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Factors Associated with Poverty and Indigence Mobility in Five Latin American Countries

In: Measurement of Poverty, Deprivation, and Economic Mobility

Author

Listed:
  • Luis Beccaria
  • Roxana Maurizio
  • Gustavo Vázquez
  • Manuel Espro
Abstract
Latin America experienced a long period of sustained growth since 2003 that positively impacted social and labor market indicators, including poverty. This paper contributes to the understanding of this process as it carries out a comparative study of poverty and indigence dynamics in five Latin American countries during 2003–2012. Specifically, it extends the analysis of a previously published study by broadening the time coverage and examining indigence mobility. It analyzes the extent to which countries with different levels of poverty (extreme poverty) incidence diverge in terms of exit and entry rates, and identifies the relative importance of the frequency and impact of events associated with poverty transitions. For this, a dynamic analysis of panel data is carried out using regular household surveys. Sizeable rates of poverty and indigence movements were observed in all five countries and it was found that a large proportion of poor or indigent households experienced positive events, mainly related to the labor market; however, only a small fraction of them actually exited poverty and indigence. It appeared, therefore, that even when the economy behaved reasonably well, high levels of labor turnover and income mobility (even of a negative nature) still prevail, mainly associated with the high level of precariousness and the undeveloped system of social protection that characterize the studied countries.

Suggested Citation

  • Luis Beccaria & Roxana Maurizio & Gustavo Vázquez & Manuel Espro, 2015. "Factors Associated with Poverty and Indigence Mobility in Five Latin American Countries," Research on Economic Inequality, in: Measurement of Poverty, Deprivation, and Economic Mobility, volume 23, pages 71-107, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:reinzz:s1049-258520150000023003
    DOI: 10.1108/S1049-258520150000023003
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    More about this item

    Keywords

    Labor market; Latin America; poverty dynamics; public cash transfers; I32; I38; J68; O54;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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