Why do the poor pay more? Exploring the poverty penalty concept

Ronald Mendoza

Journal of International Development, 2011, vol. 23, issue 1, 1-28

Abstract: The poverty penalty refers to the relatively higher cost shouldered by the poor, when compared to the non-poor, in their participation in certain markets. By trying to further develop this concept, this paper clarifies some of the subtle and more direct ways through which the poor could be marginalised in the market system. A brief review of the business and economics literature suggests that there are different possible causes behind various forms of the poverty penalty, and hence distinct ways to address them, depending on its form, the nature of the market under analysis, the specific country context, the characteristics of the poor themselves and the prevalence of market failures among other factors. Copyright (C) 2008 John Wiley & Sons, Ltd.

Keywords: information; poverty penalty; market failure; catastrophic health spending (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (31)

Downloads: (external link)
http://hdl.handle.net/10.1002/jid.1504

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: https://EconPapers.repec.org/RePEc:wly:jintdv:v:23:y:2011:i:1:p:1-28

Access Statistics for this article

Journal of International Development is currently edited by Paul Mosley and Hazel Johnson

More articles in Journal of International Development from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().