[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/2221.html
   My bibliography  Save this paper

The dynamics of poverty and the effectiveness of Poland's safety net (1993-96)

Author

Listed:
  • Okrasa,Wlodzimierz
Abstract
The author analyzes how the incidence of household endowments and the allocation of social benefits affect families'transitions into and out of poverty. Using panel data for 1993-96 from Poland's Household Budget Survey, and a framework based on sample survival analysis techniques, the author evaluates how various policies will affect households with specific characteristics that make them likely to become poor or to move out of poverty under different scenarios (including whether or not they receive a given amount of a particular type of social transfer). He also discusses how non-income sources of welfare, such as savings, credits, and loans, affect the likelihood that families will become or stop being poor. He concludes that family allowances and unemployment benefits, the two major social programs analyzed, have significant but different effects on different groups of households (characterized in terms of age, gender, marital status, and educational attainment of the head of household; the size, type, location, and sector of employment of the family or household; and the year in which the household fell into poverty). If the share of the family allowances in total household income were reduced by 1 percent, for example, the average length of poverty would be increased by roughly 2 percent. But a 1 percent change in unemployment benefits would yield a 3 percent change in the average duration of poverty. Differences in hazard rates for various subgroups would be even greater. Households in villages were much more likely to fall into poverty than households in cities and large towns, but the poor in towns and cities had more difficulty exiting poverty. There was generally less poverty mobility among households headed by public sector employees than among those headed byemployees in the private sector. Families with three or more children and one-parent families (and grandparents with children) faced the greatest risk of being poor; single-person households and childless married couples were the least endangered . Small nuclear families with one or two children and families without children fell between these two extremes.

