Search

The EU-wide survey ' Statistics on Income and Living Conditions' ( EU- SILC) is extremely important for international social science research and policy advice. It is therefore crucial to ensure that the data are of the highest quality and international comparability. This paper is aimed at identifying unexpected developments in income levels, income mobility, and inequality in the EU- SILC data between 2005 and 2009. We examine the consistency of EU- SILC by comparing cross-sectional results with findings based on two-year longitudinal samples. Although the data represent similar populations, for several countries the results of this comparison differ widely. One important outcome is the high degree of variability over time in countries that obtain their income information from register data. This suggests methodological challenges in the clear designation of new subsample members, in the reweighting of the data, in imputation of missing values, and in other areas. [ABSTRACT FROM AUTHOR]

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper proposes a new type of growth rate, called the “poverty equivalent growth rate” (PEGR), which takes into account both the growth rate in mean income and how the benefits of growth are distributed between the poor and the non-poor. The proposed measure satisfies a basic requirement that the proportional reduction in poverty is a monotonically increasing function of the PEGR. Thus, maximizing the PEGR implies a maximum reduction in poverty. The paper demonstrates that the magnitude of PEGR determines the pattern of growth: whether growth is pro-poor in relative or absolute sense or is “poverty reducing” pro-poor. The pattern of growth has been analyzed for Brazil using the National Household Survey (PNAD) covering the period 1995–2005. [ABSTRACT FROM AUTHOR]

The paper examines the pattern of poverty, growth and inequality in Ethiopia in the recent decade. The result shows that growth, to a large extent depends on structural factors such as initial conditions, vagaries of nature, external shocks and peace and stability both in Ethiopia and in the region. Using a rich household panel data, the paper also shows that there is a strong correlation between growth and inequality. In such set up, the effect of implementing a pro-poor growth strategy, compared to allowing the status quo to prevail, can be quite dramatic. On the basis of realistic assumptions, the paper shows that from a baseline in 2000 of a 30 per cent poverty share, over 10 years at growth of 4 per cent per capita, poverty would decline from 44 to 26 per cent for distribution neutral growth (DNG) (i.e. no change in the aggregate income distribution). In contrast, were the growth increment distributed equally across percentiles (equally distributed gains of growth, EDG), the poverty would decline by over half, to 15 per cent, a difference of almost eleven percentage points. Thus, ‘distribution matters’, even, or especially in a poor country like Ethiopia. On the basis of these results the paper outlines policies that could help to design a sustainable pro-poor growth strategy. Copyright © 2008 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

In this paper, we have presented the patterns of inequality, growth and income inequality in the MENA region. Using a cross-sectional time series data of MENA countries for the period 1985-2009, we have also investigated the effect of income inequality on key societal development, namely economic growth and poverty, in the region. Our empirical results show that income inequality reduces economic growth and increases poverty in the region. Other factors having significant negative effect on economic growth in the MENA region include previous growth rate, exchange rate, government consumption expenditure or government burden, initial per capita GDP, inflation and primary education. On the other hand, variables positively and significantly associated with MENA's economic growth are domestic investment rate, urbanization, infrastructure development, and mineral rent as a percentage of GDP. In addition, apart from income inequality, other factors increasing poverty in the region are foreign direct investment, population growth, inflation rate, and the attainment of only primary education. Poverty-reducing variables in the region include domestic investment, trade openness, exchange rate, income per capita, and oil rents as a percentage of GDP. [ABSTRACT FROM AUTHOR]

This paper discusses the impact off fifteen years of economic and social change on income inequality and poverty in New Zealand. The paper considers how a consensual poverty line was established through the use of a series of focus groups. This leads into a discussion on who was poor in 1998. Problems in measuring trends in the incidence and severity of poverty during a period when economic growth is absent and the income distribution is widening are then analysed. The discussion briefly incorporates current New Zealand debates on benefit dependency, intergenerational transmission of poverty and social exclusion. [ABSTRACT FROM AUTHOR]

Using panel data for provinces compiled from household expenditure microdata, the present paper empirically investigates the relationships among growth, poverty and inequality in Thailand and the Philippines. The empirical model avoids the potential bias due to the fact that the entire distribution of individual-level consumption changes over time and empirical variables for growth, poverty and inequality are often compiled from the consumption distribution. The system generalized method of moments estimation results strongly suggest that inequality reduced the growth rate of per-capita consumption, and that differences in inequality explain a substantial portion of the Philippine-Thai difference in growth and poverty reduction since the late 1980s. [ABSTRACT FROM AUTHOR]

