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The Economics of Poverty Traps

Editor

Listed:
  • Barrett, Christopher B.
  • Carter, Michael
  • Chavas, Jean-Paul
  • Carter, Michael R.

Abstract

What circumstances or behaviors turn poverty into a cycle that perpetuates across generations? The answer to this question carries especially important implications for the design and evaluation of policies and projects intended to reduce poverty. Yet a major challenge analysts and policymakers face in understanding poverty traps is the sheer number of mechanisms—not just financial, but also environmental, physical, and psychological—that may contribute to the persistence of poverty all over the world. The research in this volume explores the hypothesis that poverty is self-reinforcing because the equilibrium behaviors of the poor perpetuate low standards of living. Contributions explore the dynamic, complex processes by which households accumulate assets and increase their productivity and earnings potential, as well as the conditions under which some individuals, groups, and economies struggle to escape poverty. Investigating the full range of phenomena that combine to generate poverty traps—gleaned from behavioral, health, and resource economics as well as the sociology, psychology, and environmental literatures—chapters in this volume also present new evidence that highlights both the insights and the limits of a poverty trap lens. The framework introduced in this volume provides a robust platform for studying well-being dynamics in developing economies.

Suggested Citation

  • Barrett, Christopher B. & Carter, Michael & Chavas, Jean-Paul & Carter, Michael R. (ed.), 2018. "The Economics of Poverty Traps," National Bureau of Economic Research Books, University of Chicago Press, number 9780226574301, September.
  • Handle: RePEc:ucp:bknber:9780226574301
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    Citations

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    Cited by:

    1. Teresa Molina Millán & Tania Barham & Karen Macours & John A Maluccio & Marco Stampini, 2019. "Long-Term Impacts of Conditional Cash Transfers: Review of the Evidence," The World Bank Research Observer, World Bank, vol. 34(1), pages 119-159.
    2. Théo Benonnier & Katrin Millock & Vis Taraz, 2019. "Climate change, migration, and irrigation," Working Papers halshs-02107098, HAL.
    3. Molina Millán, Teresa & Macours, Karen & Maluccio, John A. & Tejerina, Luis, 2020. "Experimental long-term effects of early-childhood and school-age exposure to a conditional cash transfer program," Journal of Development Economics, Elsevier, vol. 143(C).
    4. Miguel Niño‐Zarazúa, 2019. "Welfare and Redistributive Effects of Social Assistance in the Global South," Population and Development Review, The Population Council, Inc., vol. 45(S1), pages 3-22, December.
    5. Maria Caridad Araujo & Karen Macours, 2021. "Education, Income and Mobility: Experimental Impacts of Childhood Exposure to Progresa after 20 Years," Working Papers halshs-03364972, HAL.
    6. Supreet Kaur & Sendhil Mullainathan & Suanna Oh & Frank Schilbach, 2021. "Do Financial Concerns Make Workers Less Productive?," NBER Working Papers 28338, National Bureau of Economic Research, Inc.
    7. Daniel R. LaFave & Evan D. Peet & Duncan Thomas, 2020. "Farm Profits, Prices and Household Behavior," NBER Working Papers 26636, National Bureau of Economic Research, Inc.
    8. Willi Semmler & Fabio Della Rossa & Giuseppe Orlando & Gabriel R. Padro Rosario & Levent Kockesen, 2023. "Endogenous Economic Resilience, Loss of Resilience, Persistent Cycles, Multiple Attractors, and Disruptive Contractions," Working Papers 2309, New School for Social Research, Department of Economics.
    9. Nicolas Barrantes & Jhonatan Clausen, 2022. "Does Multidimensional Poverty Affect Depression? Evidence from Peru," Progress in Development Studies, , vol. 22(2), pages 107-129, April.
    10. Macours, Karen & Barham, Tania & Maluccio, John, 2018. "Experimental Evidence of Exposure to a Conditional Cash Transfer During Early Teenage Years: Young Women’s Fertility and Labo," CEPR Discussion Papers 13165, C.E.P.R. Discussion Papers.
    11. Blom, Sylvia A., 2021. "Financial stress and decision-making: Evidence from market vendors in Addis Ababa," 2021 Annual Meeting, August 1-3, Austin, Texas 313928, Agricultural and Applied Economics Association.
    12. Byrne, David P. & Martin, Leslie A., 2021. "Consumer search and income inequality," International Journal of Industrial Organization, Elsevier, vol. 79(C).
    13. Stephen Smith, 2018. "Development Economics Meets the Challenges of Lagging U.S. Areas: Applications to Education, Health and Nutrition, Behavior, and Infrastructure," Working Papers 2018-7, The George Washington University, Institute for International Economic Policy.

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