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This paper analyzes household data from nine programs in the Sahel region using a harmonized approach to compare Proxy-Means Testing (PMT) and Community-Based Targeting (CBT) as conducted in practice, once geographical targeting has been applied. Results show that the targeting performance measured depends critically on the definition of the targeting objectives, share of beneficiaries selected, and indices used to evaluate targeting. While PMT performs better in reaching the poorest households based on per capita consumption, it differs little from CBT, random or universal selection when distribution-sensitive measures are employed, or when food security is used as the welfare metric. Administrative costs associated with targeting represent only a small share of budgets. Results emphasize the importance of studying programs as implemented in practice instead of relying on simulations of targeting performance. They also suggest that PMT and CBT contribute little to poverty or food insecurity reduction efforts in poor and homogeneous settings. [ABSTRACT FROM AUTHOR]

In this paper we evaluate the impact of road development on household welfare in rural Papua New Guinea (PNG) between 1996 and 2010, using two geocoded cross-sectional national household surveys and corresponding road maps. We make use of time-variation in road surface type and condition as recorded in PNG's National Road Asset Management System, focusing on routes that connect rural households to urban areas. To tackle endogenous placement of road infrastructure programs, we employ a correlated random effects model that controls for the location-specific average road quality over the period of analysis. We also use a newly developed generalised quantile regression method to investigate whether road works favour the poor. Our estimates show that better roads to nearest towns lead to higher consumption levels and housing quality, and to less reliance on subsistence farming. The effects are stronger among poor and remote households. [ABSTRACT FROM AUTHOR]

The analysis of household wealth dynamic remains an important methodology in the identification of poverty traps. To overcome measurement issues in survey data, livelihoods-based approaches of the dynamics of poverty are typically examined using panel regressions of a livelihoods regression on household assets and other socio-economic factors over time. In this paper, we characterise the livelihoods regression as a 'livelihoods technology', and use a latent class-technology approach to account for heterogeneity in how households generate a livelihood. We use a detailed dataset from rural India covering 213 households across 2001–2014, and control for selection issues through a Heckman Selection model. Our results are the first in the wealth dynamics literature to show that substantial heterogeneity exists in the technologies with which households generate their livelihoods. Importantly, we show that accounting for heterogeneity in household livelihoods 'technologies' more readily identifies different equilibria in wealth levels and provides previously foregone information on who is poor and why they remain poor. [ABSTRACT FROM AUTHOR]

The use of a marginal approach can significantly distort the predicted effects of large price variations on monetary welfare over the medium- to longer-term. This paper aims at shedding some light on the differences between a marginal approach and a non-separable agricultural household model with behavioural responses. When behavioural adjustments are allowed, households can adapt their consumption and production patterns by resulting in lower deteriorations in household welfare. The second-order effects introduced in the approach with responses reduce the negative effects due to the first-order consumption effects, with significant differences across quintiles. On average, the second-order effects represent up to roughly 40 per cent of total first-order effects. [ABSTRACT FROM PUBLISHER]

This paper identifies the negative consequences of the strongest tropical storm ever to strike Guatemala on household welfare. Per capita consumption fell in urban areas, raising poverty substantially. Households cut back on food consumption and basic durables, and attempted to cope by increasing their adult and child labour supply. The mechanisms at play include the intensity of the shock, food prices and the timing of Agatha with respect to local harvest cycles. The results are robust to placebo treatments, migration and measurement error, and partly explain the increase in poverty in the country previously attributed solely to the collateral effects of the global financial crisis. [ABSTRACT FROM AUTHOR]

The paper uses a microsimulation computable general equilibrium (CGE) model to study the impact on poverty of a complete removal of tariffs in Zimbabwe. The model incorporates 14,006 households derived from the 1995 Poverty Assessment Study Survey. This paper's novelty is that it is one among a small group of papers that incorporates individual households in the CGE model as opposed to having representative households. Using individual households allows for a comprehensive analysis of poverty. The complete removal of tariffs favours exporting sectors. Poverty falls in the economy while inequality hardly changes. The results differ between rural and urban areas. [ABSTRACT FROM AUTHOR]

