Essays on Poverty Reduction in Latin America
The third paper sheds light on the spatial distribution of poverty, and the intra-regional dynamics of income distribution within a country (Ecuador). The paper assesses the importance of geographical, physical, and human capital variables in explaining differences in consumption growth in Ecuador--- a country characterized by significant geographical and cultural heterogeneity. In particular, the paper uses novel pseudo-panel data techniques to analyze the link between geographic factors and household welfare. The evidence indicates that geographical variables are important determinants of the household consumption growth after accounting for household characteristics such as education and labor market experience. Furthermore, the results indicate that individuals with similar characteristics experience increments in growth levels differently, depending on where they reside. Altogether, the results indicate that in other to reduce poverty, efficient and equitable government policies should take into account the role of geography and geographical diversity, including the regional distribution and provision of public goods.
University of Illinois - Urbana-Champaign
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University of Illinois at Urbana-Champaign