This paper presents a brief account of welfare changes in Zimbabwe along the income and education dimensions between 1995 and 2003. Using sequential dominance procedures, we find that education attainment substantially improved over time. However, these gains did not necessarily translate into poverty reduction, rather welfare over the joint distribution of income and education dramatically deteriorated. These results are robust for all education partitions, income thresholds and a broad class of welfare indices. A further inquiry into the factors underlying this apparent disconnection between education and income using decomposition techniques reveals that the increase in poverty incidence cannot be attributed to household characteristics but is reflective of the broader socio-economic trends prevailing at the time. The decline in economic growth contributed tremendously to the decline in welfare while inequality changes account for a small proportion. [ABSTRACT FROM AUTHOR]

This paper provides a survey of the literature on inequality in China – level, change, causes, and consequences. It attempts to answer six main questions. How much has inequality risen? What is its relation to poverty alleviation? What has happened to wealth inequality? What are the main dimensions of rising income inequality? The dimensions examined are: the rural–urban divide; urban labor market reform; regional divergence; rural–urban migration; and entrepreneurship, rent-seeking, and corruption. Was it inevitable that inequality should rise so much? Does it matter that inequality has risen? Income distribution in China is bound up with both economic reform and economic growth. This paper concludes by considering the countervailing forces that will determine the path of inequality in future years. [ABSTRACT FROM AUTHOR]

Copyright of International Social Security Review is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article challenges Horner and Hulme's call to move from 'international development' to 'global development' with a reaffirmation of the classical traditions of development studies. With some adaptation to fit the changing contemporary context, these traditions not only remain relevant but also recover vital insights that have been obscured in the various fashionable re‐imaginings of development. In particular, development thinking and agendas in the past were much more radical and ambitious in addressing the imperatives of redistribution and progressive forms of transformation in the context of stark asymmetries of wealth and power. Such ambition is still needed to address the nature and scale of challenges that continue to face the bulk of countries in the world, particularly given the persistence if not deepening of asymmetries. This reaffirmation is elaborated by addressing three major weaknesses in Horner and Hulme's arguments. First, they do not actually define development, but instead treat it as simply poverty and inequality dynamics, which are better understood as outcomes rather than causes. Second, despite their assertion that the study of (international) development was primarily concerned with between‐country inequalities, this is not true. Domestic inequality was in fact central to both development theory and policy since the origins of the field. Third, the authors ignore the rise of neoliberalism from the late 1970s onwards and the profound crisis that this caused to development outside of East Asia and perhaps India, which the jargon of 'global' implicitly obfuscates and even condones. Rather, the experiences of East Asia and in particular China arguably vindicate classical approaches in development studies. [ABSTRACT FROM AUTHOR]

This paper represents a first attempt to bring together the issues of multidimensional poverty and growth 'pro-poorness' assessments. More specifically, we suggest the use of sequential dominance procedures to test the 'pro-poorness' of observed growth spells when poverty is measured on the basis of income and another discrete well-being attribute. Sequential procedures are also used to obtain graphical tools that are consistent with the spirit of Ravallion and Chen's growth incidence curve and Son's poverty growth curve. Contrary to traditional unidimensional tests, our method makes it possible to take into account the importance of deprivation correlations at the individual level and thus may reverse results observed with the traditional tools used to check the 'pro-poorness' of growth. An illustration of our approach is given using Turkish data for the period 2003-05. [ABSTRACT FROM AUTHOR]

Current growth literature does not explain the inability of poor countries to utilize existing knowledge. This study presents a stylized development model based on firms' expansion through on-the-job training. Since trained workers can supervise and train more workers, a development process in which output and productivity increase up to a full utilization of existing technology is generated. Unlike schooling-based models, which require an assumption regarding a smaller local stock of knowledge, this study relies on the size of the industrial sector and the limited supply of training opportunities, therefore highlights barriers to development, even when technology and capital are available. ( JEL O1, O4, J2) [ABSTRACT FROM AUTHOR]

In academic economics, inequality has received little attention in recent decades, although popular concerns about the super-rich have grown. The World Top Incomes Database provides evidence of the rise of the super-rich in many countries since 1980. Thomas Piketty has publicised the new data, predicting increases in inequality due to the return to capital exceeding the rate of economic growth and advocating policies to counter such increases by high taxes on the income and wealth of the super-rich. This article asks why inequality has been a neglected topic, assesses empirical contributions and Piketty' s model and discusses implications for evidence-based policies. [ABSTRACT FROM AUTHOR]

