). "When Life Gives You Lemons": Using Cross‐Sectional Surveys to Identify Chronic Poverty in the Absence of Panel Data. Review of Income and Wealth, 69(2), 474-503. [DOI:10.1111/roiw.12566]
3. Carter, M. R. & Barrett, C. B. (2006). The economics of poverty traps and persistent poverty: An asset-based approach. The Journal of Development Studies, 42(2):178-199. [DOI:10.1080/00220380500405261]
4. Coe, R. D. (1978). Dependency and poverty in the short and long run. Five thousand American families: Patterns of economic progress, 6:273-96.
5. Duclos, J.-Y., Araar, A., and Giles, J. (2010). Chronic and transient poverty: Measurement and estimation, with evidence from China. Journal of Development Economics, 91(2):266-277. [DOI:10.1016/j.jdeveco.2009.09.002]
6. Duncan, Greg J., Richard D. Coe, & Martha S. Hill. (1984). "The Dynamics of Poverty." In Years of Poverty, Years of Plenty: The Changing Economic Fortunes of American Workers & Families, edited by Greg J. Duncan, Richard D. Coe, Mary Corcoran, Martha S. Hill, & James N. Morgan, 33-70. Ann Arbor: Institute for Social Research, University of Michigan. []
7. Duncan, G. J. & Rodgers, W. (1991). Has children's poverty become more persistent? American Sociological Review, pages 538-550. [DOI:10.2307/2096273]
8. Foster, J., Greer, J., and Thorbecke, E. (1984). A class of decomposable poverty measures. Econometrica, pages 761-766. [DOI:10.2307/1913475]
9. Foster, J. E. (2009). A class of chronic poverty measures. Poverty dynamics: interdisciplinary perspectives, pages 59-76. [DOI:10.1093/acprof:oso/9780199557547.003.0003]
10. Foster, J. E., & Santos, M. E. (2013). Measuring chronic poverty. In Poverty and Social Exclusion (pp. 161-183). Routledge. [DOI:10.4324/9780203085172-15]
11. Giha, R. and Deolalikar, A. B. (1993). Persistent, expected and innate poverty: estimates for semi-arid rural south India, 1975-1984. Cambridge Journal of Economics, 17(4):409-421. [DOI:10.1093/oxfordjournals.cje.a035246]
12. Hoseini, M. (2021). The household expenditure and income surveys of Iran: Introduction and data cleaning. https://m-hoseini.github.io/HEIS [https://m-hoseini.github.io/HEIS]
13. Haughton, J., & Khandker, S. R. (2009). Handbook on poverty+ inequality. World Bank Publications.
14. Hulme, D. & Shepherd, A. (2003). Conceptualizing chronic poverty. World development, 31(3):403-423. [DOI:10.1016/S0305-750X(02)00222-X]
15. Israeli, O., & Weber, M. (2014). Defining chronic poverty: comparing different approaches. Applied Economics, 46(31), 3874-3881. [DOI:10.1080/00036846.2014.946182]
16. Jalan, J. and Ravallion, M. (1998). Transient poverty in postreform rural China. Journal of Comparative Economics, 26(2):338-357. [DOI:10.1006/jcec.1998.1526]
17. Levy, F. (1976). How Big is the American underclass? University of California, Graduate School of Public Policy.
18. Lillard, Lee A, and Robert J Willis. 1978. "Dynamic Aspects of Earning Mobility." Econometrica 46(5): 985-1012. [DOI:10.2307/1911432]
19. Mai, Tung, & Mahadevan, Renuka (2016). A research note on the poverty dynamics and cost of poverty inequality: Case study of Indonesia. Economic Analysis and Policy, 49, 100-107. [DOI:10.1016/j.eap.2015.12.003]
20. Punton, M., & Shepherd, A. (2015, September 9). What is chronic poverty? Findings from the Chronic Poverty Research Centre. ODI. [https://www.odi.org/publications/10485-what-chronic-poverty-findingschronic-poverty-research-centre.]
21. Purwono, R., Wardana, W. W., Haryanto, T., and Mubin, M. K. (2021). Poverty dynamics in Indonesia: Empirical evidence from three main approaches. World Development Perspectives, 23:100346. [DOI:10.1016/j.wdp.2021.100346]
22. Ravallion, M. (1988). Expected poverty under risk-induced welfare variability. The Economic Journal, 98(393):1171-1182. [DOI:10.2307/2233725]
23. Ravallion, M. (2015). The economics of poverty: History, measurement, and policy. Oxford University Press. [DOI:10.1093/acprof:oso/9780190212766.001.0001]
24. Rodgers, J. R. and Rodgers, J. L. (1993). Chronic poverty in the United States. Journal of Human Resources, pages 25-54. [DOI:10.2307/146087]
25. Ruggles, P. and Williams, R. (1989). Longitudinal measures of poverty: Accounting for income and assets over time. Review of Income and Wealth, 35(3):225-243. [DOI:10.1111/j.1475-4991.1989.tb00591.x]
26. Salehi-Isfahani, D. and Majbouri, M. (2013). Mobility and the dynamics of poverty in iran: Evidence from the 1992-1995 panel survey. The Quarterly Review of Economics and Finance, 53(3):257-267. [DOI:10.1016/j.qref.2010.04.001]
27. Scott, D. (2019). Income shocks and poverty traps: Asset smoothing in rural Ethiopia. Technical report, CREDIT Research Paper.
28. Sen, A. (1982). Poverty and famines: an essay on entitlement and deprivation. Oxford university press. [DOI:10.1093/0198284632.001.0001]
29. Sen, Amartya. (1987). Commodities and Capabilities. Amsterdam: North-Holland.
30. Yaqub, S. (2003). Chronic poverty: Scrutinising patterns, correlates and explorations'. Chronic Poverty Research Centre Working Paper No, 21. [DOI:10.2139/ssrn.1754450]
| Rights and permissions | |
.jpg) |
This work is licensed under a Creative Commons Attribution 4.0 International License. |
