Income Poverty Research Articles

Objective and Subjective Measures of Child Poverty in Denmark

The relative poverty line has been criticized for being arbitrary since it is defined by purely statistical measures without any theory linking objective income poverty to subjectively experienced poverty. The objective-subjective poverty nexus is explored empirically by comparing poverty measures for Danish children using EU-SILC data from 2019. The objective measure is based on the 50 % poverty line, while the subjective measures cover deprivation, financial coping, and accumulation of deprivations. Results shows a far from perfect overlap between objective and subjective poverty, but the subjective poverty risk is much higher for income poor children compared to non-poor children.

Developing strategy for rural transformation to alleviate poverty in Pakistan: Stylized facts from panel analysis

Sustainable income growth and poverty reduction remain critical challenges at the forefront of research in Pakistan, particularly in rural areas. To overcome these challenges, the role of rural transformation (RT) has emerged and gained importance in recent years. The present study is based on district-level data and covers the period from 1981 to 2019. The study attempts to quantify the role of rural transformation in boosting rural per capita income and alleviating rural poverty in the country. The study also aims to explore the impact of stages of rural transformation on rural per capita income and rural poverty alleviation. The empirical findings reveal that rural transformation (RT1 and RT2) is essential in enhancing rural per capita income and alleviating rural poverty. The role of the share of high-value crops (RT1) is more pronounced than the share of non-farm employment (RT2) in boosting rural per capita income and poverty alleviation. The trend of larger contribution of RT1 to enhance rural per capita income also continued at 2nd stage of rural transformation. In the case of poverty reduction, at 3rd stage of rural transformation, the role of RT2 is dominant. Our results indicate that districts at higher stages of rural transformation (both RT1 and RT2) tend to correlate positively with increased rural per capita income and reduced poverty rates, suggesting that progress in rural transformation is associated with improved economic conditions. However, it is important to note that this correlation does not necessarily imply a direct causal relationship between rural transformation and these economic outcomes; other factors may have influenced this relationship. In addition, the welfare impacts are more noticeable among the districts where a simultaneous shift from grain crops to cash crops and from farm employment to non-farm employment is observed. The study provides baseline information to learn experiences from fast-growing districts and to replicate the strategies in other districts, which boosts the RT process that may increase rural per capita income and enhance poverty reduction efforts.

Persistent Disadvantage in Aotearoa New Zealand

New data and research shed fresh light on our understanding of persistent disadvantage in Aotearoa New Zealand. They show that, while overall income poverty and material hardship has declined significantly over the past decade or so, a small proportion of the population continues to experience multiple, complex disadvantages over many years, and sometimes generations. There has been little meaningful policy action aimed specifically at assisting this cohort of people who are experiencing the greatest need. Fundamental changes are needed across a range of systems. Providing effective supports and investments, and removing structural barriers and inequities, would have significant intergenerational pay-offs.

DOES MICROFINANCING, FINANCIAL INCLUSION, AND EDUCATIONAL LOANS ALLEVIATE POVERTY AND INEQUALITY: EVIDENCE FROM VIETNAM

Poverty reduction is considered as the top priority of governments and international institutions. At the same time income inequality is a far-reaching concern especially in emerging nations. US former president even labelled income inequality and poverty are the challenges of our times. Theoretically there are different views on the impact of microfinancing and financial inclusion on income inequality and poverty, hence, it is interesting to evaluate these estimations in Vietnamese context from 1986 to 2020. The researchers have applied the Bayesian Auto-regressive Distributed Lags (BARDL) model and exposed that microfinancing, financial inclusion, educational loans increase income equality and reduces poverty. Based on the evidences, the paper implies that government institutions must focus on microfinancing and financial inclusion aspects to facilitate poor and boost prosperity which ultimately brings income equality.

