Extremely Poor

Abstract: This paper uses survey data from 13 countries to document the economic lives of the poor (those living on less than $2 dollar per day per capita at purchasing power parity) or the extremely poor (those living on less than $1 dollar per day). We describe their patterns of consumption and income generation as well as their access to markets and publicly provided infrastructure. The paper concludes with a discussion of some apparent anomalous choices.

Abstract: The potential of innovative business approaches to target the poor is increasingly being recognized. This chapter outlines the evolution of thinking in the business world and explores in detail some of the relatively new business approaches that have emerged for addressing societal problems. The authors also examine whether and how these approaches can support not only those living close to the poverty line, but also help engage the marginalized at the lowest end of the income scale. While it may be unrealistic to expect businesses to be able to reach all of the extremely poor and marginalized, the authors suggest that the boundaries of innovative business operations can be pushed much further to include a far larger number of the marginalized and extremely poor.

Abstract: We studied whether relative income has an impact on subjective well-being among extremely poor people. Contrary to the findings in developed countries, where relative income has shown a significant and negative impact on subjective well-being, we cannot reject the hypothesis that relative income has no impact on subjective well-being in rural areas of northern Ethiopia.

Abstract: Objective. This study explores the wide variation in homicide rates among extremely poor neighborhoods. Methods. Using cross-sectional Census tract data for New York City (N= 2,042), the present analysis employs robust regression techniques to estimate the relationship between community resource deprivation and homicide for a subsample of 227 neighborhoods with poverty rates 40 percent and greater. Results. The main finding is that even at extreme levels of neighborhood poverty, variation in disadvantage is positively associated with variation in homicide rates. Moreover, the disadvantage-homicide relationship appears especially strong in extremely poor areas (and in predominately African-American neighborhoods). Conclusion. Consistent with W. J. Wilson's perspective on inner-city disadvantage, the results imply that reducing the concentration of poverty will reduce overall homicide rates.