Giles, JohnMurtazashvili, Irina2012-03-192012-03-192010-08-01https://hdl.handle.net/10986/3884This paper proposes a parametric approach to estimating a dynamic binary response panel data model that allows for endogenous contemporaneous regressors. This approach is of particular value for settings in which one wants to estimate the effects of an endogenous treatment on a binary outcome. The model is next used to examine the impact of rural-urban migration on the likelihood that households in rural China fall below the poverty line. In this application, it is shown that migration is important for reducing the likelihood that poor households remain in poverty and that non-poor households fall into poverty. Furthermore, it is demonstrated that failure to control for unobserved heterogeneity would lead the researcher to underestimate the impact of migrant labor markets on reducing the probability of falling into poverty.CC BY 3.0 IGOABSOLUTE VALUEAGRICULTURAL POLICYASYMMETRIC INFORMATIONCONSUMER PRICE INDEXCONSUMPTION GROWTHCOVARIANCE MATRIXCULTURAL CHANGECURRENT POVERTYDEPENDENT VARIABLEDERIVATIVESDETERMINANTS OF POVERTYDEVELOPED WORLDDEVELOPING COUNTRIESDEVELOPING WORLDDEVELOPMENT ECONOMICSDEVELOPMENT RESEARCHDUMMY VARIABLEDUMMY VARIABLESDURABLEDURABLE GOODSDURABLESDYNAMIC PANELECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC POLICYECONOMIC STUDIESECONOMIC TRANSITIONECONOMICSECONOMICS LETTERSEDUCATIONAL ATTAINMENTEMPIRICAL APPLICATIONEMPIRICAL EVIDENCEEMPIRICAL STUDIESEMPLOYMENT OPPORTUNITIESERROR TERMESTIMATES OF POVERTYESTIMATION RESULTSEXPENDITUREEXPENDITURESEXPLANATORY VARIABLESFARM EMPLOYMENTFARMERSFINANCIAL SUPPORTGEOGRAPHIC POVERTY TRAPSGROWTH RATEHOUSEHOLD COMPOSITIONHOUSEHOLD CONSUMPTIONHOUSEHOLD CONSUMPTION PER CAPITAHOUSEHOLD INCOMEHOUSEHOLD POVERTYHOUSEHOLD SIZEHOUSEHOLD SURVEYHOUSEHOLD SURVEYSHOUSINGHUMAN CAPITALHUMAN DEVELOPMENTHUMAN RESOURCESIMPACT OF MIGRATIONIMPACT ON POVERTYIMPACT ON POVERTY REDUCTIONINCOMEINCOME INEQUALITYINDICATORS OF POVERTYINEQUALITYINSTRUMENTINSURANCEINSURANCE MARKETSINTERNATIONAL BANKINVESTMENT DECISIONSLABOR FORCELABOR MARKETLABOR MARKETSLABOR SUPPLYLAGGED DEPENDENTLAND HOLDINGSLOCAL ECONOMYMACROECONOMIC SHOCKSMARRIED WOMENMEAN VALUEMICRO MODELMIGRANTMIGRANT LABORNEGATIVE SHOCKSNON-POOR HOUSEHOLDSNORMAL DISTRIBUTION0 HYPOTHESISNUMBER OF HOUSEHOLDSNUMBER OF MIGRANTSNUTRITIONPERSISTENT POVERTYPOLICY CHANGESPOLICY DECISIONSPOLICY RESEARCHPOLICY RESEARCH WORKING PAPERPOLITICAL ECONOMYPOORPOOR HOUSEHOLDSPOPULATION AND DEVELOPMENTPOPULATION CENSUSPOST-REFORMPOVERTY ALLEVIATIONPOVERTY LINEPOVERTY PERSISTENCEPOVERTY REDUCTIONPOVERTY STATUSPROGRESSPROPERTY RIGHTSPUBLIC SERVICESQUALITATIVE DATARAPID GROWTHREDUCED FORM EQUATIONREGISTRATION SYSTEMREMITTANCESREMOTE REGIONSRESIDENCE STATUSRESPECTRETURNRETURNSRURALRURAL COMMUNITIESRURAL CONSUMERRURAL COUNTIESRURAL ECONOMYRURAL HOUSEHOLDRURAL HOUSEHOLDSRURAL LABORRURAL LIVING STANDARDSRURAL MIGRANTSRURAL MIGRATIONRURAL RESIDENTSRURAL VILLAGESSAVINGSSERIAL CORRELATIONSOCIAL NETWORKSSTATE UNIVERSITYUNEMPLOYMENTURBAN AREASURBAN MIGRATIONVALUATIONVILLAGE LEADERSVILLAGE LEVELWORKFORCEWorld Bank10.1596/1813-9450-5400