Testing a social safety net

Ravallion, Martin; Walle, Dominique van de; Gautam, Madhur

doi:10.1016/0047-2727(94)01446-u

Cited by 72 publications

(65 citation statements)

References 13 publications

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“…Since considerable transient poverty is found in the consumption panel data of Hungarian households used in Ravallion et al (1995) and that of the region of rural China in Jalan and Ravallion (1998), it has been confirmed that differences in the two types of poverty play an important role when choosing a policy for dealing with poverty. Gibson (2001) proposed a new method for decomposing cross-sectional poverty estimates into chronic and transient components using household survey data from Papua New Guinea.…”

Section: Introductionmentioning

confidence: 99%

Measuring chronic and transient components of poverty: a Bayesian approach

Hasegawa

Ueda

2006

Empirical Economics

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After the publication of Ravallion's (1988) seminal work on chronic and transient poverty, wide attention has been given to the components of poverty. We propose a Bayesian mixture model to measure poverty and divide it into chronic and the transient poverty using the Foster, Greer and Thorbecke (FGT) measure. These two types of poverty are illustrated using the Panel Study of Income Dynamics (PSID) data.

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Section: Introductionmentioning

confidence: 99%

Measuring chronic and transient components of poverty: a Bayesian approach

Hasegawa

Ueda

2006

Empirical Economics

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“…Lokshin and Ravallion (2000) analyzed the role of the social safety net in protecting the poor from the 1998 Russian financial crisis and concluded that the social safety net in place was largely insufficient to protect the poor from the Russian crisis. Ravallion et al (1995) looked at the early years of the transition in Hungary and found that the safety net was able to protect effectively from poverty but did not play an important role in lifting people out of poverty. Van de Walle (2004) followed in the steps of this last paper to test the public safety net in…”

Section: Some Evidence On Public and Private Transfers In Transitionmentioning

confidence: 99%

“…We can also use these same matrixes to estimate two measures proposed by Ravallion et al (1995) and designed to capture the probability of exiting poverty and the probability of not falling into poverty. Based on two years' panels and on the taxonomy provided above, we can construct two types of transition probabilities matrixes, which we call and as follows:…”

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confidence: 99%

“…Matrix is a non-efficient estimation of the more common Markov type of transition matrix. It can be used to calculate poverty transitions, the incidence of transfers on poverty and to calculate the PROT and PROM tests proposed by Ravallion et al (1995). These are simple tests to check on the capacity of transfers to protect the non-poor from falling into poverty (PROT) and to promote the poor moving out of poverty (PROM).…”

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confidence: 99%

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The Poverty Reduction Capacity of Private and Public Transfers in Transition

Verme

2010

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThe transitional economies of the Former Soviet Union (FSU) have enjoyed an extraordinary period of growth and poverty reduction between 2000 and 2007 and this occurred in concomitance with significant increases in private and public transfers to households. The paper assesses the relative importance of these transfers for welfare and poverty in Moldova, the poorest country in Europe. A longitudinal analysis based on panel data reveals that private transfers and social insurance transfers are effective in improving welfare and reducing poverty whereas social assistance transfers have little or no effect. Social insurance and social assistance seem to have swapped roles. Social insurance is most relevant for lifting people out of poverty while social assistance -if anything -has a small role in protecting the non-poor from falling into poverty. We also find that the different types of transfers do not crowd-out each other and that social insurance may in fact reinforce the capacity of private transfers to reduce poverty. Such findings have several policy implications for the near future: a) Poor households in FSU transitional economies remain highly vulnerable to shocks in public and private transfers; b) the 2008-2009 recession is likely to expose this vulnerability and result in a surge in poverty larger than expected and c) the social assistance systems remain in great need of pro-poor reforms and cannot currently provide an adequate protection from economic shocks. JEL: H5, I3, O1, P2

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“…For example, interesting application of benefit and behavioral approaches are employed by Younger (1999) and Ravallion et al (1995).…”

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confidence: 99%