Transitioning Out of Poverty

28 Pages Posted: 22 Dec 2009

See all articles by David M. Brasington

David M. Brasington

University of Cincinnati - Department of Economics

Mika Kato

Howard University

Willi Semmler

The New School - Department of Economics; Universitaet Bielefeld; IIASA


We analyze the role of social environment and human capital formation in persistence of poverty and inequality. We present a Romer type variety model where the presence of economies of agglomeration in social environment may cause two basins of attraction; whereby we may interpret the lower basin as a poverty trap and the upper basin as a take-off region. We then consider the size of income transfer to regions and its effect on inequality and welfare. We provide supporting evidence of existing inequality and poverty trap using educational attainment data for the USA.

Suggested Citation

Brasington, David M. and Kato, Mika and Semmler, Willi, Transitioning Out of Poverty. Metroeconomica, Vol. 61, No. 1, pp. 68-95, February 2010. Available at SSRN: or

David M. Brasington (Contact Author)

University of Cincinnati - Department of Economics ( email )

Carl H. Lindner Hall 2925 Campus Green Drive
PO Box 0371
Cincinnati, OH 45221-0211
United States

Mika Kato

Howard University ( email )

2400 Sixth Street, NW
Washington, DC 20059
United States

Willi Semmler

The New School - Department of Economics ( email )

65 Fifth Avenue
New York, NY 10003
United States


Universitaet Bielefeld ( email )

Universitätsstraße 25
Bielefeld, NRW

IIASA ( email )

Schlossplatz 1
Laxenburg/Austria, A-2361

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