Abstract

AbstractWe examine the impact of rural road construction on multidimensional poverty by using Nepal's Demographic and Health Survey and a difference‐in‐differences approach. We find reductions in deprivation, mainly driven by asset ownership and dwelling infrastructure, and small or non‐significant effects on health and education. Results are robust to different specifications and estimation methods, although we find heterogeneity across groups and dimensions. We argue that the heterogeneity might be driven by labour characteristics, infrastructure requirements, time considerations; and risk assessment and decision‐making practices. Our work highlights the importance of multidimensional measures to assess poverty and to evaluate infrastructure projects. Copyright © 2017 John Wiley & Sons, Ltd.

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