Suggested Citation

  • Okrasa,Wlodzimierz, 1999. "The dynamics of poverty and the effectiveness of Poland's safety net (1993-96)," Policy Research Working Paper Series 2221, The World Bank.
    • Handle: RePEc:wbk:wbrwps:2221
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1999/12/02/000094946_9911120530172/Rendered/PDF/multi_page.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Glewwe, P. & Hall, G., 1995. "Who is Most Vulnerable to Macroeconomic Shocks? Hypotheses Tests Using Panel Data from Peru," Papers 117, World Bank - Living Standards Measurement.
    2. Deaton, Angus, 1991. "Saving and Liquidity Constraints," Econometrica, Econometric Society, vol. 59(5), pages 1221-1248, September.
    3. repec:bla:revinw:v:35:y:1989:i:3:p:225-43 is not listed on IDEAS
    4. Harold Alderman & Christina H. Paxson, 1994. "Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries," International Economic Association Series, in: Edmar L. Bacha (ed.), Economics in a Changing World, chapter 3, pages 48-78, Palgrave Macmillan.
    5. Keane, Michael & Prasad, Eswar, 1998. "Consumption and Income Inequality in Poland During the Economic Transition," Working Papers 98-38, C.V. Starr Center for Applied Economics, New York University.
    6. Rutkowski, Michael [editor], 1999. "Russia's social protection malaise : key reform priorities as a response to the present crisis," Social Protection Discussion Papers and Notes 20125, The World Bank.
    7. Lanjouw, Peter & Ravallion, Martin, 1995. "Poverty and Household Size," Economic Journal, Royal Economic Society, vol. 105(433), pages 1415-1434, November.
    8. Duncan, Greg J & Gustafsson, Bjorn & Hauser, Richard & Schmauss, Gunther & Messinger, Hans & Muffels, Ruud & Nolan, Brian, 1993. "Poverty Dynamics in Eight Countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 6(3), pages 215-234.
    9. Jan Rutkowski, 1996. "High skills pay off: the changing wage structure during economic transition in Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(1), pages 89-112, May.
    10. Patricia Ruggles & Roberton Williams, 1989. "Longitudinal Measures Of Poverty: Accounting For Income And Assets Over Time," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 35(3), pages 225-243, September.
    11. Atkinson, A. B. & Sutherland, H., 1998. "Microsimulation and Policy Debate: A Case Study of the Minimum Pension Guarantee in Britain," Cambridge Working Papers in Economics 9815, Faculty of Economics, University of Cambridge.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Miriam Beblo & Stanislawa Golinowska & Charlotte Lauer & Katarzyna Pietka & Agnieszka Sowa, 2002. "Poverty Dynamics in Poland. Selected Quantitative Analyses," CASE Network Reports 0054, CASE-Center for Social and Economic Research.
    2. Lucia Mangiavacchi & Paolo Verme, 2013. "Minimum income in a transition economy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 21(4), pages 683-712, October.
    3. Miriam Beblo & Charlotte Lauer, 2004. "Do family resources matter? Educational attainment during transition in Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(3), pages 537-558, September.
    4. Luttmer,Erzo F.P., 2001. "Measuring poverty dynamics and inequality in transition economies - disentangling real events from noisy data," Policy Research Working Paper Series 2549, The World Bank.
    5. Chandika Gunasinghe, 2010. "The Significance of Capital Assets in Moving Out of Poverty," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 11(2), pages 245-285, September.
    6. World Bank, 2001. "Poland's Labor Market : The Challenge of Job Creation," World Bank Publications - Books, The World Bank Group, number 13982.
    7. Włodzimierz Okrasa, 2012. "Statistics and Sociology: The mutually-supportive development from the perspective of interdisciplinarization of social research," Statistics in Transition new series, Główny Urząd Statystyczny (Polska), vol. 13(2), pages 365-386, June.
    8. Verme, Paolo, 2008. "Social assistance and poverty reduction in Moldova, 2001-2004 an impact evaluation," Policy Research Working Paper Series 4658, The World Bank.
    9. Lucia Mangiavacchi & Paolo Verme, 2009. "Evaluating Pro-poor Transfers When Targeting is Weak: The Albanian Ndihma Ekonomike Program Revisited," Working Papers - Economics wp2009_08.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    10. Paolo Verme, 2011. "The Poverty Reduction Capacity of Public and Private Transfers in Transition," Journal of Development Studies, Taylor & Francis Journals, vol. 47(6), pages 870-893.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Okrasa, Wlodzimierz, 1999. "Who avoids and who escapes from poverty during transition? - evidence from Polish panel data, 1993-96," Policy Research Working Paper Series 2218, The World Bank.
    2. Glewwe, Paul & Hall, Gillette, 1998. "Are some groups more vulnerable to macroeconomic shocks than others? Hypothesis tests based on panel data from Peru," Journal of Development Economics, Elsevier, vol. 56(1), pages 181-206, June.
    3. Kazianga, Harounan & Udry, Christopher, 2006. "Consumption smoothing? Livestock, insurance and drought in rural Burkina Faso," Journal of Development Economics, Elsevier, vol. 79(2), pages 413-446, April.
    4. Jalan, Jyotsna & Ravallion, Martin, 2001. "Behavioral responses to risk in rural China," Journal of Development Economics, Elsevier, vol. 66(1), pages 23-49, October.
    5. Espen Villanger, 2003. "The effects of disasters on income mobility: Bootstrap inference and measurement error simulations," CMI Working Papers WP 2003:6, CMI (Chr. Michelsen Institute), Bergen, Norway.
    6. Malacarne, J.G. & Paul, L.A., 2022. "Do the benefits of improved management practices to nutritional outcomes “dry up” in the presence of drought? Evidence from East Africa," Food Policy, Elsevier, vol. 113(C).
    7. Besley, Timothy, 1995. "Savings, credit and insurance," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 36, pages 2123-2207, Elsevier.
    8. Patrick S. Ward & Gerald E. Shively, 2015. "Migration and Land Rental as Responses to Income Shocks in Rural China," Pacific Economic Review, Wiley Blackwell, vol. 20(4), pages 511-543, October.
    9. Filmer, Deon & Pritchett, Lant, 1998. "Estimating wealth effects without expenditure data - or tears : with an application to educational enrollments in states of India," Policy Research Working Paper Series 1994, The World Bank.
    10. Newman, Carol & Tarp, Finn, 2020. "Shocks and agricultural investment decisions," Food Policy, Elsevier, vol. 94(C).
    11. Anderson, Kathryn & Pomfret, Richard, 2000. "Living Standards during Transition to a Market Economy: The Kyrgyz Republic in 1993 and 1996," Journal of Comparative Economics, Elsevier, vol. 28(3), pages 502-523, September.
    12. Omonona, Bolarin T., 2009. "Quantitative analysis of rural poverty in Nigeria:," NSSP working papers 9, International Food Policy Research Institute (IFPRI).
    13. Jin, Ling & Chen, Kevin Z. & Yu, Bingxin & Huang, Zuhui, 2011. "How prudent are rural households in developing transition economies:," IFPRI discussion papers 1127, International Food Policy Research Institute (IFPRI).
    14. Alderman, Harold, 1996. "Saving and economic shocks in rural Pakistan," Journal of Development Economics, Elsevier, vol. 51(2), pages 343-365, December.
    15. Jeong-Joon Lee & Yasuyuki Sawada, 2005. "Precautionary Saving under Liquidity Constraints: Evidence from Rural Pakistan (Published in "Journal of Development Economics". )," CARF F-Series CARF-F-051, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    16. Fafchamps, Marcel & Udry, Christopher & Czukas, Katherine, 1998. "Drought and saving in West Africa: are livestock a buffer stock?," Journal of Development Economics, Elsevier, vol. 55(2), pages 273-305, April.
    17. McCulloch, Neil & Calandrino, Michele, 2003. "Vulnerability and Chronic Poverty in Rural Sichuan," World Development, Elsevier, vol. 31(3), pages 611-628, March.
    18. Lee, Jeong-Joon & Sawada, Yasuyuki, 2010. "Precautionary saving under liquidity constraints: Evidence from rural Pakistan," Journal of Development Economics, Elsevier, vol. 91(1), pages 77-86, January.
    19. Bundervoet, Tom, 2010. "Assets, Activity Choices, and Civil War: Evidence from Burundi," World Development, Elsevier, vol. 38(7), pages 955-965, July.
    20. Jalan, Jyotsna & Ravallion, Martin, 1999. "Are the poor less well insured? Evidence on vulnerability to income risk in rural China," Journal of Development Economics, Elsevier, vol. 58(1), pages 61-81, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:2221. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.