Why Do People Stay Poor?

tags
Economics

Notes

1. Introduction

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The alternative view is that the poor face different opportunities and hence do low-earning jobs because they are born poor. That is, the poor are stuck in a poverty trap.

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one-off transfer of productive assets and training

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Ownership of physical capital is what sets apart rich and poor in these villages.

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small transfers would only allow a small share of households to escape poverty – those that are already close to the threshold

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We have shown that poverty traps exist. People are poor because of a lack of opportunity.

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