Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/33504 
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers No. 2078
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
The paper contributes to the measurement of poverty and vulnerability in three ways. First, we propose a new approach to separating poverty into chronic and transient components. Second, we provide corrections for the statistical biases introduced when using a small number of periods to estimate the importance of vulnerability and transient poverty. Third, we apply these tools to the measurement of chronic and transient poverty in China using a rich panel data set that extends over approximately 17 years. We find that alternative measurement techniques yield significantly different estimates of the relative importance of chronic and transient poverty, and that precision of estimates is enhanced with simple statistical corrections.
Subjects: 
poverty dynamics
transient poverty
chronic poverty
permanent poverty
China
JEL: 
C15
D31
D63
I32
Document Type: 
Working Paper

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