Search

This paper examines affluence and poverty interdependence across 185 countries and its evolution over 1969–2014. To estimate affluence and poverty interdependence and derive tail interdependences the tail copulae are applied to multivariate density function. The tail coefficients are estimated in the non‐parametric way as in Schmidt and Stadtmüller (2006). The estimates show, that poverty is less interdependent and continue to decrease, while affluence has asymptotically high global dependence, meaning a higher global dependence on and sensitivity to the well‐being of the affluent countries. The received results derive the pattern of the extreme interdependence and can help to identify poverty and affluence spill‐over across countries and regions and calculate the average sensitivity of a country to these phenomena on the global level and can potentially help in poverty reduction strategies within the Sustainable Development Goal by the United Nations. [ABSTRACT FROM AUTHOR]

Who benefits from economic growth? This paper analyses the distributional impact of different types of growth within a two-sector model. The paper first presents necessary and sufficient conditions for unambiguous changes in wage inequality in a dual economy, based on analysis of the entire Lorenz curve. These conditions are then applied to the Harris–Todaro model with an urban non-agricultural sector and rural agriculture. It is shown that capital accumulation or technical progress in agriculture can shift the Lorenz curve inwards and reduce wage inequality, while the effects of development in non-agriculture are typically ambiguous. [ABSTRACT FROM AUTHOR]

ABSTRACT This paper characterizes the poverty minimizing minimum wage, and shows how it varies as productivity, inequality and market competitiveness change. We show that the optimal minimum wage is equal to the competitive wage only in special cases. In general, the former is higher than the latter. Thus, poverty minimization does not coincide with employment maximization. We also show that the optimal minimum wage always rises with productivity and, under certain conditions, falls with competitiveness and inequality. Furthermore, the higher the competitiveness and inequality, the more the optimal wage rises with productivity. [ABSTRACT FROM AUTHOR]