A SHAPLEY DECOMPOSITION OF MULTIDIMENSIONAL CHRONIC POVERTY IN ARGENTINA
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© 2016 Board of Trustees of the Bulletin of Economic Research and John Wiley & Sons LtdThis paper proposes a Shapley decomposition to analyse the evolution of chronic poverty in a multivariate setting using a chronic poverty measure proposed by Alkire and colleagues. The decomposition makes possible to assess a vast array of information to find the drivers of change in chronic poverty, and could be a valuable tool in the way public policy programmes focus resources. We present an empirical application of the changes in chronic poverty in Argentina during the period 2004¿12 using the Permanent Household Survey. We found that households with older adults show great persistence of multidimensional chronic poverty in time while the employment indicators is found to be an important driver of the intensity of chronic poverty.