Poverty Dynamics in Bhutan, 2017–2022
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Washington, DC: World Bank
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This paper examines the dynamics of
poverty in Bhutan between 2017 and 2022, utilizing
cross-sectional data from the Bhutan Living Standards
Surveys. The paper constructs synthetic panels and estimates
poverty transition probabilities. Three main findings
emerge. First, poverty turnover in Bhutan is low overall
(not many people, as a share of the population, moved in and
out of poverty during the period considered). Second,
chronic poverty, defined as the probability of remaining
poor in both years (2017 and 2022), was also low, both in
absolute terms and compared to other countries for which
similar estimates are available. The probability of being
poor in both years is 6 percent of households in Bhutan,
compared to over 15 percent in India and 17.5 percent in
Pakistan. Third, upward poverty mobility (the probability of
escaping poverty between 2017 and 2022) is 20 times higher
than downward poverty mobility.
Palabras clave
POVERTY DYNAMICS, ECONOMIC MOBILITY, SYNTHETIC PANEL METHODS