Poverty, Livelihoods and War Legacies: The Case of Post-War Rural Kosovo

MICROCON Research Working Paper No. 37

42 Pages Posted: 23 Jan 2011

See all articles by Elodie Douarin

Elodie Douarin

University of Sussex

Julie Litchfield

University of Sussex Department of Economics

Rachel Sabates-Wheeler

University of Sussex - Institute of Development Studies

Date Written: December 1, 2010

Abstract

This paper examines the effects of war on livelihood portfolios and welfare outcomes of rural households in Kosovo using the 2000 Kosovo Living Standards Measurement Survey. We question to what extent the legacy of war was experienced through selection into low return livelihood activities or through decreases in welfare generally. We first identify portfolios using a clustering algorithm which groups households pursuing similar combinations of activities. The emerging clusters are comparable to those described in more qualitative studies for Kosovo in the immediate post-conflict period. We then examine the determinants of livelihood portfolio choice and the consequences of these for welfare outcomes, controlling for war legacies and selection into specific portfolios. We find evidence of a relationship between a household’s war experience and their livelihood choices and that war exposure has different impacts on household welfare depending on the livelihood portfolio adopted. We also identify significant selection effects on welfare for three out of four of our livelihood clusters, highlighting the fact that selecting into a specific portfolio raised or lowered welfare above expected levels.

Keywords: Clusters, Kosovo, Livelihood, Post-Conflict, Selection Model, Welfare

Suggested Citation

Douarin, Elodie and Litchfield, Julie and Sabates-Wheeler, Rachel, Poverty, Livelihoods and War Legacies: The Case of Post-War Rural Kosovo (December 1, 2010). MICROCON Research Working Paper No. 37, Available at SSRN: https://ssrn.com/abstract=1744067 or http://dx.doi.org/10.2139/ssrn.1744067

Elodie Douarin (Contact Author)

University of Sussex ( email )

Sussex House
Falmer
Brighton, Sussex BNI 9RH
United Kingdom

Julie Litchfield

University of Sussex Department of Economics ( email )

School of Business, Management and Economics
Falmer, Brighton, BN1 9RF
United Kingdom

Rachel Sabates-Wheeler

University of Sussex - Institute of Development Studies ( email )

Brighton
Falmer, Brighton, East Sussex BN1 9RE
United Kingdom
+44 1273 877007 (Phone)

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