Poverty Transition and Persistence in Ethiopia

Abstract

Based on a rural and urban data set from Ethiopia, exiting from or re-entering poverty was found to depend on the time spent in or out of poverty. In comparison to urban areas, it was easier to exit or re-enter rural poverty.  However, exiting poverty was more difficult the longer households were in that state, even more in urban than rural areas. In addition, the average time spent in poverty following a poverty spell is quite long for a typical household. Time-varying and other household characteristics were examined in the context of exiting and re-entering into poverty. Features of chronic poverty and vulnerability were also analysed and the policy implications discussed.