Answer to Question #214958 in Economics for Meher

Question

Because it is longitudinal, the KIDS data set permits us to see whether or not poverty is characterized by a lot of churning (i.e., initially poor people tend to escape poverty while their places are taken by initially non-poor people who fall temporarily into poverty), or whether a large element of poverty is chronic (i.e., the same people are poor period after period).

(a)  Calculate the fraction of households that were chronically poor (i.e., poor in all three periods) and transitory poor (i.e., poor in only one period).

(b)  What do you conclude about the level and trends of poverty in South Africa? Did poverty improve or worsen between 1993 and 1998? What about between 1998 and 2004? What about between 1993 and 2004?

 

Answer 1

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