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Purpose: This paper aims to analytically show that in an over-lapping-generation (OLG) model, low earning cohorts bear unwanted risk and absorb higher economic cost than high earning cohorts do. Design/methodology/approach: This paper aims to consider the individual's risk appetite, using a simple utility function, based on consumptions and discount rates in each period. This paper calibrates the model according to teh Israeli pension system as a representative of a small open developed organization for economic cooperation and development country. Israel is considered as unique case study in the pension landscape, as it implements almost pure defined contribution pension scheme with continuous trend of pension market capitalization (Giorno and Jacques, 2016). Hence, this study finds Israel suitable for examining the theoretical mix of pension scheme. That model enables exploring combined solutions for adequate old age benefits, involving the first and the second pension pillars, under fiscal constraints. Findings: It comes out that for risk-averse individuals, the optimal degree of funding is negatively correlated to asset returns' volatility and positively correlated to earning decile level. The neglect of risk and individual's current earning level will thus overstate the contribution level and funded percentage from total contributions. Moreover, even in an economy with minimum government intervention, and highly developed private pension fund with high average of rate of return, the authors find it is optimal that the pension system contains a sizeable unfunded pillar. This paper innovates by revealing a socio-economic anomaly in design of mix pension systems in favor of high earning cohorts on the expense of economic loss of low earning cohorts. Practical implications: The model presented in this paper could be implemented in countries with mix pension systems, as an alternative to public social transfers or means tested, alleviating poverty and inequality in old age. Additionally, this model could raise the public awareness of the financial sustainability of the unfunded pay-as-you-go pillar to diversify financial risk in pension systems, especially for low earning cohort in society. Social implications: One area of research that is particularly relevant in this context concerns the issue of alleviating poverty and income inequality. It is often stressed that the prevention of old age poverty is among the central targets of well-designed pension system (Holzmann and Hinz, 2005). The conceptualization of minimum pension guarantee used in this composition allows to clearly capturing the notion of such a poverty and social targets as an integral part of the pension system rolls. Originality/value: This paper innovates by revealing a socio-economic anomaly in design of mix pension systems in favor of high earning cohorts on the expense of economic loss of low earning cohorts. That comes to realize through the level of total contribution rates and funded share that are generally optimal for high earning cohorts but not for low earning cohorts. This paper identifies that the effect of anomaly is most significant in a market characterized with high income-inequality level. This paper finds that imposing intra-generational risk sharing instrument in the form of minimum pension guarantee can re-balance pension design among different earning cohorts. This solution demonstrates balancing effect on the entire economy. [ABSTRACT FROM AUTHOR]

The increasing wave of protectionism in various corners of the world with the use of seemingly attractive but economically misleading slogans (shortening supply chains, onshoring, reshoring, nearshoring, friend-shoring, reindustrialization, and ending/correcting 'hyperglobalization', etc.) creates a serious challenge to the global trading system and global economic development. Trade and financial transactions have also become victims of the increasing number of geopolitical conflicts and tensions, both 'hot' and 'cold'. Before it becomes too late, i.e., before the current trade tensions go too far and create the hardly reversible spiral of trade and financial wars, retaliations, etc., it is desirable to reflect on what can be lost due to protectionism. This essay analyzes four areas that have benefited from global economic integration since the 1980s (economic growth, poverty eradication, reduction in global economic inequalities, and disinflation) and may suffer from its reversal. It also discusses potential remedies that may help stop a protectionist drift. [ABSTRACT FROM AUTHOR]