To Examine the Underpinning Factors Responsible for Child Streetism in Dar Es Salaam and Dodoma Cities, Tanzania

Purpose: This paper examines the underpinning factors responsible for child streetism in Dar es Salaam and Dodoma cities, Tanzania.
 Methodology: The study employed a qualitative method. Instruments for data collection included participants’ interviews, key informant interviews, and document review. The adopted research paradigm was the interpretivism research paradigm. This paradigm was chosen on the basis that the study wanted to have in-depth information on the influence of income poverty and family development on child streetism adopting the qualitative nature of the research. The adopted research approach was the inductive research approach because of the qualitative nature of the study. The population consisted of street children living on the streets of Dodoma and Dar es Salaam cities in Tanzania while the study sample size included 38 street children and 18 key informants.
 Findings: The findings revealed that income, poverty, and Lack of family capacity to meet children’s basic needs such as food, shelter, clothes, education, and health needs were the main causes of child streetism. The study findings are also supported by the vulnerability theory. The theory shows how vulnerable environments including poverty may lead to certain social consequences. According to this theory, children’s vulnerability is explained in different ways including being victims of hunger and homelessness, which is considered an identity of a vulnerable population.
 Unique Contribution to Theory, Practice and Policy: Vulnerability theory recognizes that the human experience of constant vulnerability varies as a result of stages in the life course, social institutions, and law, which often trace intersecting forms of oppression on the basis of race, gender, sexuality, disability, and class. Vulnerability thus provides a heuristic device for exposing the structural privilege and disadvantage enveloped in these relationships and suggests ways to readjust them in order to advance social justice and lessen inequality. It is recommended that the Regional Administrations and Local Government Authorities in collaboration with other stakeholders establish a special campaign to enroll street children into the education system and facilitate family reunification

Estimating shadow prices in economies with multiple market failures

Approaches to the estimation of shadow prices generally assume that all but one market function correctly. However, multiple market failures are common in developing countries. We present a theoretical model and an empirical strategy to estimate the shadow price of a subsistence good in an economy where labor markets fail. Our results show that: 1) among subsistence producers, the shadow price of this good must be greater than or equal to the market price, and equal to it for surplus growers; and 2) current methods create biases when the otherwise-perfect-markets assumption is violated. The propositions are tested using a representative survey for rural Mexico. We find that the shadow wage is below that of the market (MXN $93.2/day vs. MXN $132.3/day), and that the shadow price for subsistence corn is over ten times greater than its market price (MXN $32.37/kg vs. MXN $3.19/kg). Unbiased shadow price estimates for subsistence goods help to overcome the limitations of current income poverty measures: their overestimation of the purchasing power of subsistence households and their underestimation of the value of subsistence goods. In rural Mexico, current practice underestimates the population in food poverty by 2%; an additional 9% has income above the poverty line yet fail to meet the utilization dimension of food security.

Rural transformation, income growth, and poverty reduction by region in China in the past four decades

China has experienced rapid rural transformation in the past four decades. Accompanying the rapid transformation is a significant rise in rural household income and a substantial fall in rural poverty. This paper examines the evolutions of and the relationships between rural transformation (high-value agriculture and rural non-farm employment) and its outcomes (per capita rural income and rural poverty incidence) using provincial-level data. The results show that 31 provinces/autonomous regions/municipalities have undergone significant rural transformation, but the level and speed of rural transformation differed considerably. Moreover, an increased level of rural transformation is often associated with higher per capita rural income and reduced rural poverty incidence. Notably, a category of provincial rural transformation based on high-value agriculture and rural non-farm employment is also analyzed. We further discuss the likely impacts of institutions, policies, and investments (IPIs) on rural transformation and conclude with policy implications.

Determinants of poverty among Indigenous people in Mexico's Guerrero Mountain Region

