Exploring Changes in Poverty in Zimbabwe between 1995 and 2001 using Parametric and Nonparametric Quantile Regression Decomposition Techniques
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This paper applies and extends Machado and Mata's parametric quantile decomposition method and a similar nonparametric technique to explore changes in welfare in Zimbabwe between 1995 and 2001. These methods allow us to construct a counterfactual distribution in order to decompose the shift into the part due to changes in endowments and that due to changes in returns. We examine two subsets of a nationally representative dataset and find that endowments had a positive effect but that returns account for more of the difference. In communal farming areas, the effect of returns was positive while, in urban Harare, it was negative.
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