Policymakers, scholars and development practitioners agree that economic growth is necessary but insufficient to achieve inclusive growth. Zambia witnessed improved GDP growth in recent decades. However, the country ranks among the poorest and wealth unequal in the world. This paper investigates the long run and short run determinants of inclusive growth in Zambia using the auto-regressive distributed lag (ARDL) and error correction model (ECM) from 1980 to 2022. The findings show that initial income, inflation, foreign direct investment and trade openness improve inclusive growth in the long run. On the contrary, gross fixed capital formation and general government education expenditure have long run negative impact on inclusive growth. However, in the short run gross fixed capital formation and government education expenditure increase inclusive growth while inflation, foreign direct investment and trade openness dampens inclusive growth in the short run. From the findings, the study recommends that policymakers promote the inflow of foreign direct investment through a conducive economic environment, stable inflation rate, and complete openness of the economy to international trade while improving the levels of gross fixed capital formation and education expenditure to achieve higher inclusive growth in the long run. [ABSTRACT FROM AUTHOR]

The objective of the study was to investigate whether Tanzania's economic growth is pro-poor or not. The information for the study was obtained from secondary data. The study analyzed two periods: 1991/92 - 2007 and 2007 - 2011/12. The study found that for the 1991/91 - 2007 period, while economic growth made a notable positive change, reduction in poverty and inequality has not been significant. This was because the growth of the economy was driven by capital intensive sectors which were unable to absorb a good number of job seekers nor did they provide markets for the agriculture produce. In contrast, for the 2007 - 2011/12 period, poverty and inequality declined though disproportionately as economic growth expanded. The reduction in poverty and inequality was attributed to increased education levels, ownership of land and other assets, and access to employment opportunities and basic services and the returns from those endowments. The disproportionate benefits were related to rural status, family size, education level, wage employment and non-farm businesses, access to public infrastracture and internal migration. This paper suggests that efforts should be made to ensure that the emerged signs of pro-poor growth are spread to the majority poor. The paper, therefore, recommends policies such as land reforms and strategies to improve land productivity for the poor, improve provision and access by the poor to social and economic services, promote off-farm activities, government redistributive measures, adoption of labour intensive techniques particularly for the activities undertaken by the poor and in areas where the majority of poor live, and the introduction of safety net programmes. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to investigate the link between tourism, economic growth, inequality, and poverty reduction in the five countries of Central America (Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua). Design/methodology/approach – The study represents the first application of panel data modeling of poverty, economic growth and inequality as related to Central America. Unbalanced panel data are employed for the five Central America countries for the period 1980-2012. Findings – The findings reveal three results: the relationship between poverty, inequality and economic growth varies relatively very little for different measures of economic growth; the null hypothesis that economic growth and inequality does not matter is rejected at the 1 percent level, and the coefficients are highly significant and with the expected signs; tourism matters for poverty reduction in Central America. Originality/value – The paper represents the first application of panel data modeling poverty, economic growth, inequality, and tourism development in the context of Central America. Additionally, the study puts together the largest number of comparable observations on poverty, income, and income distribution for Central America during the period 1980-2012. [ABSTRACT FROM AUTHOR]

This paper examines the impact of financial development, economic growth and income inequality on poverty in India from 1970 to 2015 by employing the autoregressive distributed lag (ARDL) bounds testing procedure. The findings reveal a robust long-run relationship between financial development, economic growth, inequality and poverty. Results show that financial development and economic growth help in poverty reduction in India, whereas income inequality and inflation aggravate poverty. Empirical evidence of the Granger-causality test supports the presence of unidirectional causality from financial development and economic growth to poverty. Moreover, bidirectional causality exists between inequality and poverty. The present study provides evidence on which the policymakers may proceed with detailed investigation of how specific financial sector policies and interventions can be deployed as effective instruments for achieving favorable economic growth and income distribution. The study recommends that policies geared toward increasing financial development and economic growth should be adopted to reduce the high level of poverty and inequality currently prevailing in India. [ABSTRACT FROM AUTHOR]

