Dynamics and Drivers of Consumption and Multidimensional Poverty: Evidence from Rural Ethiopia

40 Pages Posted: 11 May 2013

See all articles by Tilman Brück

Tilman Brück

IGZ - Leibniz Institute of Vegetable and Ornamental Crops; ISDC - International Security and Development Center; IZA Institute of Labor Economics

Sindu Workneh Kebede

affiliation not provided to SSRN

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Abstract

This study aims to explore poverty measures, its dynamics and determinants using Multidimensional Poverty Index (MPI) and consumption poverty. Our results show that the two measures assign similar poverty status to about 52 percent of households and that both approaches confirm poverty is mainly transient in rural Ethiopia. However, we find that the trend in adjusted head count poverty is different when using these two poverty measures.In terms of determinants of poverty dynamics, we find that household size matters in consumption poverty while we do not find significant effects on multidimensional poverty. Amongst the shocks, drought shock is found to affect consumption poverty but not multidimensional poverty. This implies that short-term shocks are more reflected in consumption poverty while the effect of simultaneous shocks is exhibited significantly on multidimensional poverty. Overall, our result provides empirical evidence on the importance of using both measures as complementary to get a full picture of poverty measure, dynamics and determinants.

Keywords: poverty dynamics, consumption, multidimensional poverty index, rural Ethiopia

JEL Classification: I32, O12

Suggested Citation

Brück, Tilman and Workneh Kebede, Sindu, Dynamics and Drivers of Consumption and Multidimensional Poverty: Evidence from Rural Ethiopia. IZA Discussion Paper No. 7364, Available at SSRN: https://ssrn.com/abstract=2263600 or http://dx.doi.org/10.2139/ssrn.2263600

Tilman Brück (Contact Author)

IGZ - Leibniz Institute of Vegetable and Ornamental Crops ( email )

Theodor-Echtermeyer-Str. 1
Grossbeeren, 14979
Germany

HOME PAGE: http://www.igzev.de

ISDC - International Security and Development Center ( email )

Friedrichstr. 88
Berlin, 10117
Germany

HOME PAGE: http://www.isd-center.org

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Sindu Workneh Kebede

affiliation not provided to SSRN

No Address Available

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