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Does vulnerable employment alleviate poverty in developing countries?

Sridevi Yerrabati

Economic Modelling, 2022, vol. 116, issue C

Abstract: A vast majority of poor in developing countries resort to vulnerable employment for survival. In the absence of alternate income sources, by providing income-generating opportunities to the poor, vulnerable employment influences their household income and thereby reduces poverty. There is, however, a lack of empirical evidence in this regard. By using data from 65 developing countries from 1995 to 2019, this study examines the poverty-reducing effects of vulnerable employment. Poverty measures include incidence, depth and severity at $1.90 a day and $3.20 a day threshold, and vulnerable employment includes total, male and female participation levels. The findings based on the dynamic panel data analysis suggest that vulnerable employment reduces $1.90 a day poverty marginally and has no effect on poverty at a higher threshold. Further, these effects are gender-specific. The study gains significance in light of developing countries' efforts to reduce poverty (SDG 1) and provide decent work for all (SDG 8).

Keywords: Vulnerable employment; Poverty; Developing countries; Two-step system GMM; IV 2SLS (search for similar items in EconPapers)
JEL-codes: E24 I32 J21 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:116:y:2022:i:c:s0264999322002802

DOI: 10.1016/j.econmod.2022.106043

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