The paper reviews the history of the concepts used to depict poverty in Africa. "Pauperism" is a legal concept, deriving from early modern law in Britain, which frames individual situations, places the paupers under specific rights and duties, and was applied in early colonial situations. Percentile is a economic-demographic concept, implying class difference, indexed to measurable or imputed monetary income, which became an instrument of government in the colonial world mainly after 1945, moving into the international comparative world after the era of independence. In the neoliberal era after 1989, the concept of precarity, and a focus on realizable assets rather than income, has taken higher profile than an emergent replacement for the comparative-percentile approach, sometimes now depicted as "living on $2 a day". The paper indicates the conceptual and political implications and challenges of each of these depictions. [ABSTRACT FROM AUTHOR]

This paper considers the implications for poverty measurement of the observed fact that any individual's level of deprivation is a function not only of his own income, but of the general level of prosperity of the group to which he is affiliated. Individual deprivation functions are specialized to a form that reflects this 'group-affiliation' externality, and the resulting poverty measure is studied with respect to its properties, and its implications for poverty rankings. Mainstream approaches to measuring deprivation tend to neglect group-related externalities in favour of a certain thorough-going 'individualism'. This paper is a preliminary attempt at filling this gap. [ABSTRACT FROM AUTHOR]

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]

This paper analyzes several modifications to improve a simple measure of vulnerability as expected poverty. Firstly, in order to model income, we apply distributional regression relating potentially each parameter of the conditional income distribution to the covariates. Secondly, we determine the vulnerability cutoff endogenously instead of defining a household as vulnerable if its probability of being poor in the next period is larger than 0.5. For this purpose, we employ the receiver operating characteristic curve that is able to consider prerequisites according to a particular targeting mechanism. Using long-term panel data from Germany, we build both mean and distributional regression models with the established 0.5 probability cutoff and our vulnerability cutoff. We find that our new cutoff considerably increases predictive performance. Placing the income regression model into the distributional regression framework does not improve predictions further but has the advantage of a coherent model where parameters are estimated simultaneously replacing the original three step estimation approach. [ABSTRACT FROM AUTHOR]

The study examines how the recent economic crisis and the related unfavourable economic features affect poverty. As economic crisis is usually associated with many economic and social problems, it tries to determine to what extent it influences poverty. The paper attempts to prove that economic recession contributes not only to the impoverishment of a significant section of society, but also increases the depth of poverty significantly. If the research supports this hypothesis, it is worth examining to what extent one percent economic growth or economic decline can decrease or increase the rate of the poor and the depth of poverty. Besides the effect of economic growth on the given area, the paper also analyses the effect of the economic growth of the neighbouring areas. The initial hypothesis states that the economic growth of the neighbouring regions can also alleviate poverty. As for spatial effects, spatial autocorrelation is examined in the average income level to reveal how the economic growth of the neighbouring areas affects a given region. The study examines Northern Hungary, one of the most backward regions in Hungary (based on GDP per capita). Eurostat (2010) reports this region is among the poorest twenty regions within the European Union (based on GDP per capita PPP, Northern Hungary is the 259th among the 271 regions of the European Union). [ABSTRACT FROM AUTHOR]

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]

Are economic growth and social expenditure effective in decreasing poverty and income inequality in the European Union? We try to provide an answer to this question by using a Panel VAR model for the period from 2010 to 2019, using a sample of 28 European member states plus Norway and Iceland. We find that although both economic growth and social expenditure decrease poverty, economic growth is more effective at decreasing poverty than social expenditure. However, when it comes to income inequality, economic growth seems to increase it, while social expenditure seems to lower it. [ABSTRACT FROM AUTHOR]

In this paper, we evaluate income distributions in four European countries (Austria, Italy, Spain and Hungary) using two complementary approaches: a standard approach based on reported incomes in survey data, and a microsimulation approach, where taxes and benefits are simulated. These two approaches may be expected to generate slightly different results, particularly in respect of individuals on lower incomes, because benefit receipts tend to be under-reported in survey data, and over-estimated in microsimulation procedures. However, we find that the two approaches do in fact produce reasonably consistent results, in terms of both inequality measures and poverty rates. To the extent that the results differ, we explore the reasons why these differences arise, and suggest directions for future research, in which each approach may inform improvements in the other. [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]

The author comments on an article about poverty and income distribution in Thailand. He explains why Thailand is an extensively examined country. He considers the role of foreign direct investment (FDI) and foreign financing in the growth of the country. He discusses the association between poverty and growth.

