Print version ISSN 0120-6346
PRIETO BUSTOS, William Orlando. Poverty determinants in Isla Grande. Semest. Econ. [online]. 2011, vol.14, n.28, pp. 35-47. ISSN 0120-6346.
This document contrasts the estimations of a nonlinear fixed effects model for determining poverty with a linear fixed event model for income generation for a sample of 136 persons using data panels for 2007 and 2009. The results for the estimation suggest the existence of a poverty trap. The education level, the subsidized health system, self-employment and informal contracts result significant in the explanation of variations in the income per capita. Likewise the working experience, the education level, the informal contracts and the increase in economic activities result significant in the poverty explanation. Especially, the impacts in variables of poverty education and income generation are limited to the short labor demand and the small relative importance to human capital and working experience in the determination for better wages.
Keywords : Regional Economy; Local Development; Probability Econometric Models; Poverty.