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This study explores the economic context and welfare ordering of groups in Madagascar from 1999 to 2005, analyzing the impact of various factors like education, land holdings, and household head gender on household consumption. The findings highlight persistent horizontal inequalities and policy implications for addressing these disparities.
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Evolution of Horizontal Inequalities in Madagascar, 1999- 2005 David Stifel (Lafayette) Felix Forster (Lafayette) Chris Barrett (Cornell) Oxford University April, 2008
Overview • Introduction • Economic Context • Data and Group Dimensions • Welfare Ordering of Groups • Econometric Estimates & Differential Returns to Assets • Concluding Remarks
The Setting: Madagascar Economic Context: • Sustained growth in late 1990s • 2001-02: Political crisis • General strikes • Destruction of key infrastructure • 2004-05: • Strong Depreciation of Currency • Rise in international oil and rice prices • Phase-out of Multi-Fibre Agreement • Average Growth: 5 %
Data • Enquête Périodique Auprès des Ménages (EPM), • Nationally representative integrated household survey • Collected by Institut National de la Statistique • Years: 1999; 2001; 2005 • Sample Size: 5,120; 5,080; 11,781 • Repeated Cross-sections
Data • Commune Census, 2001 • Conducted by: • Ilo program of Cornell University • National Malagasy agricultural research institute (FOFIFA) • INSTAT • Covered 1,385 out of 1,392 communes • Used for Remoteness
Measures • Welfare: Per Capita HH Expenditure (Consumption) • Remoteness: Cost of transporting 50kg sack of rice to market – 5 Quintiles + Urban • Gender of HH head: temporarily, permanently female-headed, male-headed • Education of HH head: highest educational attainment – none, primary, secondary(+) • Land holdings: less than 1 HA, 1 – 5 HA, 5+ HA • Ethnicity: Merina ethnic group, other
Distribution of Per Capita Consumption by Education of Household Head
Distribution of Household Expenditure by Temporary/Permanent Female-Headedness
Differential Marginal Effects of Education on Per Capita Consumption
Differential Marginal Effects of Education on Per Capita Consumption
Differential Marginal Effects of Land Holdings on Per Capita Consumption
Differential Marginal Effects of Land Holdings on Per Capita Consumption
Conclusion Three Key Messages • Core group of persistently poor households: • Uneducated • Land poor • Rural & remote • Female-headed • Vertical Inequalities within groups • Persistent horizontal inequalities associated with multiple different identities • Some offsetting or even overcoming (women’s education) • Some reinforcing (land poor)
Conclusion Policy implications: • Gender & Marital Status – what mechanisms? • Land redistribution – not politically feasible • Education & Remoteness – amenable to interventions • Targeted interventions • Unidimensional vs. multidimensional • Education – offset gender & geographic disadvantages