TY - JOUR
T1 - When Life Gives You Lemons: Using Cross-Sectional Surveys to Identify Chronic Poverty in the Absence of Panel Data
AU - Bolch, Kimberly
AU - López-Calva, Luis F.
AU - Ortiz Juarez, Eduardo
PY - 2022/1/10
Y1 - 2022/1/10
N2 - At the core of poverty eradication is the need to eliminate that poverty that is persistent over time (chronic poverty). Unfortunately, traditional approaches to identifying chronic poverty require longitudinal data that is rarely available. In its absence, this paper proposes an alternative approach that only requires 1 year of cross-sectional data on monetary and non-monetary poverty. It puts forth two conjectures and contends that the combined profile of a household as both income poor and multidimensionally poor can be used as a proxy of that household being chronically income poor. To explore the viability of this approach, we use a probit model and longitudinal data for three Latin American countries to estimate households’ probabilities of remaining in income poverty based on their past income and multidimensional poverty statuses. We find empirical support for the approach that is significant, consistent across countries, and robust to various controls and periods of analysis.
AB - At the core of poverty eradication is the need to eliminate that poverty that is persistent over time (chronic poverty). Unfortunately, traditional approaches to identifying chronic poverty require longitudinal data that is rarely available. In its absence, this paper proposes an alternative approach that only requires 1 year of cross-sectional data on monetary and non-monetary poverty. It puts forth two conjectures and contends that the combined profile of a household as both income poor and multidimensionally poor can be used as a proxy of that household being chronically income poor. To explore the viability of this approach, we use a probit model and longitudinal data for three Latin American countries to estimate households’ probabilities of remaining in income poverty based on their past income and multidimensional poverty statuses. We find empirical support for the approach that is significant, consistent across countries, and robust to various controls and periods of analysis.
UR - http://www.scopus.com/inward/record.url?scp=85122656777&partnerID=8YFLogxK
U2 - 10.1111/roiw.12566
DO - 10.1111/roiw.12566
M3 - Article
SN - 0034-6586
JO - REVIEW OF INCOME AND WEALTH
JF - REVIEW OF INCOME AND WEALTH
ER -