AbstractMotivationThe eradication of poverty is one of Mexico's greatest challenges. This challenge is even greater for Indigenous communities, where seven out of 10 people were living in poverty in 2018. Despite the economic, social, and cultural impacts on Indigenous people, there has been scant literature addressing the determinants of Indigenous poverty in Mexico, while studies on the Guerrero Mountain Region (GMR) are scarcer still.PurposeThis study aims to identify the socioeconomic and contextual determinants of income and multidimensional poverty in the GMR, one of the poorest regions in Mexico and Latin America, inhabited primarily by Indigenous people.Methods and approachWe use data on 989 individuals in the GMR, collected during the 2018 Socioeconomic Conditions Module of Mexico's National Household Income and Expenditure Survey. To examine the main determinants of individual poverty, we use Bayesian logistic regression (BLR), which allows us to use the data to update information about the parameters and evaluate their distributional properties. The method simplifies multi‐causal elements by classifying them into categories of well‐being that incorporate more than economic factors.FindingsThe income‐poor population is also multidimensionally poor. Education helps to reduce poverty as households that spend more on schooling are less likely to be poor. Households with many members, those with high dependency ratios, and those with members living with disability all tend to be poor. Households with access to landlines and the internet are less likely to be poor.Policy implicationsMore diagnosis of poverty is needed. This should consider overlapping vulnerabilities (institutional, socioeconomic, environmental, and sociocultural) in this region for each Indigenous group. Public policies need to be monitored for performance.

A qualitative evaluation of a conditional cash transfer programme in Mexico: recipients’ perspectives of long-term results

The Mexican conditional cash transfer programme (CCT), Prospera, was a leading poverty reduction strategy for over two decades. The programme, under the framework of CCT programmes, had two objectives with differing time horizons, short term alleviation of income poverty and a longer-term objective of breaking intergenerational poverty. The aim of this paper is to explore the recipients’ perspectives in relation to the CCT programme in Mexico and whether they perceived it achieved its long-term objectives. A qualitative method was adopted with 47 interviews conducted with recipients with over 15 years enrolment in the programme. Analysis results suggested that the recipients were aware of the long-term objectives of the programme, understanding education being key to breaking intergenerational poverty, and that they felt the programme had enabled children of recipients to break from cycles of poverty. The paper sought to highlight the value of qualitative evaluations to form part of future evaluations in measuring the long-term success of CCT programmes.

The impact of financial development on income inequality and poverty.

The Turkish economy has undergone a structural transformation with impressive economic performance during 2002-2018 and then a slowdown. The implementation of policies on the financial markets results in a significant capital inflow, which leads to an increase in the volume of domestic credit. Despite improvements in Türkiye, income inequality and poverty are still relatively high. While much of the literature shows that financial development accelerates growth, there is no consensus on its clear impact on poverty and inequality. While some studies stress that financial development improves inequality and combats poverty by increasing the ability of advantage of new investment opportunities, and by improving the allocation of capital, others point out that the beneficial impact of financial development depends on whether the overall population or the upper-income groups benefit or not. Therefore, this paper aims to empirically investigate the impact of financial development on inequalities and poverty during the 2002-2017 period when Türkiye relatively has been prosperous. According to simultaneous equation regression findings, the widening of the financial sector leads to more equal income distribution and poverty alleviation.

Hungry and warm; cold and fed? The intersection of food and fuel poverty

Abstract Background The UK news has been increasingly reporting of people forced to choose between “heating and eating.” The (self-)rationing of food and fuel has harmful health repercussions, yet the intersection food poverty and fuel (or energy) poverty has been largely neglected in academic literature. This study looks to triangulate reports from the UK news and stakeholders in food and fuel poverty (FFP) mitigation to determine and compare how FFP is framed relationally between the sources. Methods Using the Nexis Lexis database, we searched for UK news articles on FFP, published between January 2010 and April 2022. Stakeholders in the FFP mitigation space, identified via hand-searching grey literature and snowball sampling, were interviewed between April and June 2023. Twenty interviews were conducted, and 185 news articles were included. Relying on framing analysis, extracted news data fragments and interview transcripts were thematically coded, analysed, and triangulated. Results Three descriptive frames of FFP were inductively identified across both data sources: 1) FFP is experienced as “trade-off” - a choice between heating and eating; 2) FFP is experienced as “mutual cutbacks” - an effort to reduce both necessities; 3) FFP is “not distinct” - the problem is income poverty. A fourth frame, that FFP is “situational” - it does not involve decisions but is a situation people find themselves in, only emerged from interviews. The UK news most prominently framed FFP as a “trade-off” (70%), followed by as a “mutual cutback” (29%), and rarely as “not distinct” (1%). Whereas stakeholders largely framed the issue as “mutual cutbacks” (45%), followed by as a “trade off” (30%), as “not distinct” (25%) and as “situational” (10%). Conclusions The varied and mismatched framings between the news and stakeholders suggests that FFP is complex and potentially poorly understood. Centring the framing of people with lived FFP experience may help towards meaningfully tackling FFP. Key messages • Food and fuel poverty (FFP) is largely framed differently between the UK news and FFP mitigation stakeholders. • Centring the framing(s) of people with lived experience may help towards tackling FFP.

