Impact of High Inflation on Household Livelihoods in Urban South Sudan
Using panel data, this paper analyzes the impact of high inflation on household livelihoods in urban South Sudan. Based on a difference-in-difference approach, inflation is found to have a strong negative impact on urban poverty between 2015 and 2017, mainly driven by the increase of non-food prices. Food price inflation had a negative and statistically significant impact on girls’ primary and secondary school attendance, while proximity to school is very important for girls’ school attendance. Increases in food prices led to a decline in labor force participation, increasing unemployment among urban residents. Inflation is exacerbating food insecurity and hunger, particularly for the poorest households who are more vulnerable to hunger. Inflation has also negatively affected households’ perceptions of welfare. These changes in welfare are mostly explained by the period of near hyper-inflation in 2017. Addressing high inflation must be at the center of efforts to reduce poverty and hunger to improve the welfare of the people of South Sudan.
Main Authors: | , , |
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Format: | Working Paper biblioteca |
Language: | English English |
Published: |
World Bank, Washington, DC
2022-10
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Subjects: | URBAN LIVELIHOODS, INFLATION, URBAN POVERTY, POVERTY REDUCTION STRATEGY, EFFECTIVE WELFARE EFFORTS, HOUSEHOLD SURVEYS, HYPERINFLATION, INFLATION AND GIRLS EDUCATION, |
Online Access: | http://documents.worldbank.org/curated/en/099512010182234773/IDU00174fd810344a04b350b2390846aa712269f http://hdl.handle.net/10986/38182 |
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Summary: | Using panel data, this paper analyzes
the impact of high inflation on household livelihoods in
urban South Sudan. Based on a difference-in-difference
approach, inflation is found to have a strong negative
impact on urban poverty between 2015 and 2017, mainly driven
by the increase of non-food prices. Food price inflation had
a negative and statistically significant impact on girls’
primary and secondary school attendance, while proximity to
school is very important for girls’ school attendance.
Increases in food prices led to a decline in labor force
participation, increasing unemployment among urban
residents. Inflation is exacerbating food insecurity and
hunger, particularly for the poorest households who are more
vulnerable to hunger. Inflation has also negatively affected
households’ perceptions of welfare. These changes in welfare
are mostly explained by the period of near hyper-inflation
in 2017. Addressing high inflation must be at the center of
efforts to reduce poverty and hunger to improve the welfare
of the people of South Sudan. |
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