Global Poverty Research Group

Policies towards poverty in Ethiopia


A country in which detailed panel data have been collected by GPRG researchers is Ethiopia. What does the evidence for rural Ethiopia show? Pramila Krishnan and Stefan Dercon have addressed this question. The availability of panel data means that it is possible to investigate if the households in the panel have seen rises in income. It is argued that the main factors driving income changes are relative price changes resulting in changes in the returns to land, labour, human capital and location. The experience of the poor is mixed. For some of the poor their poverty was persistent. These findings are particularly important as the poor in Ethiopia are amongst the poorest people in the continent. 

Recent publications 

Dercon, S.,The impact of economic reform on rural households in Ethiopia’, Poverty Dynamics in Africa Series, Washington D.C.: The World Bank, 2002.

Dercon, S., and P. Krishnan, ‘Changes in poverty in villages in rural Ethiopia: 1989-95’, in A. Booth and P. Mosley (eds.), The New Poverty Strategies, Palgrave MacMillan, London, 2003. 

Reseachers to contact for this project

Stefan Dercon