“The Poor Stay Poor”: Household Asset Poverty Traps in Rural Semi-Arid India

Felix Naschold

World Development, 2012, vol. 40, issue 10, 2033-2043

Abstract: Although identifying household-level poverty dynamics would have important implications for poverty reduction policies empirical evidence is still scant. This paper employs a novel semiparametric panel data estimator that combines the advantages of estimation methods in the existing literature and applies it to a uniquely long panel data set to examine poverty dynamics in three villages in rural semi-arid India. Structural immobility is pervasive. The currently poor are likely to remain poor, suggesting a structural poverty trap. While all households face static asset holdings, higher castes, larger landholders, and more educated households are significantly less likely to be poor.

Keywords: household welfare dynamics; semiparametric estimation; Asia; India; panel data; asset poverty (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (39)

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Working Paper: “Poor stays poor” - Household asset poverty traps in rural semi-arid India (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:40:y:2012:i:10:p:2033-2043

DOI: 10.1016/j.worlddev.2012.05.006

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