This paper analyses the relationship between the following indicators: income inequality, gross domestic product, risk of poverty threshold and median equivalized net income for a panel of 28 countries of European Union (EU) over the period 2005-2016. Two theoretical regression models, a linear and a quadratic one, are used to estimate the influence on income inequality of the other three indicators. Empirical estimations, using panel data techniques on three different data panels, confirm the Kuznets hypothesis that income inequality tends to increase with early economic development and tends to decrease when a country reaches a certain level of development. We found that for emerging EU countries, income inequality has a growing tendency with a positive economic growth and maybe reduced by increasing risk of poverty threshold or median equivalized net income. For highly developed EU countries the situation is completely opposite. At EU level, the influence of gross domestic product on income inequality is strongly determined by its trend in the highly developed EU countries, while the influence of risk of poverty threshold and median equivalized net income on income inequality is strongly determined by their trend in the emerging EU countries. [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]

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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 presents the most important dilemmas concerning socio-economic development worldwide, especially the matters of wealth inequality between countries in «the South» and «the North», and also controversies over colonisation and decolonisation. In the paper we present numerous examples illustrating the lack of an explicit division of the world into the poor South and the rich North. We also take re-colonisation into consideration, as a concept of transformations in the contemporary world that is suggested in modern researches. We are now past the decolonisation period, and currently none of the old colonial empires owns colonies in the common meaning of the word. However, the topic is still relevant, as we can still hear mentions of so-called post-colonialism, and the swirling economic discussions still have to take into account history, geography and the ideological background. [ABSTRACT FROM AUTHOR]

This paper explores the dynamics of economic growth, poverty, inequality and migration in Thailand, and evaluates the relevance of Lewis model to Thailand's long-term development. Thai economy seems to follow the latter part of the Kuznets curve since mid-1990s, amidst the global trend of rising internal inequality. Also, Lewis model's predictions were not present, both in the overall pattern of internal migration and the labor market conditions in either urban or rural areas. Dualism in Thailand is better characterized by formal/informal dichotomy. However, the Lewis model can be relevant if modified by including the role of foreign workers. [ABSTRACT FROM AUTHOR]

The economic discourse on bringing about a fairer or more equal society has thus tended to focus heavily on increasing the cash income of disadvantaged households, while lessening the focus on non-cash economic benefits derived from social policies. The dominance of cash in the economic inequality discourse leads inexorably to (perhaps well-intentioned) policies to reduce personal taxation for lower income households and to increase their cash incomes, including the recently popular idea of an unconditional Universal Basic Income. This paper argues that innovative direct solutions to the provision of various goods and services by alternative means tend to be squeezed out of the current discourse about economic inequality. Through analysis of the Minimum Essential Standard of Living, an argument is made that a more sophisticated social policy discourse is needed to tackle disparities in people’s material conditions, beyond a focus on cash income, in order to bring about the foundational conditions for a good society even in the context of low economic growth and/or fiscal austerity. [ABSTRACT FROM AUTHOR]

This paper has aimed to explore the inter-linkages of economic growth, poverty and inequality in the context of the European Union (EU) countries during the period of 2005 - 2016. Descriptive statistics analysis and econometric methods have been applied for this purpose. Research results have revealed statistically significant interrelationships between growth and poverty in half of the European Union countries. Moreover, in majority of these countries poverty has been elastic of economic growth. It should be noted, that the countries with higher level of economic development have relatively smaller share of population living below the national poverty lines. However, we cannot say the same about the growth - inequality relationships, which have varied across the EU countries. There are economically strong countries with relatively high income inequality and economically weaker countries with lower income distribution coefficients. However, in many cases poverty and income inequality tend to move in the same direction, i.e. as one increases, the other as well and vice versa. Finally, the insights of the research could be useful in developing a common strategy for smart, sustainable and inclusive growth and achieving the goals for Europe 2020. [ABSTRACT FROM AUTHOR]

