Agrarian poverty and income shock in Puno: an analysis based on ENAHO

Abstract

In this article we analyze the evolution of monetary poverty in small-farm agriculture in Puno for 2007 to 2015 period using ENAHO data.  The outstanding reduction in poverty rates in the region between 2007 and 2012 has come to a stop in 2013, and between 2014 and 2015 it has increased for the first time in the period, both for all and for agricultural households.  Given the shape this poverty evolution has taken, it is proposed that its main origin is a negative income shock in urban areas affected by an economy-wide lower growth, which has negatively impacted agricultural incomes, especially those more linked to markets.  In addition, we estimate a Probit model for assessing the poverty profile of agricultural households based on characteristics like age, farm size, maternal tongue, genre and education of farmers.  The analysis suggests a more effective and sustainable ways to reduce poverty in agricultural areas of Puno in the years to come.