IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v160y2022i1d10.1007_s11205-021-02808-2.html
   My bibliography  Save this article

Climbing up the Ladder and Watching Out for the Fall: Poverty Dynamics in Rural Bangladesh

Author

Listed:
  • Akhter U. Ahmed

    (International Food Policy Research Institute (IFPRI))

  • Salauddin Tauseef

    (University of Manchester)

Abstract

This paper analyses poverty dynamics in rural Bangladesh using a nationally representative panel dataset of 5,020 rural households interviewed in 2011/12, 2015, and 2019. Findings show that education, savings, assets, international remittance, non-farm employment, substantial safety net transfers, and women’s empowerment are key factors in breaking chronic and transient poverty. Rural infrastructure development and market access through improved connectivity are also critical for sustained poverty alleviation. On the other hand, woman-headed households (widowed, divorced or abandoned) are found to be particularly vulnerable to impoverishments. The results are consistent across multinomial logit, simultaneous quantile regression, and panel fixed effects models. Thus, policies and programs that address the determinants of chronic and transient poverty identified in this study hold promise for sustained poverty reduction in rural Bangladesh.

Suggested Citation

  • Akhter U. Ahmed & Salauddin Tauseef, 2022. "Climbing up the Ladder and Watching Out for the Fall: Poverty Dynamics in Rural Bangladesh," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(1), pages 309-340, February.
  • Handle: RePEc:spr:soinre:v:160:y:2022:i:1:d:10.1007_s11205-021-02808-2
    DOI: 10.1007/s11205-021-02808-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-021-02808-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11205-021-02808-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Harold Alderman & Jere Behrman & Hans-Peter Kohler & John A. Maluccio & Susan Watkins, 2001. "Attrition in Longitudinal Household Survey Data," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 5(4), pages 79-124.
    2. Cesar Calvo & Stefan Dercon, 2007. "Chronic Poverty and All That: The Measurement of Poverty over Time," CSAE Working Paper Series 2007-04, Centre for the Study of African Economies, University of Oxford.
    3. Sen, Binayak, 2003. "Drivers of Escape and Descent: Changing Household Fortunes in Rural Bangladesh," World Development, Elsevier, vol. 31(3), pages 513-534, March.
    4. Peter Davis & Bob Baulch, 2011. "Parallel Realities: Exploring Poverty Dynamics Using Mixed Methods in Rural Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 47(1), pages 118-142.
    5. Mckay, Andrew & Lawson, David, 2003. "Assessing the Extent and Nature of Chronic Poverty in Low Income Countries: Issues and Evidence," World Development, Elsevier, vol. 31(3), pages 425-439, March.
    6. Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6, National Bureau of Economic Research, Inc.
    7. Hulme, David & Shepherd, Andrew, 2003. "Conceptualizing Chronic Poverty," World Development, Elsevier, vol. 31(3), pages 403-423, March.
    8. John W. Mellor, 2017. "The Economic Transformation," Palgrave Studies in Agricultural Economics and Food Policy, in: Agricultural Development and Economic Transformation, chapter 0, pages 17-28, Palgrave Macmillan.
    9. Abdulnasser Hatemi-J & Gazi Salah Uddin, 2014. "On the causal nexus of remittances and poverty reduction in Bangladesh," Applied Economics, Taylor & Francis Journals, vol. 46(4), pages 374-382, February.
    10. Bob Baulch & John Hoddinott, 2000. "Economic mobility and poverty dynamics in developing countries," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 1-24.
    11. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1.
    12. Joseph V. Balagtas & Humnath Bhandari & Ellanie R. Cabrera & Samarendu Mohanty & Mahabub Hossain, 2014. "Did the commodity price spike increase rural poverty? Evidence from a long-run panel in Bangladesh," Agricultural Economics, International Association of Agricultural Economists, vol. 45(3), pages 303-312, May.
    13. Jyotsna Jalan & Martin Ravallion, 2000. "Is transient poverty different? Evidence for rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 82-99.
    14. Nigar Nargis & Mahabub Hossain, 2006. "Income dynamics and pathways out of rural poverty in Bangladesh, 1988–2004," Agricultural Economics, International Association of Agricultural Economists, vol. 35(s3), pages 425-435, November.
    15. Saurav Dev Bhatta & Suman K. Sharma, 2011. "The Determinants and Consequences of Chronic and Transient Poverty in Nepal, 1995–96 to 2003–04," Chapters, in: Bob Baulch (ed.), Why Poverty Persists, chapter 4, Edward Elgar Publishing.
    16. Malapit, Hazel J. & Sraboni, Esha & Quisumbing, Agnes R. & Ahmed, Akhter U., 2015. "Gender empowerment gaps in agriculture and children’s well-being in Bangladesh:," IFPRI discussion papers 1470, International Food Policy Research Institute (IFPRI).
    17. John W. Mellor, 2017. "Agricultural Development and Economic Transformation," Palgrave Studies in Agricultural Economics and Food Policy, Palgrave Macmillan, number 978-3-319-65259-7.
    18. Alderman, Harold & Garcia, Marito, 1993. "Poverty, household food security, and nutrition in rural Pakistan:," Research reports 96, International Food Policy Research Institute (IFPRI).