This paper shows that in Tanzania, economic growth contributes to job creation and employment opportunities, however, it does very little to curb income inequality. Using official data from various local sources compiled by the National Bureau of Statistics and international the paper provides an explanation for why the creation of wealth and employment opportunities in Tanzania fails to bring the level of poverty to a level roughly comparable to what is found in the region to reduce inequality between the richer and the poorer segments of society. [ABSTRACT FROM AUTHOR]

This article examines the relationships between extreme poverty, economic growth, and inequality, assesses if changes in inequality dampen the impact of income on extreme poverty, and determines the magnitude of the inequality growth trade-off index in Costa Rica, the Dominican Republic, and Honduras. A country-specific ARDL bound regression was conducted. The findings indicate the presence of direct and indirect dampening impacts of changes in inequality on income growth and extreme poverty reduction. The magnitude of the inequality growth trade-off- index indicates whether to prioritize growth and/or inequality reducing policies. This means that the higher the inequality, as in Honduras, the higher the economic or average income growth rate required to compensate for the increase in inequality to achieve a given level of extreme poverty reduction. Accordingly, there is no one-size-fits-all policy approach to tackling extreme poverty. [ABSTRACT FROM AUTHOR]

Indonesia has experienced significant economic growth in recent years (on average, 5% in 2000–08), but many people are still living in poverty. Income inequality, as measured by the official Gini coefficient, has also increased. This paper evaluates household income and income inequality in Indonesia, assessing both market and non-market income to reach a more accurate measure of how actual income affects living standards. We find that if household income considers non-market income, income distribution is significantly more balanced, the coefficient of income inequality falls from 0.41 to 0.21 and the income share of the population's poorest deciles increases more than fivefold. The results suggest that market income alone is a misleading measure of income distribution in Indonesia. [ABSTRACT FROM AUTHOR]

The paper examines the change in the income distribution of developed and developing countries over the recent period of globalization from 1980 to the present. The change in the income distribution of developing countries is also measured for those developing countries that globalized and those that did not. The paper finds that in terms of the three major measures of central tendency, the real personal income ratios between developed and developing countries have been substantially reduced during the 1980-2005 period of rapid globalization, especially at the mode, where the most severe poverty lies. [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]

Purpose - It is now widely recognized that human development (HD) and economic growth (EG) are intertwined in two-way feedback processes either leading to an upward spiral of development or a poverty trap. This concept is used to overcome one of the limitations of a previous study by Qureshi which assumes exogenous gross domestic product (GDP). With endogenous GDP formulation, the impact of public expenditure on HD and EG in Pakistan is examined. Design/methodology/approach - System dynamics approach is used to model, identify and help manage the development path of HD and EG in Pakistan given alternative policies for public expenditure on HD and EG. For this purpose the model endogenously determines path of population cohorts, and education, health and economic indicators. Findings - The simulation results suggest that the current level of public expenditure on HD is extremely low and any further decrease will have irreversible negative impact on HD and economic indicators, even if the resources so saved are effectively invested in EG. Further, higher public expenditure on EG may neither result into better HD indicators nor economic indicators. On the contrary, higher public expenditure on HD not only improves HD indicators but also supplements EG. The results of this study conform to the results of earlier research and challenge the very basis of fiscal policy in Pakistan which has continually ignored HD over decades. Research limitations/implications - The model boundary excludes possible causal links of public expenditure, HD and income distribution. Identification and inclusion of these causalities may improve understanding of perpetuating asymmetric income distribution in Pakistan its role in HD and EG trade-off. Practical implications - This paper suggests reorientation of fiscal policy in Pakistan and to anchor it to HD by allocating more public funds. Originality/value - The unique characteristic of this model is explicit modelling of population cohorts in a two-way feedback relationship with economic development considering the delays and non-linearities involved in this process. [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]