The aim of this article is to analyse in depth the interactions of growth and poverty in Syria, which undertook reforms to reduce the government's involvement in the economy. During the 1996-2004 period, growth was pro-poor in 'weak absolute' terms but not in either relative or 'strong absolute' terms, owing to the increase in inequality. This can be explained partly by tax policies, but also by an unequal distribution of investment at the regional level. There was also a widening of the gap between urban and rural areas, mainly owing to a pattern of growth in which oil played an increasing role and agriculture a decreasing one. Agricultural and land-policy reforms could have had a negative impact on poverty, despite their positive effect on productivity. [ABSTRACT FROM AUTHOR]

Despite its rapid economic growth, China remains a developing country facing serious challenges of poverty and inequality. This article examines the development and effectiveness of China's primary anti-poverty family policy, the Minimum Living Standard Assurance ( MLSA, or Dibao). Using rich administrative data and building on the existing literature, this article provides a critical evaluation of MLSA's benefit generosity, coverage, targeting, and anti-poverty effectiveness. To help reinforce MLSA's anti-poverty impacts, local governments in recent years have implemented a series of supplementary policies and programs, including health, education, housing, and work support programs. This article also provides an assessment of these supplementary policies and programs and draws policy implications for the ongoing expansion of the Chinese government's anti-poverty efforts. [ABSTRACT FROM AUTHOR]

The accountability movement in public policy hails a new programme for US foreign assistance - the Millennium Challenge Account established in 2004 with the aim of 'picking winners' for grants among developing countries based on their demonstrated quality of governance. This article uses the MCA's own rating system to dispute its claim to know in advance which countries are best positioned to meet major development goals. High governance scores alone bear little or no relationship to growth in national income or decline in poverty. Attempting to measure public-policy performance limits the range of choice available to policy-makers, and may inadvertently limit true performance. [ABSTRACT FROM AUTHOR]

The present study examines the extent to which income distribution affects the ability of economic growth to reduce poverty, based on 1990s data for a sample of rural and urban sectors of African economies. Using the basic-needs approach, an analysis-of-covariance model is derived and estimated, with the headcount, gap, and squared gap poverty ratios serving as the respective dependent variables, and the Gini coefficient and PPP-adjusted incomes as explanatory variables. The study finds that the responsiveness of poverty to income growth is a decreasing function of inequality, albeit at varying rates for the three poverty measures: lowest for the headcount, followed by the gap and fastest for the squared gap. The ranges for the income elasticity in the sample are estimated at: 0.02–0.68, 0.11–1.05, and 0.10–1.35, respectively, for these poverty measures. Furthermore while, on average, the responsiveness of poverty to income growth appears to be the same between the rural and urban sectors, there are substantial sectoral differences across countries. The results suggest the need for country-specific emphases on growth relative to inequality. [ABSTRACT FROM AUTHOR]

The development economist Dani Rodrik recently declared that “the globalization consensus is dead”. The claim has momentus implications, because this consensus has steered economic policy around the world for the past quarter century. It emanates from the heartland of neoclassical economics, and defines the central tasks of the Washington-based organizations which claim to speak for the world. This essay answers two main questions. First, is Rodrik's claim true, and by what measures of “consensus”? Second, to the extent that the consensus has substantially weakened, is the state returning to the heart of economic life, as Karl Polanyi might have predicted? The answers? First, the globalization consensus about desirable economic policy has weakened, though it is far from “dead”. Second, the western state is returning to the heart of economic life in response to the current global economic crisis, but will retreat soon after national economies recover—because unless the crisis becomes a second Great Depression, the norms of more free markets and more global economic integration will be politically challenged only at the margins. New rules of finance may be introduced, but with enough loopholes that by 2015 Wall Street and the City will operate in much the same way as in the recent pre-crisis past. [ABSTRACT FROM AUTHOR]

This article has two goals: (i) to reduce the 7-fold productivity differential required to explain the observed 33-fold income difference between the richest and poorest countries of the world; and (ii) to explain cross-country differences in the capital-output ratio. To achieve the first goal we modify the production function of the standard neoclassical growth model to include public capital whose provision is subject to intermediation costs. For the second goal we distort private investment by introducing credit frictions. The model, quantified using cross-country data, generates an income gap of 33 with productivity differences of only 3 under the measured variations in public and private capital. The required productivity gap declines even further, to 2.1, when we introduce a home-production sector. On the second goal, however, credit frictions do a poor job of explaining cross-country variations in the capital-output ratio. [ABSTRACT FROM AUTHOR]

The article focuses on the implications of globalization for income inequality. Income inequality refers to the degree of dissimilarity of the incomes within a certain chosen unit, such as region, country or the globe. It describes how highly households' or groups' incomes deviate from average income in an income distribution. Most economists see economic growth as a prime move in decreasing poverty and equally distributing the benefits from growth as the cure for inequality. If countries are taken as the unit of analysis, the inequality literature can be split into within-country inequality, between-country equality and global inequality. Motivated by the Solow-Swan growth model and its implications for absolute convergence, researchers, for some time, looked at per capita income differences between countries to approximate world inequality. There are two methodological approaches to measuring global inequality. In the first approach, the whole world is considered like a country and income of each household is counted towards measuring world inequality. The second approach approximates world inequality by taking into account per capita gross domestic products of the countries, between-country income distributions, countries' populations and their within-country income distributions.