    19. Hansen, Lars Peter & Singleton, Kenneth J, 1982. "Generalized Instrumental Variables Estimation of Nonlinear Rational Expectations Models," Econometrica, Econometric Society, vol. 50(5), pages 1269-1286, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Matsuura,Masanori & Md Saiful Islam,Abu Hayat & Tauseef,Salauddin, 2023. "Mobile phone ownership, income diversification, and household welfare in rural Bangladesh," IDE Discussion Papers 875, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Homma, Kirara & Islam, Abu Hayat Md. Saiful & Matsuura, Masanori & Legesse Debela, Bethelhem, 2024. "Weather shocks and child nutritional status in rural Bangladesh: Does labor allocation have a role to play?," DARE Discussion Papers 2401, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    3. Rishi Kumar, 2022. "Household poverty dynamics in tribal Madhya Pradesh, India: A case study of 54 villages," Poverty & Public Policy, John Wiley & Sons, vol. 14(2), pages 184-203, June.
    4. Masanori Matsuura‐Kannari & Yir‐Hueih Luh & Abu Hayat Md. Saiful Islam, 2023. "Weather shocks, livelihood diversification, and household food security: Empirical evidence from rural Bangladesh," Agricultural Economics, International Association of Agricultural Economists, vol. 54(4), pages 455-470, July.
    5. Islam, Masanori Matsuura Yir-Huieh Luh Abu Hayat Md. Saiful, 2021. "Climate Variability, Livelihood Diversification, and Household Food Security in Bangladesh," 2021 ASAE 10th International Conference (Virtual), January 11-13, Beijing, China 329402, Asian Society of Agricultural Economists (ASAE).
    6. Archana Dang & Mausumi Das & Indrani Gupta, 2023. "COVID-19 And The Unequal Distribution Of Poverty Risks: Evidence From Urban India," IEG Working Papers 458, Institute of Economic Growth.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rishi Kumar, 2022. "Household poverty dynamics in tribal Madhya Pradesh, India: A case study of 54 villages," Poverty & Public Policy, John Wiley & Sons, vol. 14(2), pages 184-203, June.
    2. Thomas, Anne-Claire & Gaspart, Frédéric, 2015. "Does Poverty Trap Rural Malagasy Households?," World Development, Elsevier, vol. 67(C), pages 490-505.
    3. Bigsten, Arne & Shimeles, Abebe, 2008. "Poverty Transition and Persistence in Ethiopia: 1994-2004," World Development, Elsevier, vol. 36(9), pages 1559-1584, September.
    4. Christelle Swanepoel, 2005. "Poverty and Poverty Dynamics in Rural Ethiopia," Working Papers 03/2005, Stellenbosch University, Department of Economics.
    5. Alma Kudebayeva, 2018. "Chronic Poverty in Kazakhstan," CERGE-EI Working Papers wp627, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    6. Hoy, Michael & Zheng, Buhong, 2011. "Measuring lifetime poverty," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2544-2562.
    7. Jennifer Fernández-Ramos & Ana K. Garcia-Guerra & Jorge Garza-Rodriguez & Gabriela Morales-Ramirez, 2016. "The dynamics of poverty transitions in Mexico," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 43(11), pages 1082-1095, November.
    8. Klasen, Stephan & Günther, Isabel, 2007. "Measuring Chronic Non-Income Poverty," Proceedings of the German Development Economics Conference, Göttingen 2007 10, Verein für Socialpolitik, Research Committee Development Economics.
    9. David Lawson & Andy Mckay & John Okidi, 2006. "Poverty persistence and transitions in Uganda: A combined qualitative and quantitative analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 42(7), pages 1225-1251.
    10. Paul Shaffer, 2018. "Causal pluralism and mixed methods in the analysis of poverty dynamics," WIDER Working Paper Series 115, World Institute for Development Economic Research (UNU-WIDER).
    11. Isabel Günther & Johannes K. Maier, 2014. "Poverty, Vulnerability, and Reference-Dependent Utility," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(1), pages 155-181, March.
    12. Ugo Gentilini1, 2005. "Mainstreaming Safety Nets in the Social Protection Policy Agenda: A New Vision or the Same Old Perspective?," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 2(2), pages 133-157.
    13. Mai, Tung & Mahadevan, Renuka, 2016. "A research note on the poverty dynamics and cost of poverty inequality: Case study of Indonesia," Economic Analysis and Policy, Elsevier, vol. 49(C), pages 100-107.
    14. Michael Hoy & Brennan Thompson & Buhong Zheng, 2012. "Empirical issues in lifetime poverty measurement," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(2), pages 163-189, June.
    15. Stefan Dercon & Joseph S. Shapiro, 2007. "Moving On, Staying Behind, Getting Lost: Lessons on poverty mobility from longitudinal data," Economics Series Working Papers GPRG-WPS-075, University of Oxford, Department of Economics.
    16. Walelign, Solomon Zena & Charlery, Lindy & Smith-Hall, Carsten & Chhetri, Bir Bahadur Khanal & Larsen, Helle Overgaard, 2016. "Environmental income improves household-level poverty assessments and dynamics," Forest Policy and Economics, Elsevier, vol. 71(C), pages 23-35.
    17. Laura Camfield & Keetie Roelen, 2013. "Household Trajectories in Rural Ethiopia: What Can a Mixed Method Approach Tell Us About the Impact of Poverty on Children?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(2), pages 729-749, September.
    18. Paul Shaffer, 2018. "Causal pluralism and mixed methods in the analysis of poverty dynamics," WIDER Working Paper Series wp-2018-115, World Institute for Development Economic Research (UNU-WIDER).
    19. World Bank, 2020. "Ethiopia Poverty Assessment," World Bank Publications - Reports 33544, The World Bank Group.

    More about this item

    Keywords

    Rural poverty; Panel data; Poverty dynamics; Non-farm employment; Social safety net; Women’s empowerment; Bangladesh;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:160:y:2022:i:1:d:10.1007_s11205-021-02808-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.