Kapuscincski Development Lectures

This lecture proposes a test between the two main economic views of poverty. In the first, the poor start at a low level of human and physical capital but that does not affect the opportunities they have access to. In the second, the starting level of physical and human capital determines the opportunities individuals have access to, and so two individuals who are identical in terms of preferences and ability, but differ in terms of initial wealth will have very different opportunities. Evidence from a four years panel of over 23K poor households in rural Bangladesh provides strong support to the unequal opportunities view. The poor have access to fewer opportunities and only a sizeable investment can get them out of the poverty trap and onto the same trajectory as those starting out with more resources. The lecture will be given by Prof. Oriana Bandiera (LSE).

22 February 2018 12:00h

Facultad de Economía, Universitat de Barcelona