Journal
OXFORD BULLETIN OF ECONOMICS AND STATISTICS
Volume 76, Issue 6, Pages 898-923Publisher
WILEY
DOI: 10.1111/obes.12044
Keywords
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Funding
- Ministry of Education of China (MOE) Project of Humanities and Social Science [13YJCZH231]
- Fundamental Research Funds for the Central Universities
- Renmin University of China [13XNK014]
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The objective of our study is to identify patterns and causes of households' transitions into and out of poverty using the long household panel data on rural China in 1989-2009. We propose a discrete-time multi-spell duration model that not only corrects for unobserved heterogeneity, but also addresses the endogeneity due to dynamic selection associated with household's livelihood strategies. The household choosing farming or out-migration as a main livelihood strategy was more likely to escape from persistent poverty than those taking local non-agricultural employment. The present study emphasizes the central role of agriculture in helping the chronically poor escape from poverty.
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