Economic mobility and poverty dynamics in developing countries

Abstract

This study provides an introduction to this special issue of The Journal of Development Studies on economic mobility and poverty dynamics in developing countries. In addition to providing a conceptual framework, it outlines how the contributions fit into the extant literature. A series of regularities emerge across these studies. The poor consist of those who are always poor - poor at all dates - and those who move in and out of poverty, with the latter group tending to be strikingly large. Such movements in and out of poverty are apparent when looking at poverty in either absolute or relative terms. Changes in returns to endowments can be a potent source of increased incomes. Finally, seemingly transitory shocks can have long-term consequences. The study concludes by drawing out the policy implications of these regularities.