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The Persistence of Subjective Poverty in Urban Ethiopia
Institutionen för nationalekonomi med statistik, Göteborgs universitet.
Institutionen för nationalekonomi med statistik, Göteborgs universitet.
Mid Sweden University, Faculty of Human Sciences, Department of Social Sciences.ORCID iD: 0000-0001-7206-6568
2012 (English)Report (Other academic)
Abstract [en]

Using panel data spanning 15 years, this paper  investigates the persistence and correlates of subjective and consumption  poverty in urban Ethiopia. Despite the decline in consumption poverty in  recent years, which has been linked to rapid economic growth, subjective  poverty has remained largely unchanged. Dynamic probit regression results  show that households with a history of past poverty continue to perceive  themselves as poor even if their material consumption improves. Our results  also suggest that the relative economic position of households is a strong  determinant of subjective poverty, and having at least some type of  employment reduces the likelihood that households will perceive themselves  as poor, even if they remain in objective poverty. Receiving remittances  from abroad, on the other hand, does not reduce perceived poverty, even if  it raises material consumption. We argue that any analysis to measure the  impact of growth on welfare should encompass subjective measures as  well.

Place, publisher, year, edition, pages
, Working Papers in Economics, 549
Keyword [en]
Ethiopia; subjective poverty; dynamic probit
National Category
URN: urn:nbn:se:miun:diva-18002OAI: diva2:579317
FormasSida - Swedish International Development Cooperation Agency
Available from: 2012-12-19 Created: 2012-12-19 Last updated: 2013-09-16Bibliographically approved

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