The objective of this report is topresent a snapshot of the welfare landscape in Djibouti thatwill help stakeholders understand poverty’s determinants.Exploiting data from the 2017 household expenditure survey,as well as administrative and geospatial data, it provides adetailed analysis of poverty in the country, its strong linkto labor market outcomes, and the differential access toopportunities between urban and rural areas. Djibouti hasrecently experienced a period of unprecedented economicdevelopment, allowing it to grow its economy by an averageof 7 percent per year between 2013 and 2016. This reportshows that over a fifth of the Djiboutian populationcontinues to live in extreme poverty and that the countryhas high levels of inequality, ranking 71 out of 95countries with information on Gini available circa 2015. Thereport also focuses on the nexus of (monetary) poverty andthe labor market. With a dual labor market, divided betweenthe public sector and informality, a large share of thepopulation—especially those who are vulnerable—continue toface high risks, as they have neither the skills noropportunities to lift themselves out of poverty. Djiboutineeds to double its efforts in pursuing an inclusive growthstrategy. This strategy will need to be sustained by astrong labor market that allows individuals to capitalize onrecent investments in education and closes the gaps in humancapital across all groups of the population.
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