This paper analyses vulnerability to poverty of rural small-scale fishing communities using cross-section data from 295 households in Cameroon and 267 in Nigeria. We propose a vulnerability measure that incorporates the idea of asset poverty into the concept of expected poverty, which allows decomposing expected poverty into expected structural-chronic, structural-transient, and stochastic-transient poverty. The findings show that most households in our study areas are expected to be structurally-chronic and structurally-transient poor. This underlines the importance of asset formation for long-term poverty reduction strategies. Further refinements are possible with longitudinal data and information about future states of nature. [ABSTRACT FROM AUTHOR]

Inequality matters for poverty reduction. However, it is often unclear what policy could do to change the distribution of income as to date there is little quantitative evidence about the household characteristics that determine the level of income inequality and its changes over time. This paper sets out to identify these determinants by adapting a regression-based inequality decomposition technique and applying it to panel data from rural Pakistan. Land ownership is key to explaining the level of inequality, but not its changes. In contrast, higher education drives changes, but not the level of inequality. Household location affects both, reflecting growing differences in market access across regions. [ABSTRACT FROM AUTHOR]

The construct of the 'feminisation of poverty' has helped to give gender an increasingly prominent place within international discourses on poverty and poverty reduction. Yet the way in which gender has been incorporated pragmatically - predominantly through the 'feminisation' of anti-poverty programmes - has rarely relieved women of the onus of coping with poverty in their households, and has sometimes exacerbated their burdens. In order to explore how and why this is the case, as well as to sharpen the methodological and conceptual parameters of the 'feminisation of poverty' thesis, this paper examines four main questions. First, what are the common understandings of the 'feminisation of poverty'? Second, what purposes have been served by the popularisation and adoption of this term? Third, what problems are there with the 'feminisation of poverty' analytically, and in respect of how the construct has been taken up and responded to in policy circles? Fourth, how do we make the 'feminisation of poverty' more relevant to women's lives - and empowerment - at the grassroots? Foremost among my conclusions is that since the main indications of feminisation relate to women's mounting responsibilities and obligations in household survival we need to re-orient the 'feminisation of poverty' thesis so that it better reflects inputs as well as incomes, and emphasises not only women's level or share of poverty but the burden of dealing with it. Another, related, conclusion is that just as much as women are often recruited into rank-and-file labour in anti-poverty programmes, 'co-responsibility' should not be a one-way process. This requires, inter alia, the more active support of men, employers and public institutions in domestic labour and unpaid care work. [ABSTRACT FROM AUTHOR]

This paper presents a methodology for adjusting measures of income and poverty for the risk faced by a household. The approach draws on the standard economic concept of risk aversion, and it is based on the intuition that households will prefer a steady stream of income to a variable one with the same mean. Relying on a Constant Relative Risk Aversion utility function, we use panel data for Argentina to compute risk-adjusted income and poverty measures. At the aggregate level, we find that taking risk into account substantially increases the poverty headcount. Moreover, a regression analysis suggests that many household characteristics are correlated not only with the average income of the household over time, but also with its variability. [ABSTRACT FROM AUTHOR]

This article discusses the impact of drought on poverty dynamics in the South Wollo area of northeastern Ethiopia. Using both survey and anthropological/qualitative data covering a six-year period, the paper assesses which households were able to hold on to assets and recover from the 1999–2000 drought and which were not. It suggests that while the incidence of poverty changed very little during 1997 to 2003 despite the occurrence of a major drought, the fortunes of the poorest improved, but not enough to keep them from poverty. The study concludes by asking how current policies affect patterns of poverty and inequality and what might be done to improve welfare in South Wollo. [ABSTRACT FROM AUTHOR]

Increasing attention is now being paid to poverty dynamics in developing countries. This work links the extent to which households smooth consumption or smooth assets given income shocks, the empirical evidence on the churning of households in and out of poverty, and the possibility that temporary shocks can have permanent consequences. Using longitudinal data from rural Zimbabwe, this paper extends the discussion of these issues by disaggregating the impact of shocks by levels of asset holdings, by disaggregating the impact of shocks on individual level welfare and by assessing the extent to which such shocks have permanent consequences. By doing so, it assesses the validity of distinguishing between asset and consumption smoothing and provides insights into whether poverty dynamics assessed at the household level provide an adequate picture of dynamics at the individual level. [ABSTRACT FROM AUTHOR]