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Household Modeling For The Design Of Poverty Alleviation Strategies

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  • de Janvry, Alain
  • Sadoulet, Elisabeth

Abstract

Insufficient access to assets is the main determinant of poverty. We analyze the role of access to assets in explaining household labor allocation strategies, sources of income, levels of income achieved, and poverty headcount ratios among classes of Mexican rural households. To assess the gains from asset redistribution, we both measure the direct income effects from redistribution and simulate the general equilibrium effects of redistribution in a computable non-separable household model. Results show that land redistribution allows to achieve both equity and efficiency gains. However, there are economies of scale in self-employment in microenterprise, human capital assets for labor market participation, and social capital for international migration, implying conflicts between equity gains and social efficiency in redistributing these assets towards those with lower endowments.

Suggested Citation

  • de Janvry, Alain & Sadoulet, Elisabeth, 1996. "Household Modeling For The Design Of Poverty Alleviation Strategies," CUDARE Working Papers 25121, University of California, Berkeley, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:ucbecw:25121
    DOI: 10.22004/ag.econ.25121
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    References listed on IDEAS

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    1. T. Paul Schultz, 1993. "Investments in the Schooling and Health of Women and Men: Quantities and Returns," Journal of Human Resources, University of Wisconsin Press, vol. 28(4), pages 694-734.
    2. de Janvry, A, et al, 1992. "Structural Adjustment and the Peasantry in Morocco: A Computable Household Model," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 19(4), pages 427-453.
    3. Elisabeth Sadoulet & Alain de Janvry, 1992. "Agricultural Trade Liberalization and Low Income Countries: A General Equilibrium-Multimarket Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 268-280.
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    3. William Maloney & Jairo Mendez, 2004. "Measuring the Impact of Minimum Wages. Evidence from Latin America," NBER Chapters, in: Law and Employment: Lessons from Latin America and the Caribbean, pages 109-130, National Bureau of Economic Research, Inc.
    4. Escobal, Javier, 2001. "The Determinants of Nonfarm Income Diversification in Rural Peru," World Development, Elsevier, vol. 29(3), pages 497-508, March.
    5. Siegel, Paul B. & Alwang, Jeffrey, 1999. "An asset-based approach to social risk management : a conceptual framework," Social Protection Discussion Papers and Notes 21324, The World Bank.
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    7. Javier Escobal, 2000. "Costo de transacción en la agricultura peruana: una primera aproximación a su medición e impacto," Otras investigaciones, Consorcio de Investigación Económica y Social.
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    11. Hernandez, Gustavo Adolfo & Prada, Sergio & Ramirez, Juan Mauricio, 2001. "Impacto Económico del programa de Desarrollo Alternativo del Plan Colombia [Economic Impact of Plan Colombia's Alternative Development Program]," MPRA Paper 17844, University Library of Munich, Germany.
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