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Cited by 1,703Income, Poverty, and InequalityPoverty, Education, and Child WelfareMicrofinance and Financial Inclusion

The Economic Lives of the Poor

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Banerjee, Abhijit V, Duflo, Esther·2007·Journal of Economic Perspectives
DOI 10.1257/jep.21.1.141PMC PMC2638067
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Abstract

The 1990 World Development Report from the World Bank defined the “extremely poor” people of the world as those who are currently living on no more than $1 per day per person. But how actually does one live on less than $1 per day? This essay is about the economic lives of the extremely poor: the choices they face, the constraints they grapple with, and the challenges they meet. A number of recent data sets and a body of new research allow us to start building an image of the way the extremely poor live their lives. Our discussion builds on household surveys conducted in 13 countries: Cote d'Ivoire, Guatemala, India, Indonesia, Mexico, Nicaragua, Pakistan, Panama, Papua New Guinea, Peru, South Africa, Tanzania, and Timor Leste (East Timor). These surveys provide detailed information on extremely poor households around the world, from Asia to Africa to Latin America, including information on what they consume, where they work, and how they save and borrow. We consider the extremely poor—those living in households where the consumption per capita is less than $1.08 per person per day—as well as the merely “poor”—defined as those who live under $2.16 a day—using 1993 purchasing power parity as benchmark. In keeping with convention, we call these the $1 and $2 dollar poverty lines, respectively.

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Cited by

Sorted by citations

Authors
Banerjee, A. V., & Duflo, E.
Affiliations
Abdul Latif Jameel Poverty Action Lab (US)
ORCID
Venue
Journal of Economic Perspectives
Publisher
American Economic Association
Published
2007-01-01
Volume
21
Issue
1
Pages
141-167
ISSN
0895-3309 (ISSN-L)
DOI
10.1257/jep.21.1.141
PMC
PMC2638067
OpenAlex
W3123192902
Cited by
1,703
References
2
Citations by year
2026: 101 · 2025: 108 · 2024: 86 · 2023: 94 · 2022: 100 · 2021: 116 · 2020: 113 · 2019: 95 · 2018: 78 · 2017: 85 · 2016: 85 · 2015: 101 · 2014: 98 · 2013: 103 · 2012: 82
FWCI
194.58
Type
journal article
Language
en
Open access
Locations
  • The Journal of Economic Perspectives (publishedVersion)
  • PubMed (publishedVersion)
  • PubMed Central (acceptedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
Funders
National Institute on Aging (P01AG005842)
Topics
  • Social Sciences › Sociology and Political Science › Income, Poverty, and Inequality
  • Social Sciences › Safety Research › Poverty, Education, and Child Welfare
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Microfinance and Financial Inclusion
Keywords
extreme poverty, household consumption, poverty line, labor supply, consumption patterns, household surveys, developing countries

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