Economics at your fingertips  

Understanding poverty dynamics and vulnerability in Tanzania: 2012–2018

Jehovaness Aikaeli, David Garcés‐Urzainqui and Kenneth Mdadila

Review of Development Economics, 2021, vol. 25, issue 4, 1869-1894

Abstract: We study poverty dynamics and vulnerability in Tanzania between 2012 and 2018 using synthetic panel methods. Under the surface of apparent stability in aggregate poverty rates, and despite robust economic growth, households experienced strong fluctuations in consumption levels during this period: 12.5% of the population remained in persistent poverty, a further 30% experienced transient poverty, and one of five Tanzanians above the poverty line in 2012 was poor 6 years later. Education and employment in the nonfarm sector are particularly effective at shielding households from poverty, while rural and large households with many children are most likely to slip into poverty. Considerable differences exist between less‐deprived areas such as Dar es Salaam or Kilimanjaro and regions in the northwest, where persistent poverty is especially high. Looking ahead to the impact of COVID‐19, those households least prepared to take preventive measures against the virus suffer from more adverse poverty dynamics, while those involved in the sectors taking the hardest economic hit from the pandemic start from a better pre‐pandemic situation. This suggests that novel policies that specifically support this ‘new vulnerable’ need to be combined with redoubled efforts to address the structural causes of poverty and vulnerability.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1363-6669

Access Statistics for this article

Review of Development Economics is currently edited by E. Kwan Choi

More articles in Review of Development Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2022-05-07
Handle: RePEc:bla:rdevec:v:25:y:2021:i:4:p:1869-1894