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This paper investigates the extent to which households in rural Thailand across the income distribution are able to mitigate income risks in the face of shocks. It uses especially high‐quality household income and consumption data spanning 64 Thai villages over 15 years. The paper identifies income shocks by village‐level variations during drought conditions. It finds that richer households are better able to mitigate income risk than poorer households, in contrast to some studies of the South Asian subcontinent. These possibilities for managing income risk are shown to be correlated with the type of contract the head of household is likely to be employed in, the share of salaries in total household income, the education level of the head, the relative youth of the heads of richer households, and location effects. [ABSTRACT FROM AUTHOR]

Ireland has experienced rapid – if volatile – growth over the last three decades. While this performance looks less impressive when considered over a longer horizon and is better seen as belated convergence making up for lost time in the first 50 years of independence, this paper highlights an aspect of the Irish experience that does stand out as quite remarkable: how broad‐based and inclusive growth in household disposable income was. Drawing on over three decades of harmonised household survey data, we first show that income inequality fell substantially over this period, the product of disposable income growth that was stronger at the bottom than the middle or top of the distribution. We then tentatively suggest some important factors that might have contributed towards the patterns of growth experienced – including tax and transfer reforms, a rise in two‐earner couples and a fall in the average size of households – before concluding with some directions for future research. [ABSTRACT FROM AUTHOR]

Global food demand is expected to increase in the next decades, pushing agricultural expansion and deforestation. However, food production in agricultural lands is just one dimension of food security, to which forest goods and services also contribute. In this paper, we aimed to explore the relationship between forest cover and food security. We hypothesized that food security is improved by both human‐made and green infrastructure combined. To test this relationship, we explore the relationships between forest cover and a multidimensional index of food security that included both socioeconomic and natural variables taken from Brazilian official databases for 1141 municipalities of the Brazilian Caatinga (a seasonally tropical dry forest). The index was formed by 12 principal components axes (12 PCs) and we found that financial poverty (PC 1) and economic inequality (PC 2) were the main determinants of food insecurity in Caatinga. We found that lowest food security values were found in two contrasting contexts: one is represented by poor and unequal municipalities with high forest cover while the other refers to poor and less unequal municipalities but with little forest cover. Municipalities with intermediate levels of forest cover had slightly higher food security, a consistent pattern across time (2006–2017). Win–win scenarios where both forest cover and food security increased with time were almost as common as lose–lose situations (25% and 22% respectively). This suggests a sort of balance between forests and human‐made land uses and reinforces that natural capital contributes to food security. Zero‐hunger is a main issue for sustainable development goals, and our results adds to the notion that both sustainable use of forests and socioeconomic improvements must coexist rather than being treated as antagonistic policies. [ABSTRACT FROM AUTHOR]

The distribution of income in Russia changed significantly over the past 25 years. This paper examines the factors that have been driving the fall in inequality and poverty over two recent decades in the Russian Federation. Changes in earnings from public and private sectors and pensions have been the main sources of changes in the income distribution between 1994 and 2015. Falling inequality and poverty were the result of a decrease in the dispersion of private sector earnings and an increase in the levels of pensions and public sector earnings. Neither the evolution of socio‐demographic characteristics nor the level or structure of employment alone had big impacts. [ABSTRACT FROM AUTHOR]

This paper estimates the impact of Tunisia's tax and transfer system on inequality and poverty and assesses the benefits from public spending on education and health. Results show that Tunisia's redistributive fiscal policy reduces inequality and extreme poverty significantly. However, based on the national poverty line, the headcount ratio increases, implying that a large number of the poor people pay more in taxes than they receive in cash transfers and subsidies. This is due to a relatively high burden of personal income taxes and social security contributions for low‐income households. [ABSTRACT FROM AUTHOR]

