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In this study, we examined the relationship between determinants of governance and poverty reduction. We also investigated how female participation in the labour market helps alleviate poverty. We collected the balanced panel data of 29 countries over the period 2004–2016 from the World Bank database and Worldwide Governance Indicators database. Results indicated that robust governance is necessary for poverty reduction and that policy implementation timeliness is more likely to mitigate poverty. Moreover, the inclusion of females in the labour market and an efficient governance system contribute to enhanced well-being among the poor. [ABSTRACT FROM AUTHOR]

Economic inequality in South America decreased steadily since 2002. However, as the beginning of the 2010s marked the end of the commodities boom in the region, economic inequality showed constant or even increasing rates in some of these countries. The decrease in economic inequality has often been related to the impact of the macro economic changes, like the boom of the commodity prices and the institutional reinforcement, and changes in the labor market. Therefore, the proposedhyphotesis is that productive capacity improvement of the less educated has played a key role in reducing inequality. Productive capacity takes into consideration three variables related to hard and soft skills to work, which are educational coverage, internet access and life conditions. Results show that, in addition to demand forces, the improvement of the productive capacity of the less educated is positively and significantly related to the reduction of inequality in South America in 2002–2011. [ABSTRACT FROM AUTHOR]