Geopolitics of the Central America and USA: An Economic Perspective

The geopolitics of the United States and Central America have been intricately linked for centuries, driven by historical, economic, and strategic factors. Central America, consisting of seven countries, has long been considered the United States' "backyard," with the U.S. exerting substantial influence in the region. Historically, this influence has often been characterized by interventions, both overt and covert, in the internal affairs of Central American nations, which has left a legacy of political instability and regional tensions. Economically, Central America is a vital trade partner for the United States. The region's geographic proximity has made it a valuable destination for U.S. exports and a source of agricultural products and manufactured goods. Trade agreements like CAFTA-DR have further solidified this economic relationship, benefiting both sides. However, the region also faces challenges such as income inequality, poverty, and crime, which can have a direct impact on the United States, particularly concerning immigration and security concerns. While the cultures of the Central America and America, in many cases are diametric in relation to each other, the geographical proximity of the two has forged a relationship that can best be described in terms of hegemonic strategy. More importantly, for policymakers and scholars, to understand and to influence the future liaison between the US and Central America, they must reach across time and space into the past to learn the lessons of previous events. This study examines the US in Central America in the 20thcentury to determine possible future U.S. actions in the region.

Inequality, poverty, and resilience to economic shrinking

PurposeWith the recognition that generating economic growth is not the same as sustaining it, the challenge to catch-up and growth literature is discerning between these processes. Recent research suggests that the decline in the frequency of “shrinking” episodes is more important for long-term development than higher growth rates. By using a framework centred around social capabilities, this study aims to investigate the effects of income inequality and poverty on economic shrinking frequency, as opposed to previous literature that has exclusively had a growth focus. The aim is to investigate how and why some societies might be more resilient to economic shrinking.Design/methodology/approachThe research is a quantitative study, and the authors build a longitudinal data set including 23 developing countries throughout 42 years to test the paper’s purpose. This study uses country and period fixed-effects specifications as well as cross-sectional graphical representations to investigate the relationship between proxies of economic inclusivity and the frequency of shrinking episodes.FindingsThe authors demonstrate that while inclusive societies are more resilient to shrinking overall, it is changes in poverty levels, but not changes in income inequality, that appear to be correlated with economic shrinking frequency. Inequality, while still an important element to explain countries’ growth potential as an initial condition, does not seem to make the sample more resilient to shrinking. The authors conclude that the mechanisms in which poverty and inequality are correlated with the catch-up process must run through different channels. Ultimately, processes that explain growth may intersect but not always overlap with the ones that explain resilience to shrinking.Originality/valueThe need for inclusive growth in long-term development has been championed for decades, yet inclusion has seldom been explored from the shrinking perspective. Though poverty reduction is already an important mainstream political objective, this paper differentiates itself by providing an alternate viewpoint of why this is important. Income inequality could have more of an economic growth limiting effect, while poverty reduction could be required to build resilience to economic shrinking. Developing countries will need both growth and resilience to shrinking, to catch-up with higher-income economies, which policymakers might need to balance carefully.

Association Between Temporary Employment and Gradient Health Outcomes Among Chinese Workers.

Temporary workers' health problems in China have raised concerns recently. This study aimed to assess the relationship between temporary employment and three health outcomes with gradient severity and explore mediating mechanisms. Data was obtained from a national cross-sectional survey (China General Social Survey 2018). Compared with regular workers, temporary workers reported more frequent mood disorders (β = 0.197) and disturbance of daily activities (β = 0.132), however, there was no significant difference in serious health risks (inpatient treatment) between temporary and regular workers. Income poverty, subjective social status, and family relative socioeconomic status were significant mediators. The results suggest that temporary workers have higher general health risks, and economic deprivation is the main mechanism. Therefore, Chinese policymakers should provide more inclusive preventive health services beyond the existing health care system focused on critical illness to reduce the general health risks of grassroots workers.

