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Moldova : a story of upward economic mobility

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  • Davalos, Maria E.
  • Meyer, Moritz

Abstract

During the early 2000s, Moldova experienced strong economic growth and poverty and inequality reductions. This paper aims at uncovering the patterns behind these poverty trends by looking at economic mobility and its associated factors in Moldova. The findings build on the synthetic panel approach and allow for a non-anonymous view of the process of poverty reduction. The data used for this country study on Moldova come from the Household Budget Survey, which is conducted on a yearly basis. The paper presents transition matrices to look at the patterns of economic mobility across selected consumption thresholds, as well as descriptive statistics and a linear probability model aimed at identifying correlates of economic mobility. The findings show that the observed poverty reductions happened with little churning, and highlight the importance of education and employment on upward economic mobility in Moldova in the 2000s, as well as the role of public and private transfers.

Suggested Citation

  • Davalos, Maria E. & Meyer, Moritz, 2015. "Moldova : a story of upward economic mobility," Policy Research Working Paper Series 7167, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7167
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    References listed on IDEAS

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    4. Cameron,A. Colin & Trivedi,Pravin K., 2005. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9780521848053, November.
    5. Dang, Hai-Anh & Lanjouw, Peter & Luoto, Jill & McKenzie, David, 2014. "Using repeated cross-sections to explore movements into and out of poverty," Journal of Development Economics, Elsevier, vol. 107(C), pages 112-128.
    6. Cruces, Guillermo & Lanjouw, Peter & Lucchetti, Leonardo & Perova, Elizaveta & Vakis, Renos & Viollaz, Mariana, 2011. "Intra-generational mobility and repeated cross-sections : a three-country validation exercise," Policy Research Working Paper Series 5916, The World Bank.
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    Cited by:

    1. World Bank Group, 2015. "Poverty and Economic Mobility in the Kyrgyz Republic," World Bank Publications - Reports 22967, The World Bank Group.
    2. World Bank Group, 2016. "Poverty Reduction and Shared Prosperity in Moldova," World Bank Publications - Reports 24734, The World Bank Group.

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    More about this item

    Keywords

    Rural Poverty Reduction; Achieving Shared Growth; Regional Economic Development; Housing&Human Habitats;
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