Measuring Pro-poor Growth

Measuring Pro-poor Growth

Author: Martin Ravallion

Publisher:

Published: 2001

Total Pages: 16

ISBN-13:

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New tools allow one to study the incidence of economic growth by initial level of income, and to measure the rate of pro-poor growth in an economy. An application is provided using data for China in the 1990s.


On Various Ways of Measuring Pro-poor Growth

On Various Ways of Measuring Pro-poor Growth

Author: Joseph Deutsch

Publisher:

Published: 2011

Total Pages:

ISBN-13:

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This paper examines three possible approaches to pro-poor growth. The first one assumes that the poverty line remains constant in real terms over time. The second perspective examines the case where the poverty line is equal to half the median of the income distribution but assumes that such a poverty line is determined exogenously. Finally we also propose a third type of decomposition of the change in poverty, one which is obtained when the poverty line is assumed to be endogenous. In addition, whatever the assumption made concerning the poverty line, we take both a relative and an absolute approach to inequality measurement when defining pro-poor growth. With a relative approach to pro-poor growth it is assumed that inequality does not to vary when all incomes are multiplied by a constant whereas, with an absolute approach to pro-poor growth, inequality is supposed not to vary when an equal sum is added to all incomes. The empirical illustration covers the period 1990-2013;2006 in Israel and the analysis is based on the use of the FGT poverty index. It turns out that the assumptions made concerning the way the poverty line is defined and the choice between a relative and an absolute approach to pro-poor growth greatly affect the results. As a whole however growth was pro-rich in Israel during the 1990-2013;2006 period. -- inequality ; Israel ; pro-poor growth ; Watts index


Pro-Poor Growth

Pro-Poor Growth

Author: Martin Ravallion

Publisher:

Published: 2016

Total Pages: 28

ISBN-13:

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These days it seems that almost everyone in the development community is talking about quot;pro-poor growth.quot; What exactly is it, and how can we measure it? Is ordinary economic growth always quot;pro-poor growthquot; or is that some special kind of growth? And if it is something special, what makes it happen? Ravallion first reviews alternative approaches to defining and measuring quot;pro-poor growth.quot; He then analyzes evidence on whether growth is pro-poor, what factors make it more pro-poor (including the role played by both initial inequality and changing inequality), and whether the factors that make the distribution of the gains from growth pro-poor come at a cost to growth. The author identifies some priorities for future research.This paper - a product of the Poverty Team, Development Research Group - is part of a larger effort in the group to contribute to knowledge about the link between economic growth and poverty reduction.


Growth, Inequality and Poverty

Growth, Inequality and Poverty

Author: Martin Ravallion

Publisher: World Bank Publications

Published: 2001

Total Pages: 32

ISBN-13:

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One side in the current debate about who benefits from growth has focused solely on average impacts on poverty and inequality, while the other side has focused on the diverse welfare impacts found beneath the averages. Both sides have a point.


Links Between Growth, Inequality, and Poverty: A Survey

Links Between Growth, Inequality, and Poverty: A Survey

Author: Ms. Valerie Cerra

Publisher: International Monetary Fund

Published: 2021-03-12

Total Pages: 54

ISBN-13: 1513572660

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Is there a tradeoff between raising growth and reducing inequality and poverty? This paper reviews the theoretical and empirical literature on the complex links between growth, inequality, and poverty, with causation going in both directions. The evidence suggests that growth can be effective in reducing poverty, but its impact on inequality is ambiguous and depends on the underlying sources of growth. The impact of poverty and inequality on growth is likewise ambiguous, as several channels mediate the relationship. But most plausible mechanisms suggest that poverty and inequality reduce growth, at least in the long run. Policies play a role in shaping these relationships and those designed to improve equality of opportunity can simultaneously improve inclusiveness and growth.


The Composition of Growth Matters for Poverty Alleviation

The Composition of Growth Matters for Poverty Alleviation

Author: Norman Loayza

Publisher: World Bank Publications

Published: 2006

Total Pages: 38

ISBN-13:

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This paper contributes to explain the cross-country heterogeneity of the poverty response to changes in economic growth. It does so by focusing on the structure of output growth. The paper presents a two-sector theoretical model that clarifies the mechanism through which the sectoral composition of growth and associated labor intensity can affect workers' wages and, thus, poverty alleviation. Then in presents cross-country empirical evidence that analyzes first, the differential poverty-reducing impact of sectoral growth at various levels of disaggregation, and the role of unskilled labor intensity in such differential impact. The paper finds evidence that not only the size of economic growth but also its composition matters for poverty alleviation, with the largest contributuons from labor-intensive sectors (such as agriculture, construction, and manufacturing). The results are robust to the influence of outliers, alternative explanations, and various poverty measures.