A comprehensive analysis of the societal impact of industrial diversity on sustainable economic development

PurposeThis paper aims to explore the interplay between industrial diversity and sustainable economic development in US counties.Design/methodology/approachAmong other popularly used measures, this study uses an underused measure, Hachman index, to gauge the degree of industrial diversity in the models. To capture the impact of industrial diversity on the local community, this study estimates the relationship of two diversity measures to four traditional socioeconomic indicators: per capita personal income growth, gross domestic product per worker, income inequality ratio and poverty rate.FindingsStatistical results suggest that industrial diversity, which is measured by Hachman index, is significantly related to the four socio-economic indicators. Industrial diversity can positively contribute to regional per capita personal income growth and mitigate income inequality and poverty stress; however, it is negatively related to the gross domestic product (GDP) per worker, which means industrial specialization may contribute to GDP per worker growth.Originality/valueThe findings of this study show that there is a nonlinear relationship between industrial diversity and all socioeconomic indicators. Most of the control variables, human capital variables and business and industry profile variables also display significant and positive impacts on economic development.

Developing Micro-Insurance to Expand the Scope of Social Security for the Informal Economy in Vietnam

Social security is considered a fundamental means to reduce poverty, eliminate social exclusion and promote social cohesion, but the majority of workers in the informal economy are still deprived of the right to social security. Many studies show that microinsurance programs have a strong potential to reach actors in the informal economy and mobilize additional resources for social protection; microinsurance is effective in reducing vulnerability to risks, enhancing the ability to protect participants, and contributing to reducing income poverty as well as reducing multidimensional poverty. Developing micro-insurance contributes to social security, hunger eradication, poverty reduction, and promoting financial inclusion. The article used data collection methods, methods of analysis, synthesis, comparison, and contrast from secondary data sources, clarifying the theoretical basis for micro-insurance development to expand the scope of social security for the informal economy, international experience and the current status of micro-insurance implementation in Vietnam. The article also offers some recommendations/policy suggestions to develop microinsurance in Vietnam shortly.

DETERMINATION OF POVERTY USING MULTI-FACETED MEASURES: EVIDENCE FROM ZAKAT APPLICANTS

Background and Purpose: Poverty, despite being a multifaceted concept, is commonly measured in either absolute or relative monetary terms. However, it can also be measured subjectively, as people form perceptions on their relative income, welfare, and life satisfaction. Poverty measurement based on objective indicators such as official poverty lines is often used to orient and prioritize policy actions. However, such ‘standard’ poverty measures based on household consumption or income aggregates have several shortcomings. This objective indicator does little to inform policy makers about public preferences. The main goal of this paper is to investigate multifaceted poverty measurement by combining objective and subjective measures to provide useful insights into poverty in Malaysia. In addition, this study explored the multifaceted poverty incidence among the low-income household from the perspective of zakat applicants.
 
 Methodology: Data was collected using a survey and interviews of zakat applicants under the category of poor and needy in the State Islamic Religious Council (SIRC) of Melaka, one of the states in Malaysia. Three poverty measurements, i.e., Poverty Line Income (PLI), Haddul Kifayah and Subjective Poverty Index (SPI), are utilized in this study.
 Findings: The PLI and Haddul Kifayah are categorized as objective poverty measures, while SPI is categorized as a subjective poverty measure. The different measures of poverty would produce different analytical results that, in turn, call for a different set of policy interventions.
 
 Contributions: These findings point to the needs of tailor-made strategies for the society to cope with multifaceted poverty.
 
 Keywords: Multifaceted poverty, objective poverty, subjective poverty, poverty measurement, zakat recipients.
 
