Poverty determinants in Isla Grande

This document contrasts the estimations of a nonlinear fixed effects model for determining poverty with a linear fixed event model for income generation for a sample of 136 persons using data panels for 2007 and 2009. The results for the estimation suggest the existence of a poverty trap. The educat...

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Bibliographic Details
Published in:Semestre económico 2011-01, Vol.14 (28)
Main Author: Bustos, William Orlando Prieto
Format: Article
Language:eng ; por ; spa
Subjects:
Econometrics
Economic development
Economic models
Economic statistics
Economic theory
Estimating techniques
Human capital
Poverty
Studies
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Summary:This document contrasts the estimations of a nonlinear fixed effects model for determining poverty with a linear fixed event model for income generation for a sample of 136 persons using data panels for 2007 and 2009. The results for the estimation suggest the existence of a poverty trap. The education level, the subsidized health system, self-employment and informal contracts result significant in the explanation of variations in the income per capita. Likewise the working experience, the education level, the informal contracts and the increase in economic activities result significant in the poverty explanation. Especially, the impacts in variables of poverty education and income generation are limited to the short labor demand and the small relative importance to human capital and working experience in the determination for better wages. [PUBLICATION ABSTRACT]
ISSN:0120-6346
2248-4345