Social assistance has attracted renewed interest in countries where economic growth is doing too little on its own to address high levels of income inequality and poverty. Research into the material effects of such programmes is important but can be misleading if it fails to capture their full meaning to intended beneficiaries and other stakeholders. This is illustrated by a case study of Peru's 'glass of milk' programme, drawing on mostly qualitative evidence of its material, social and cultural dimensions. The programme is found to be well adapted to diverse contexts, but in a way that enhances its efficacy as a gendered instrument of mass patronage rather than as a means of addressing Peru's structural inequalities. The paper also suggests that a switch to conditional cash transfers is unlikely, on its own, to change this. [ABSTRACT FROM AUTHOR]

This paper uses panel data from 61 countries at different stages of economic development over a 20-year period to investigate regional differences in the effect of corruption on economic growth and income distribution. Using two measures of corruption, we find that there are statistically significant regional differences in the growth and distributional impacts of corruption. The largest growth impact of corruption is found in African countries while OECD and Asian countries have the lowest growth impact. On the other hand, the largest distributional impact of corruption in found in Latin America. A 10% decrease in corruption increases the growth rate of income by about 1.7% in OECD and Asian countries, 2.6% in Latin American countries, and by 2.8% in African countries. A one standard deviation decrease in corruption decreases the gini coefficient of income distribution (0–1 scale) by 0.05 points, 0.14 points, 0.25 points, and 0.33 points in OECD, Asian, African, and Latin American countries, respectively. The results are robust to various specifications, measurement of corruption, measures of investment, as well as the conditioning variables. The results have interesting policy implications for economic growth, especially in low income countries with high rates of corruption. [ABSTRACT FROM AUTHOR]

This paper explores the relationship between the relative size of the Small and Medium Enterprise (SME) sector, economic growth, and poverty alleviation using a new database on the share of SME labor in the total manufacturing labor force. Using a sample of 45 countries, we find a strong, positive association between the importance of SMEs and GDP per capita growth. The data do not, however, confidently support the conclusions that SMEs exert a causal impact on growth. Furthermore, we find no evidence that SMEs alleviate poverty or decrease income inequality. [ABSTRACT FROM AUTHOR]

Poverty eradication will remain United Nations highest priority after the Millennium Development Goals-2015 deadline. Moreover, although impressive achievements in poverty cutting have been reached in the last decade, progress has been uneven, as inequality has been increasing. Hence, future poverty reduction strategies should be designed taking into account the nexus between economic development, inequality and the so-called "pro-poor factors", which represent the set of policies able to make economic growth beneficial for the poor. The aim of this paper is to provide a quantitative answer to the following questions: Does economic growth reduce poverty? If so, by how much? How economic inequality affects poverty? Does the responsiveness of poverty to growth and inequality depend on initial poverty and inequality? How do pro-poor policies influence the poverty-growth-inequality nexus? Although these questions have received a great deal of attention along the years, this paper makes use of the most complete and up-to-date comparable data on growth, poverty and inequality, as compiled by the World Bank PovcalNet. Moreover, it originally employs the System Generalised Method of Moments estimator. In particular, the present empirical exercise is built on an original unbalanced panel dataset, which comprises 109 developing countries observed between 1981 and 2008, in 8 different three-year growth spells. As for the econometric technique, System GMM has been proved to be the most efficient and best suited in the context of dynamic unbalanced panels. Our main results are in line with the existing literature. First, we find that the poverty elasticity to growth and inequality is, respectively, around -2% and 2%. Second, the poverty elasticity to growth is higher the more favorable the initial conditions (i.e. -0.89% and -2.5% for, respectively, high and low initial poverty and inequality). Third, the poverty elasticity to inequality is higher in relatively richer and more equal countries (i.e. 2.6%) than in poorer and more unequal countries (i.e. 0.39%). And, finally, we show that human capital, as measured as health and education, facilitates the effect of economic growth on poverty reduction (i.e. poverty elasticity of -0.89% and -2.5% for, respectively, high and low infant mortality). Our analysis suggests that, in designing policy reduction strategies, policy makers should carefully take into considerations initial poverty and the initial income distribution. Moreover, as for the fundamental importance of pro-poor policies, and human capital in particular, economic policies should go beyond the mere growth stimulus., economic policies should go beyond the mere growth stimulus. [ABSTRACT FROM AUTHOR]

