Replication Data for Chapter 3 - Poverty and vulnerability transitions in Paraguay

Paraguay has made significant progress in poverty reduction over the past two decades, with the national poverty rate declining from 48.8% in 2004 to 24.7% in 2022. However, these achievements have been uneven, with gains concentrated before 2013, and many households remaining vulnerable to poverty due to economic and environmental shocks. This chapter examines poverty and vulnerability dynamics in Paraguay from 2004 to 2022 using synthetic panel data derived from national household surveys. The analysis reveals a significant decline in chronic poverty, particularly between 2004 and 2013, though progress has slowed in recent years. Despite overall improvements, transitory poverty and substantial downward mobility remain prevalent. Urban areas exhibit faster poverty reduction compared to rural areas, while certain subgroups, such as agricultural households and Guaraní-speaking communities experience higher risks of chronic and transient poverty. The findings underscore the dynamic nature of poverty transitions in Paraguay and highlight persistent structural inequalities. Targeted social protection policies and inclusive economic strategies are recommended to reduce poverty and vulnerability and to enhance resilience among the most at-risk populations.