Search

Should income inequality be of concern in developing countries? New data reveal less income inequality in the developing world than 30 years ago. However, this is due to falling inequality between countries. Average inequality within developing countries has been slowly rising, though staying fairly flat since 2000. As a rule, higher rates of growth in average incomes have not put upward pressure on inequality within countries. Growth has generally helped reduce the incidence of absolute poverty, but less so in more unequal countries. High inequality also threatens to stall future progress against poverty by attenuating growth prospects. Perceptions of rising absolute gaps in living standards between the rich and the poor in growing economies are also consistent with the evidence., (Copyright © 2014, American Association for the Advancement of Science.)

Can self-assessments of health reveal the true health differentials between 'rich' and 'poor'? The potential sources of bias include psychological adaptation to ill-health, socioeconomic covariates of health reporting errors and income measurement errors. We propose an estimation method to reduce the bias by isolating the component of self-assessed health that is explicable in terms of objective health indicators and allowing for broader dimensions of economic welfare than captured by current incomes. On applying our method to survey data for Russia we find a pronounced (nonlinear) economic gradient in health status that is not evident in the raw data. This is largely attributable to the health effects of age, education and location., (Copyright (c) 2008 John Wiley & Sons, Ltd.)

We report new estimates of measures of absolute poverty for the developing world for the period 1981-2004. A clear trend decline in the percentage of people who are absolutely poor is evident, although with uneven progress across regions. We find more mixed success in reducing the total number of poor. Indeed, the developing world outside China has seen little or no sustained progress in reducing the number of poor, with rising poverty counts in some regions, notably sub-Saharan Africa. There are encouraging signs of progress in all regions after 2000, although it is too early to say whether this is a new trend. We also summarize results from estimating a new series incorporating an allowance for the higher cost of living facing poor people in urban areas. This reveals a marked urbanization of poverty in the developing world, which is stronger in some regions than others, although it remains that three-quarters of the poor live in rural areas.