In this paper, we examine the impact of the economic crisis and the policy reaction on inequality and relative poverty in four European countries: France, Germany, Ireland and the UK. The period examined, 2008-13, was one of great economic turmoil, yet it is unclear whether changes in inequality and poverty rates over this time period were mainly driven by changes in market income distributions or by tax-benefit policy reforms. We disentangle these effects by producing counterfactual ('no reform') scenarios using tax-benefit microsimulation and representative household surveys for each country. For the first stage of the Great Recession, we find that the policy reaction contributed to stabilising or even decreasing inequality and relative poverty in the UK, France and, especially, Ireland. Market income changes nonetheless pushed up inequality and relative poverty in France. Relative poverty increased in Germany as a result of policy responses combined with market income changes. Subsequent policy reforms, in the later stage of the crisis, had markedly different cross-country effects, decreasing overall poverty in France, increasing it in Ireland, and giving mixed effects for different subgroups in Germany and the UK. [ABSTRACT FROM AUTHOR]

This paper examines the measurement of social welfare, poverty, and inequality, taking into account features that have been found to be important welfare determinants in behavioral economics. Most notably, we incorporate reference-dependence, loss aversion, and diminishing sensitivity-aspects emphasized in Prospect Theory-to social welfare measurement. We suggest a new notion of equivalent income, the income level with which the individual would be as well off, evaluated using a standard concave utility function, as he actually is, evaluated with a reference-dependent utility function. We examine the differences between standard poverty and inequality measures based on observed income and measures that are calculated based on equivalent income. These differences are illustrated using household-level panel data from Russia and Vietnam. [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]

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]

This paper analyses a previously unused source of data – the All Media and Product Survey (AMPS) – to arrive at alternative estimates of the post-transition poverty path. The motivations for using this non-official data source are twofold: concern over the comparability of the existing official post-transition datasets – the Income and Expenditure Survey (IES) and Population Census – and a desire to extend analysis of poverty trends beyond 2001. While official data sources are generally preferred for purposes of poverty analysis, the IES and Census collect data at long (5 or 10 year) intervals, and additional years pass before these datasets become available to the public. In some cases there is also concern about data comparability between surveys. The expenditure data contained in the General Household Survey are available annually, although data are captured in a small number of categories that are not very conducive to analysis at the lower end of the income distribution. Analysis on AMPS data confirms the large decline in poverty implied by an increase of R18 billion (in 2000 Rand) in social grant payments between 2000 and 2004. The direction of this trend is consistent with recent research findings based on more frequently analysed data sources, including the work done by Agüero, Carter and May (2005), Seekings (2006 ) and Meth (2006 ). [ABSTRACT FROM AUTHOR]

This paper addresses the impact of a subsidy-an increase in someone's income-on generalized Gini inequality indices. We show that for any distribution of income there exists a 'pivotal individual' such that an increment given to an individual poorer (resp. richer) than himself, decreases (resp. increases) inequality. We characterize the pivotal individual for relative and absolute Gini indices. We show that normative prescriptions about the preferred level of inequality aversion can also be formulated in terms of the pivotal, namely the richest individual that we find just to compensate. [ABSTRACT FROM AUTHOR]

This paper starts out from a puzzle. During the past thirty years, incomes have grown more unequal, a small group at the top has captured a much greater share of resources and poverty has increased. Despite this, most people are markedly less likely to want government to redistribute income or tackle poverty and are less sympathetic towards those without jobs. The greater insecurity of many people's lives in the current crisis renders the issue more perplexing. This paper describes trends in inequality, poverty and unemployment; presents new data on attitudes, media discussion and political platforms; discusses theoretical approaches from social psychologists, political scientists, sociologists and other commentators; and considers how a more generous welfare state might be pursued. [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]

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]

C1-class interpolation methods that preserve monotonicity and convexity and are thus suitable for the estimation of the Lorenz curve from grouped data are not widely known. Instead, parametric models are usually applied for such estimation. Parametric models, however, have difficulty in accurately approximating every part of income/expenditure distributions. This paper proposes two types of C1-class shape-preserving interpolation methods. One is a piecewise rational polynomial interpolation (proposed independently by Stineman and Delbourgo) that enables consistent interpolation of the concentration curves for income/expenditure components, attaining approximately the same accuracy as that of the existing methods when applied to decile-grouped data or to more detailed aggregation. Another is a Hybrid interpolation that employs pieces of curves derived from parametric models on end intervals. Empirical comparisons show that the Hybrid interpolation (with the assistance of parametric models for class-boundary estimation) outperforms the existing methods even when applied to quintile-grouped data without class boundaries. [ABSTRACT FROM AUTHOR]