The paper revisits regression-based inequality decomposition, derives further theoretical results on the factor shares and applies them in an empirical setting. Noting that the approach based on Shorrocks and Fields is not directly applicable to an important welfare-based inequality index, namely Atkinson's inequality index, we generalise it to derive shares for this index. We also derive the asymptotic distribution of all share estimators for obtaining their standard errors necessary for drawing inference. Finally, we use our theoretical results to examine the major factors that contribute to income inequality in India. Our results show that education and household size are the two most dominant factors contributing to income inequality in both rural and urban areas, followed by employment status and regional differences. [ABSTRACT FROM AUTHOR]

To achieve the Sustainable Development Goals (SDGs), countries should prioritize reducing income inequality while ensuring people have access to affordable, reliable, and modern energy. This study clearly illustrates the nexus between three aspects of energy poverty and income inequality, focusing on 77 countries from 2000 to 2019. The empirical results indicate that access to electricity contributes to reduce income inequality, while access to clean fuels and renewable energy development can increase income inequality. The results of heterogeneity analysis further reveal that at the early stage of economic development, access to clean fuels and electricity can significantly reduce income. In contrast, the development of renewable energy worsens income inequality. However, renewable energy development becomes the primary factor in reducing income inequality as economic development progresses. Furthermore, the mechanism analysis shows that energy poverty can reduce income inequality by improving public health and educational attainment. Finally, this study provides valuable policy recommendations and scientific arguments for reducing income inequality, accelerating energy access, and achieving the SDGs. • This paper uses renewable energy development as an indicator for measuring energy poverty • The direct impact and potential impact mechanisms of energy poverty on income inequality is explored. • The heterogeneous impact of energy poverty on income inequality is studied. [ABSTRACT FROM AUTHOR]

It is clear that in the transition out of the COVID-19 crisis in Colombia there will be great need for formal job creation. One source that has been widely discussed in policy circles is strengthening linkages of Colombian firms with Global Value Chains (GVCs). Another source that has received recent attention, and deservedly so, is digital infrastructure development (DID)—which can boost telework and virtual human capital accumulation. Reduction in poverty and inequality through more and better formal employment is an important aspect of a jobs and economic transformation (JET) agenda. In this paper, we explore—through a computable general equilibrium model (CGE) and a microsimulation framework—to what extent reforms of the type envisioned in the JET agenda and which could generate GVC linkages, as well as through DID, for Colombia, and we project their impact on poverty and inequality up to 2030. Our findings show limited impact of the three types of policy changes considered for GVCs—namely (i) fall in barriers for seamless business logistics, (ii) reductions in tariffs, and (iii) lower barriers to foreign direct investment (FDI). The impact of DID on inequality is also moot. There is however a modest impact on poverty reduction in the combined policy of digital infrastructure with a boost in skilled labor. This finding can be linked to different factors. First, there are relatively few direct jobs created to benefit households with low levels of human capital. Second, there might be indirect job creation through backward linkages to local suppliers by firms linked to GVCs, but this effect would be a general equilibrium effect that our CGE model with a partial equilibrium microsimulation distributional module does not fully capture. Third, the positioning of Colombian firms to latch onto GVCs, and also generate demand for local intermediate inputs and services, is not optimal. Fourth, DID may generate more general labor market opportunities through telework and virtual learning expansions but could also induce larger wage gaps as the skill premium rises so that the net effect on inequality is ambiguous. [ABSTRACT FROM AUTHOR]

