Inter-temporal Mobility of Poverty Status
The main concern of this chapter is to examine the changes of household from one state of poverty state to another over the 5-year period. Poverty is not static but dynamic, the result of multiple interacting factors that operate from intra-households to the global levels. A static measure of poverty is taken from the observation of income or wealth at a particular point of time and for particular purpose. This type of measurement does not reflect the difference between individuals or relative positions of individuals or households with respect to poverty situations over period. It has been argued that “static” measures of poverty should be supplemented by “dynamic” measures of changes over time, which we shall call measures of mobility (Shorrocks 1978a). Dynamic changes can be measured by using elementary statistics such as the correlation coefficient, rank correlation coefficient. Dynamic change can also be measured by using transition matrices and other simple stochastic processes (Shorrocks 1978a).
KeywordsMarkov Chain Poor Household Markov Chain Model Transition Probability Matrix Upward Mobility
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