The objective of this paper is to examine the changes in Malaysian income distribution during the last three and a half decades and the reasons for the changes. It was found that the Gini ratio for Malaysia peaked in 1976 and fell thereafter to 1990. However, inequality seems to reverse its direction since then. Policies that could explain the changes in income distribution include the promotion of export-oriented industrialization, education, and training, and the restructuring of equity ownership and assistance in asset accumulation. While the various other redistributive measures in the form of rural development helped in poverty eradication, their effectiveness in redistribution needs to be improved. Several hypotheses have been forwarded to explain the widening of income inequality after 1990. These include the difference in the growth rates of incomes of the rural and urban areas, trade and globalization, and impediments to the process of internal migration. [ABSTRACT FROM AUTHOR]

This article examines whether economic inequality intensified the adverse effects of harvest, price, and income shocks during a famine. Using a parish‐level longitudinal dataset from the Finnish famine of the 1860s, it shows that a substantial proportion of the excess mortality experienced during the famine resulted from a decline in agricultural production, a decline in incomes, and a surge in food prices. The findings indicate that the adverse effects of food output fluctuations were intensified by increasing income inequality and decreasing average income, while the market‐transmitted shocks were weakened by a contraction of disposable income. The results are corroborated with multiple alternative estimation techniques, including the introduction of spatial spill‐overs. The results show that even a pre‐industrial famine affecting an impoverished society was meaningfully defined by the distribution of incomes. [ABSTRACT FROM AUTHOR]

This article examines the impact of international sanctions on the economic development of sanctioned countries in the Latin American and Caribbean regions over seven decades (1950–2019). The estimates arise from a two‐way fixed effects model that combines data from the Global Sanctions Database and the World Development Indicators Database to examine outcomes in terms of economic growth, income inequality, and the incidence and gap of poverty. The findings confirm a significant worsening of development in sanctioned countries. This includes lower growth (−0.6 percentage points) and higher inequality (+1.5 Gini coefficient points). Reduced investment as well as reduced access to credit in the private sector are the mechanisms through which the above effects take place. The results are robust to multiple specifications and have important implications for international sanctions policies. If the sanctioning country seeks to minimise the consequences for the poorest in the sanctioned country, military sanctions appear to be the most appropriate, while if the objective is to maximise these consequences, sanctions on mobility are optimal. [ABSTRACT FROM AUTHOR]

We study the short- and medium-term impacts of the recent recession on the distribution of net household income in the UK. We document trends in the distribution of income during and immediately after the economy's 6.3 per cent contraction between 2008Q1 and 2009Q2. We then use a tax and benefit microsimulation model combined with macroeconomic and demographic forecasts to project the distribution of income up to 2015-16. As in other countries, immediate impacts of the recession on net household incomes are remarkably hard to detect, but the pain was merely delayed until 2010-11 and beyond. We find that the major difference between income groups is in the timing of the reductions in income, rather than in their magnitude. For those in the middle and upper parts of the distribution, dependent mainly on labour market income, falls in real income happened largely between 2009-10 and 2011-12. For those towards the bottom, dependent more on benefit incomes, falls in real income will happen largely as a result of the post-recession fiscal tightening between 2010-11 and 2015-16. We explore the sensitivity of the results to different scenarios for employment and earnings: the central and qualitative conclusions prove robust. [ABSTRACT FROM AUTHOR]

