RESEARCH QUESTION

What does the evidence from detailed panel data from households in rural Ethiopia show about rises in income?

ABOUT THE PROJECT

A country in which detailed panel data have been collected by GPRG researchers is Ethiopia. What does the evidence for rural Ethiopia show? The availability of panel data means that it is possible to investigate if the households in the panel have seen rises in income. It is argued that the main factors driving income changes are relative price changes resulting in changes in the returns to land, labour, human capital and location. The experience of the poor is mixed. For some of the poor their poverty was persistent. These findings are particularly important as the poor in Ethiopia are amongst the poorest people in the continent.

RESEARCHERS

Stefan Dercon

CSAE, University of Oxford

Pramila Krishnan

CSAE, University of Oxford

DOCUMENTS AND LINKS

The Impact of Economic Reform on Rural Households in Ethiopia

Stefan Dercon

Poverty Dynamics in Africa Series

The World Bank, Washington D.C., 2002

Changes in poverty in villages in rural Ethiopia: 1989-95

Stefan Dercon and Pramila Krishnan

in A. Booth and P. Mosley (eds), The New Poverty Strategies, Palgrave MacMillan, London, 2003