This paper provides a critical assessment of Turkey's economic performance under the neoliberal economic policies which have been instrumental in generating a profound transformation in its socioeconomic structure since 1980. The paper draws special attention to the government's loss of policy autonomy and the democratic deficit at the initial and implementation stages of this transformation. It then evaluates Turkey's economic performance on the basis of indicators with medium and long-term impacts, such as investment, saving, industrialization, unemployment, and income distribution. This assessment shows that the neoliberal model has failed to fulfill its promises, with the Turkish economy failing to achieve performance equal to that under the previous import-substitution strategy or in comparable countries. The paper then identifies the main problem areas confronting the economy: the current account deficit, the labor market, insufficient industrial progress and income distribution, and poverty. To solve these problems, it calls for both a radical rethinking of the neoliberal policy regime and for proactive state intervention to stimulate saving and investment as part of a new development strategy, giving primary importance to industrialization, employment creation, and more equitable income distribution. [ABSTRACT FROM AUTHOR]

Poverty has a long history in Africa. Yet, the most conventional and influential history of African poverty is a very short one. As told by the World Bank, the history of poverty starts in the 1980s with the first Living Standard Measurement Study. This history of poverty by numbers is also a very narrow one. There is a disconnect between the theoretical and historical underpinnings of how academics understand and define poverty in Africa, and how it has been quantified in practice. While it is generally agreed that poverty is multidimensional and has certain time- and location-specific aspects, the shorthand definition for poverty is the dollar-per-day metric. This article reveals how particular types of knowledge about poverty have gained prominence and thus shaped the dominant interpretation of poverty in Africa. It argues that, based on other numerical evidence, the history of poverty in Africa could be radically different from the dominant interpretation today. [ABSTRACT FROM AUTHOR]

Changes in the extent of poverty are affected not only by growth in the mean income but also by changes in the distribution of income. The effect of these two factors can be separately measured by decomposing the total change in poverty. In this context, this paper uses new tools to quantify relative contribution of growth and inequality using the latest available household survey data. The findings of this paper suggest that the role of inequality remained important in mitigating the adverse effects of growth on poverty during the first period, 1998-99 to 2001-02. Alternatively, the role of growth has been fundamental in reducing absolute poverty in the second period, 2001-02 to 2004-05. Poverty would have been further reduced, had the distribution not worsened during this period. The policy implication is that while pursuit of growth as a strategy is important for poverty reduction in Pakistan, the contribution of redistribution in favour of the poor should not be ignored if the effect of growth on poverty reduction is to be enhanced. Thus, the major challenge is to pursue a poverty reduction strategy that is based on growth with redistribution. [ABSTRACT FROM AUTHOR]

The impact of remittance flows on growth and income distribution has attracted a great deal of attention, but the theoretical and empirical literature on the relationship between remittances and economic development is far from clear. Although there is wide consensus that foreign remittances can help the receiving households to increase income, consumption and capabilities to cope with socioeconomic shocks, there has been little quantitative research on impacts of remittances on household welfare and poverty. Our paper seeks to fill some of these gaps proposing an empirical analysis of the role of remittances as a tool for reducing inequality and covering households against poverty and social exclusion risks. The empirical analysis focuses on four Eastern European Countries: Slovenia, Poland, the Czech Republic and Hungary, and is based on the EU-SILC (European Union Statistics on Income and Living Conditions) 2005 data-set providing for each household information as to the received inter-household cash transfers and among which regular cash support from households in other countries (i.e. remittances) are included. The results show that remittances are statistically significant in terms of poverty reduction even if their effects are generally smaller than those of welfare transfers. Furthermore, the impact of remittances and welfare transfers differ across the countries considered. [ABSTRACT FROM AUTHOR]