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Recessions and the vulnerable

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  • Aiyemo, Babatunde

Abstract

This study evaluates the impact of recessions on households vulnerable to poverty. The results indicate that recessions impact vulnerable households asymmetrically in comparison to the impact of growth on poor households. We also demonstrate that this outcome is significantly influenced by a country’s extent of development. We argue that a direct consequence of the foregoing is that the efficacy of growth in poverty reduction tends to be under-stated by conventional measures of poor households’ responses to economic growth; and that safety nets need to be constructed to incorporate vulnerability to recessions.

Suggested Citation

  • Aiyemo, Babatunde, 2020. "Recessions and the vulnerable," World Development, Elsevier, vol. 132(C).
    • Handle: RePEc:eee:wdevel:v:132:y:2020:i:c:s0305750x20301030
    DOI: 10.1016/j.worlddev.2020.104977
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    2. Patrick Guillaumont & Phu Nguyen‐Van & Thi Kim Cuong Pham & Laurent Wagner, 2023. "Equal opportunity and poverty reduction: How should aid be allocated?," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 550-607, February.

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    More about this item

    Keywords

    Poverty; Economic growth; Income distribution; Vulnerability; Safety nets.;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D69 - Microeconomics - - Welfare Economics - - - Other
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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