The article focuses on the effects of economic growth on the distribution of income. Henry George and Alfred Marshall were among the most influential authors of the late 19th century. George's best-selling "Progress and Poverty" fueled many policy debates of the time; and Marshall's "Principles of Economics," the standard textbook for decades, laid the foundation for modern economics. Each recognized the other's influence. Not only were George and Marshall important figures in intellectual his tow, but they had an important common ground in their deep concern with poverty. Both considered poverty mentally and morally debasing in large part because of its general association with relentlessly hard manual labor. George and Marshall both believe that aided by a proper set of policies, progress can eliminate poverty. With a tax that appropriates rent from the unimproved value of land, George sweeps away all other taxes, all unearned and undeserved private income, poverty, greed, and only one aspect of private land ownership-its entitlement to residual income. With more public education and a higher sense of duty, Marshall's tamed competition gradually eliminates poverty and its attendant evils.

The World Development Report 2000/01 builds a complex picture of poverty, and a comprehensive approach to its reduction, which challenges the still dominant neo-liberal paradigm. The significance of inequality in determining the outcomes of economic growth, of vulnerability and the need for an agenda of social security or social protection represent advances in the discourse of international agencies. The uniform and simplistic solutions of the past are dismissed with recognition of the fragility of markets and the problems of privatization. The diversity of poverty is met by emphasis on country strategies, which need to address the issues faced by the losers from the process of economic growth. Diversity has been identified — it now needs analysis. The comprehensive approach advocated should help to stabilize development thinking, to move away from the pendulum swings of policy fashion. The constraints to poverty reduction are under-emphasised — resources to provide safety nets; the problems of preventing or resolving conflict, and the potential political resistance from elites unconvinced that poverty is their problem. Nevertheless, the report provides a basis for building a new international coalition against poverty, with the Bank as one among several agencies, a situation in which it will need to clarify its role. Copyright © 2001 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This article compares income distribution and economic progress to neo-classical and neo-Keynesian schools. It aims to determine empirically whether there is a strong relationship between income distribution and economic progress. Its first section briefly examines the economic theories on the relationship between income inequality and economic progress within the framework of institutional economics. The second section contains the empirical analysis of the hypothesized relationship which involves construction of a model, description of the variables and data, and interpretation of the estimated results. A cross- national study with a sample of 65 countries is carried out. In the final section, conclusions and suggestions for further study are made. The analysis of income distribution and economic progress (or growth) in the past was largely dominated by the conventional approaches such as neo-classical and neo-Keynesian schools. However, institutionalism offers an alternative explanation, particularly on the relationship between income distribution and economic growth.

Economic growth had less impact on poverty rates in the 1980s than in the 1960s. Could this explained by Lake Anderson's observation that the higher median income, the greater the amount of growth need to achieve a percentage point fall in the poverty rate? No, higher poverty rates are due instead to the rise in income inequality. With higher inequality, however, trickle down could be as effective in the 1990s as it was in the late 1960s. More generally, assessments of anti-poverty policy must recognize that inequality is as vital to chants in the poverty rate as growth in mean income. [ABSTRACT FROM AUTHOR]

Although they are leading institutions in the world of modern development finance, the multilateral development banks have not been very explicit in outlining the development theories upon which they base their loan operations. This paper assesses the utility of the three prime theories employed by these institutions: the project approach, the macroeconomic (gap theory) approach, and the social welfare (or income distribution) approach. It indicates the questions to which each approach addresses itself, and it indicates weaknesses and theoretical inadequacies of each as a primary or sole development tool. Only a balanced and careful use of all these sometimes contradictory approaches will permit the multilateral lending institutions to fulfill their multifaceted obligations. [ABSTRACT FROM AUTHOR]

The article presents the author's opinion on child poverty in several economically developed countries. He says that poverty is being given lot of public attention but the causes of it is not cared for. The author says that living standard and prosperity are relative terms that varies from country to country. He believes that the indicators of poverty and the poverty line should change with time in a given territory and the poverty indices should reflect the attitude about poverty change.