This study investigates the potential impact of climate change and armed conflict on inequality in Sub‐Saharan Africa (SSA). The system‐GMM for a panel of 35 SSA countries is employed using annual data from 1997 to 2018. The empirical results indicate that armed conflict and climate are major drivers of inequality in SSA. The direct impact of the two determinants is more than the indirect impact. Also, the impact of armed conflict is more than the climate change. The coefficients of population growth, output growth, unemployment, natural rent, exchange rate and inflation rate are significant positive predictors of inequality in the SSA. The study advocates for a multidisciplinary inclusive growth strategy that prioritises the climate change reversal, de‐escalation of armed conflict, population control, reduction of the unemployment rate and increasing informal sector productivity, to promote inclusive growth and reduce inequality. However, sequencing the policy targets relative to the magnitude of their impact on inequality is extremely crucial. [ABSTRACT FROM AUTHOR]

Objective: This study empirically investigates the impact of economic inequality on the cost of living in U.S. metropolitan areas. Methods: Using a special Census tabulation, a standard cost‐of‐living model is sequentially augmented with measures of poverty and income inequality in a cross‐sectional regression analysis of 90 metropolitan areas; interaction and regional effects are also explored. Results: Higher costs of living are associated with increasing economic inequality, especially in the distribution of metropolitan income. The effects of household poverty are significant but less consistent. Conclusions: Reducing economic inequality would produce benefits enjoyed by all metropolitan residents via lower living costs. The benefits are likely to be greater in large, fast growing areas where income disparities are pronounced. [ABSTRACT FROM AUTHOR]

Abstract: The article evaluates prospects of the Basic Income (BI) as a development policy tool. While BI is a relatively new initiative within development policy, the article argues that it should be seen as a serious option in the future, given the changing geography of poverty and the findings from existing cash transfer schemes. The analysis is carried out as a synthesis of existing findings on BI pilot programmes, along with cash transfer instruments more generally. While not including new empirical data, the synthesis allows preliminary estimates on the likely impacts of abolishing conditioning and targeting in cash transfer schemes. Particular attention is paid to the notion of micro‐investment and the psychological conditions of micro‐investment. [ABSTRACT FROM AUTHOR]

We investigate population groups' attitude regarding inequality reduction in post-Soviet transitional countries of the Baltic, Central Asia and the Caucasus, as well as the Slavic countries and Moldova. Empirical evidence presented in this article demonstrates that despite skyrocketing inequality, erosion of social provisions and efforts to introduce an individualistic market economy ideology during the last 15 years, overall support for redistribution and welfare state efforts to counterbalance rising inequality remained strongly legitimized among citizens in all post-Soviet countries. Nevertheless, there are differences between population groups in attitude: the older, the less educated, the poor and women express more support for redistribution; while the younger, the better educated, the rich and men tend to not support redistribution. Populations in transitional countries of the Caucasus and Central Asia that face higher inequality and less effective redistribution policies expressed a strong desire for more redistribution and more active social welfare 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]

We use original 2005 household survey data from Fiji and Tonga to estimate the impact of migration and remittances on income distribution and measures of poverty. Measures of inequality and poverty based on observed, with-migration income and remittances are then compared with those based on two without-migration and remittances scenarios; one in which remittances are treated simplistically as an exogenous addition to household income, and another in which counterfactual household incomes are estimated, taking account of what the migrant members would have earned had they not migrated. The estimated effects of remittances on poverty alleviation were found to be stronger when the more rigorous, counterfactual income estimates are used, but their effect on income inequality was found to be ambiguous. The extent to which migration and remittances alleviate poverty was also found to be more substantial in Tonga, the country with a much longer migration history and higher remittance dependence. Copyright © 2008 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Income and expenditure data from 14 countries (representing one-third of the world's population), mostly from the 1970s, are used to construct national income distributions and, after normalizing by purchasing power parities, to construct a "world" distribution: of real income. The density of real-income equivalent groups (socio-economic classes) across countries is measured for the "affluent," the "well-off," and the "poor." In comparison with earlier studies, most national distributions of income seem to have been improving, the numbers of those in poverty (based on real income) are lower, and, most important (and disturbing for some) is that the "affluent" class (and those above "middle class" income levels) has (prematurely) swelled in a number of developing countries. [ABSTRACT FROM AUTHOR]