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On the urbanization of poverty

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  • Ravallion, Martin

Abstract

The author identifies conditions under which the urban sector's share of the poor population in a developing country will be a strictly increasing and strictly convex function of its share of the total population. Cross-sectional data afor 39 countries and time-series data for for India are consistent with the expected theoretical relationship. The empirical results imply that the poor urbanize faster than the population as a whole. But the experience across developing countries suggests that a majority of the poor will still live in rural areas long after most people in the developing world live in urban areas.
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Suggested Citation

  • Ravallion, Martin, 2002. "On the urbanization of poverty," Journal of Development Economics, Elsevier, vol. 68(2), pages 435-442, August.
    • Handle: RePEc:eee:deveco:v:68:y:2002:i:2:p:435-442
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    References listed on IDEAS

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    1. Haddad, Lawrence & Ruel, Marie T. & Garrett, James L., 1999. "Are Urban Poverty and Undernutrition Growing? Some Newly Assembled Evidence," World Development, Elsevier, vol. 27(11), pages 1891-1904, November.
    2. Lipton, Michael & Ravallion, Martin, 1995. "Poverty and policy," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 41, pages 2551-2657, Elsevier.
    3. Gaurav Datt, 1999. "Has Poverty Declined since Economic Reforms? Statistical Data Analysis," Monash Economics Working Papers archive-31, Monash University, Department of Economics.
    4. Ravallion, Martin & Bidani, Benu, 1994. "How Robust Is a Poverty Profile?," The World Bank Economic Review, World Bank, vol. 8(1), pages 75-102, January.
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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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