Poverty dynamics in Palestine using repeated cross-sectional data analysis

Abstract

Dynamic relations and transitions over time are important aspects in different fields. Dynamic models require panel data for at least two periods. However, panel data collection requires high costs. So, in many countries there is a lack of panel data. When only cross-sectional data are available, we will not be able to analyze dynamic relations which will lead to lack of knowledge and capability of prediction of important indicators for the development of people's life. In this thesis, we will apply Dang and Lanjouw (2013), in addition to other traditional approaches, to estimate the transition probabilities of getting into and out of poverty. This thesis can initiate this kind of analysis by highlighting methods of repeated cross-sectional data analysis, which is widely available in different Palestinian surveys. The results show that the rate of mobility of refugees in the poverty is greater than that of the non-refugees, but there is no evidence that there is a difference between refugees and non-refugees to get out of poverty. Thus, the migration caused by the Israeli occupation affected the refugees by increase the probability of entering the trap of poverty.