 Cite as: Othman, A., Mohd Noor, A. H., Abdul Rasool, M. S., & Kasim, E. S. (2023). Determination of poverty using multi-faceted measures: Evidence from zakat applicants. Journal of Nusantara Studies, 8(TI), 62-86. http://dx.doi.org/10.24200/jonus.vol8issTIpp62-86

The relationship of economic growth, income inequality and poverty: a study on developing countries

This study aims to examine the relationship between income inequality, poverty and economic growth in selected eight developing countries determined by the World Bank's Atlas method between 2000 and 2020. The problem of the study is the increasing and deepening income inequality and poverty in developing countries in recent years. In this context, panel data analysis was chosen to reveal the relationship between income inequality, poverty and economic growth in developing countries, and a wide data set such as gini coefficient, head number index, per capita national income, democracy index, human development index and misery index was used. Income inequality, poverty and economic growth were analyzed with three different models) and compared with each other. Considering the results of the analysis, the Durbin-Hausman cointegration test was conducted to reveal the existence of a long-term relationship between the variables, and the existence of a long-term cointegration relationship between the variables was determined. According to the results of Dumitrescu Hurlin causality test, a bidirectional causality relationship was found between the variables. According to panel regression analysis, it was determined that while per capita increases in national income increase income inequalities, increases in democracy and per capita income reduce poverty, and increases in democracy index increase per capita income. According to the results, various social, economic and political policies have been proposed to reduce income inequality and poverty and increase economic growth.

The contribution of smallholders' livelihood activities on income inequality and poverty: Case study from rural Tanzania

AbstractThis study uses a unique panel dataset on micro data with 786 households over 3 years (2014, 2016 and 2018) at the community level in Tanzania, assessing the contribution of different income sources on the changes in income inequality and poverty. The results show that in contrast to other income sources, non‐farm self‐employment is the only source with a constant poverty‐decreasing effect. The inconsistency of the different income sources over time can also be observed for the effects on income inequality. Future research is needed to grasp the effect on inequality in more detail assessing its determinants and causal relationships.

Prioritization of zoonoses for multisectoral, One Health collaboration in Somalia, 2023

BackgroundThe human population of Somalia is vulnerable to zoonoses due to a high reliance on animal husbandry. This disease risk is exacerbated by relatively low income (poverty) and weak state capacity for health service delivery in the country as well as climate extremes and geopolitical instability in the region. To address this threat to public health efficiently and effectively, it is essential that all sectors have a common understanding of the priority zoonotic diseases of greatest concern to the country. MethodsRepresentatives from human, animal (domestic and wildlife), agriculture, and environmental health sectors undertook a multisectoral prioritization exercise using the One Health Zoonotic Disease Prioritization (OHZDP) tool developed by the United States CDC. The process involved: reviewing available literature and creating a longlist of zoonotic diseases for potential inclusion; developing and weighting criteria for establishing the importance of each zoonoses; formulating categorical questions (indicators) for each criteria; scoring each disease according to the criteria; and finally ranking the diseases based on the final score. Participants then brainstormed and suggested strategic action plans to prevent, and control prioritized zoonotic diseases. ResultsThirty-three zoonoses were initially considered for prioritization. Final criteria for ranking included: 1) socioeconomic impact (including sensitivity) in Somalia; 2) burden of disease in humans in Somalia); 3) availability of intervention in Somalia; 4) environmental factors/determinants; and 5) burden of disease in animals in Somalia. Following scoring of each zoonotic disease against these criteria, and further discussion of the OHZDP tool outputs, seven priority zoonoses were identified for Somalia: Rift Valley fever, Middle East respiratory syndrome, anthrax, trypanosomiasis, brucellosis, zoonotic enteric parasites (including Giardia and Cryptosporidium), and zoonotic influenza viruses. ConclusionsThe final list of seven priority zoonotic diseases will serve as a foundation for strengthening One Health approaches for disease prevention and control in Somalia. It will be used to: shape improved multisectoral linkages for integrated surveillance systems and laboratory networks for improved human, animal, and environmental health; establish multisectoral public health emergency preparedness and response plans using One Health approaches; and enhance workforce capacity to prevent, control and respond to priority zoonotic diseases.