Volumen 45 Número 90 (2022)

Permanent URI for this collectionhttp://54.81.141.168/handle/123456789/193393

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SPECIAL: Economic inequality and redistribution policies
  • Presentation: Special Issue of ECONOMÍA “Economic Inequality and Redistribution Policies” Andreoli, Francesco; Olivera, Javier
  • Mobility prospects and preferences for redistribution in Latin America Lasarga, Evelin; Leiter, Martín; 1-30
  • Allocating an indivisible good. A questionnaire-experimental study of intercultural differences Schokkaert, Erik; Capeau, Bart; Kurt, Devooght; Lelli, Sara; 31-47
  • Poverty dynamics in Nairobi's slums; Testing for state dependence and heterogeneity effects Islam, Md Nizamul; FAYE, Ousmane; 48-73
  • Monetary policy and inequality under household heterogeneity and incomplete markets Villarreal, Francisco Gabriel; 74-110
  • Women Empowerment and Demand for Sexual and Reproductive Health Services Francke, Pedro; Quispe-Ortogorin, Diego; 111-127

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      Poverty dynamics in Nairobi's slums; Testing for state dependence and heterogeneity effects
      (Pontificia Universidad Católica del Perú, 2022-12-30) Islam, Md Nizamul; FAYE, Ousmane
      We investigate the factors underlying poverty transitions in Nairobi’s slums focusing on whether differences in characteristics make people more prone to enter poverty and persist in, or whether past experience of poverty matters on future states. Understanding these issues is essential for the design of effective policy programs aimed at enhancing the lives of the poor. The paper uses an endogenous switching model, which accounts for initial conditions, non-random attrition, and unobserved heterogeneity.Estimations are based on a panel dataset from the Nairobi Demographic Surveillance System. Results indicate that true state dependence (TSD) constitutes the major factor driving poverty persistence. There are little heterogeneity effects. Even when household and individual observed characteristics differ notably, the TSD size remains very large. Active anti-poverty programs aimed at breaking the cycle of poverty constitute then the most appropriate policies for taking people out of poverty and preventing them to fall back in.