Identifying the Peruvian poverty profiles: A review of poverty dynamics from 1998 to 2010

Sammanfattning: Using a relatively extensive panel data set on poverty –from 1998 to 2010– and information on household member characteristics –from 2007 to 2010–, both coming from a sub-sample of the Peruvian Household National Survey, a poverty dynamic analysis was carried out in this study. A spell approach was applied to calculate transient and persistent poverty and an ordered probit model was estimated to identify factors related to both transient and persistent poverty. The analysis performed showed that both the static and the dynamic approach predict a decreasing trend of poverty between 1998 and 2010, however, static approach significantly underestimates the real magnitude of poverty. In contrast to other studies, the multivariate analysis showed that there is no distinction among the explanatory factors of transient and persistent poverty; instead, that a group of them is more strongly associated to transient poverty while the other group is more strongly associated to the persistent poverty.