Moldova : A Story of Upward Economic Mobility

During the early 2000s, Moldova experienced strong economic growth and poverty and inequality reductions. This paper aims at uncovering the patterns behind these poverty trends by looking at economic mobility and its associated factors in Moldova. The findings build on the synthetic panel approach and allow for a non-anonymous view of the process of poverty reduction. The data used for this country study on Moldova come from the Household Budget Survey, which is conducted on a yearly basis. The paper presents transition matrices to look at the patterns of economic mobility across selected consumption thresholds, as well as descriptive statistics and a linear probability model aimed at identifying correlates of economic mobility. The findings show that the observed poverty reductions happened with little churning, and highlight the importance of education and employment on upward economic mobility in Moldova in the 2000s, as well as the role of public and private transfers.

Bibliographic Details

Main Authors:	Davalos, Maria E., Meyer, Moritz
Language:	English en_US
Published:	World Bank Group, Washington, DC 2015-01
Subjects:	AGRICULTURAL PRODUCTION, AGRICULTURAL SECTOR, ANNUAL GROWTH, ANNUAL GROWTH RATE, AVERAGE GROWTH, BASIC EDUCATION, CAPITAL ACCUMULATION, CHANGES IN POVERTY, CHRONIC POVERTY, CONSUMPTION AGGREGATE, CONSUMPTION GROWTH, CONSUMPTION MEASURE, CONSUMPTION POVERTY, DATA AVAILABILITY, DECLINE IN POVERTY, DEPENDENT VARIABLE, DESCRIPTION, DESCRIPTIVE STATISTICS, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, DIFFERENT REGION, DISAGGREGATED LEVEL, DISTRIBUTIONAL CHANGES, DROUGHT, ECONOMIC DEVELOPMENT, ECONOMIC DOWNTURNS, ECONOMIC GROWTH, EDUCATION LEVEL, EDUCATIONAL ATTAINMENT, EMPIRICAL MODEL, ERROR TERM, ERROR TERMS, ESTIMATED COEFFICIENTS, ESTIMATION RESULTS, ESTIMATION TECHNIQUES, EXPLANATORY VARIABLES, EXTREME POVERTY, EXTREME POVERTY LINE, FEMALE, FEMALE HEADED HOUSEHOLDS, FEMALE-HEADED HOUSEHOLDS, FINANCIAL CRISIS, FIXED EFFECTS, GENDER, GINI COEFFICIENT, GROWTH PROCESS, GROWTH RATE, GROWTH RATES, HEALTH EXPENDITURES, HOUSEHOLD BUDGET, HOUSEHOLD CONSUMPTION, HOUSEHOLD DEMOGRAPHICS, HOUSEHOLD HEAD, HOUSEHOLD HEADS, HOUSEHOLD SIZE, HOUSING, HUMAN CAPITAL, IDIOSYNCRATIC SHOCKS, INCOME, INCOME GROWTH, INDEPENDENT VARIABLES, INEQUALITY, LABOR FORCE, LABOR MARKETS, LABOR MOBILITY, LIVING STANDARDS, MACROECONOMIC ENVIRONMENT, MEAN GROWTH, MEASURING POVERTY, MOBILITY, NATIONAL POVERTY, NATIONAL POVERTY LINE, NEGATIVE IMPACT, NON-POOR HOUSEHOLDS, PER CAPITA GROWTH, POINT ESTIMATES, POLICY AREAS, POLICY DISCUSSION, POLICY IMPLICATIONS, POLICY MAKERS, POLICY PERSPECTIVE, POLICY RESEARCH, POLITICAL INSTABILITY, POOR, POOR HOUSEHOLDS, POVERTY CHANGES, POVERTY DYNAMICS, POVERTY FOCUS, POVERTY LINE, POVERTY MEASURES, POVERTY RATES, POVERTY REDUCTION, POVERTY SERIES, POVERTY THRESHOLD, PRIMARY EDUCATION, PRIVATE TRANSFERS, PRO-POOR, REDUCED POVERTY, REDUCING POVERTY, REDUCTION IN POVERTY, REGIONAL ANALYSIS, REGIONAL CHARACTERISTICS, REGIONAL LEVEL, REGIONAL POVERTY, REGIONAL POVERTY LINE, RURAL, RURAL AREAS, RURAL GROWTH, RURAL HOUSEHOLD, RURAL HOUSEHOLDS, RURAL LABOR, RURAL LABOR MARKET, RURAL PHENOMENON, RURAL POVERTY, SECTORAL COMPOSITION, SIGNIFICANT REDUCTION, SIGNIFICANT REDUCTIONS, SOCIAL PROTECTION, STANDARD DEVIATION, UNEMPLOYMENT, URBAN AREAS, URBAN GROWTH, URBAN POVERTY, WAGE EMPLOYMENT, WELFARE DISTRIBUTION,
Online Access:	http://documents.worldbank.org/curated/en/2015/01/23839214/moldova-story-upward-economic-mobility https://hdl.handle.net/10986/21384
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