Dynamics of Poverty, Labor Market and Public Policies in Latin America
Social Science Research Network
Latin America has traditionally registered very high levels of absolute poverty due in part to a very unequal income distribution and to scarce growth and high macroeconomic instability. However, the response of poverty to changes in those variables differs between countries. For that reason, and given the high occupational and income instability, it is particularly interesting to study the dynamics of poverty in the region. The main objective of this paper is to study poverty dynamics in
... ent Latin American countries, emphasizing a comparative point of view. In particular, the study aims at analyzing to what extent countries with different or similar poverty incidences may show exit and entry rates from and to poverty of different intensity, identifying the importance of diverse events associated to poverty transitions and analyzing the effect of these events on households of different structures and characteristics. This is useful for suggesting general policy recommendations aimed at reducing the high poverty levels prevailing in the region. To attain this objective, a dynamic analysis of panel data from regular household surveys is used in order to assess the importance of poverty entry and exit rates in changes in poverty incidence. The focus is set on the identification of factors associated to poverty mobility, especially those related to labor market instability, demographic changes and public policy.