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‣ Distributions in Motion : Economic Growth, Inequality, and Poverty Dynamics

Ferreira, Francisco H.G.
Fonte: Banco Mundial Publicador: Banco Mundial
Português
Relevância na Pesquisa
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The joint determination of aggregate economic growth and distributional change has been studied empirically from at least three different perspectives. A macroeconomic approach that relies on cross-country data on poverty, inequality, and growth rates has generated some interesting stylized facts about the correlations between these variables, but has not shed much light on the underlying determinants. "Meso-" and microeconomic approaches have fared somewhat better. The microeconomic approach, in particular, builds on the observation that growth, changes in poverty, and changes in inequality are simply different aggregations of information on the incidence of economic growth along the income distribution. This paper reviews the evolution of attempts to understand the nature of growth incidence curves, from the statistical decompositions associated with generalizations of the Oaxaca-Blinder method, to more recent efforts to generate "economically consistent" counterfactuals, drawing on structural, reduced-form...

‣ Did Higher Inequality Impede Growth in Rural China?

Benjamin, Dwayne; Brandt, Loren; Giles, John
Fonte: Banco Mundial Publicador: Banco Mundial
Português
Relevância na Pesquisa
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This paper estimates the relationship between initial village inequality and subsequent household income growth for a large sample of households in rural China. Using a rich longitudinal survey spanning the years 1987-2002, and controlling for an array of household and village characteristics, the paper finds that households located in higher inequality villages experienced significantly lower income growth through the 1990s. However, local inequality s predictive power and effects are significantly diminished by the end of the sample. The paper exploits several advantages of the household-level data to explore hypotheses that shed light on the channels by which inequality affects growth. Biases due to aggregation and heterogeneity of returns to own-resources, previously suggested as candidate explanations for the relationship, are both ruled out. Instead, the evidence points to unobserved village institutions at the time of economic reforms that were associated with household access to higher income activities as the source of the link between inequality and growth. The empirical analysis addresses a number of pertinent econometric issues including measurement error and attrition...

‣ Fiscal Redistribution and Income Inequality in Latin America

Goñi, Edwin; López, J. Humberto; Servén, Luis
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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Income inequality in Latin America ranks among the highest in the world. It can be traced back to the unequal distribution of assets (especially land and education) in the region. But the extent to which asset inequality translates into income inequality depends on the redistributive capacity of the state. This paper documents the performance of Latin American fiscal systems from the perspective of income redistribution using newly-available information on the incidence of taxes and transfers across the region. The findings indicate that: (i) the differences in income inequality before taxes and transfers between Latin America and Western Europe are much more modest than those after taxes and transfers; (ii) the key reason is that, in contrast with industrial countries, in most Latin American countries the fiscal system is of little help in reducing income inequality; and (iii) in countries where fiscal redistribution is significant, it is achieved mostly through transfers rather than taxes. These facts stress the need for fiscal reforms across the region to further the goal of social equity. However...

‣ Inequality in Latin America : Determinants and Consequences

Lopez, J. Humberto; Perry, Guillermo
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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48.20439%
Latin America is together with Sub-Saharan Africa the most unequal region of the world. This paper documents recent inequality trends in the Latin American region, going beyond traditional measures of income inequality. The paper also reviews some of the explanations that have been put forward to understand the current situation, and discusses why reducing income inequality should be an important policy priority. In particular, the authors discuss channels through which inequality can affect growth and output volatility. On the whole, the analysis suggests a two-pronged approach to reduce inequality in the region that combines policies aimed at improving the distribution of assets (especially education) with elements aimed at improving the capacity of the state to redistribute income through taxes and transfers.

‣ Assessing Asset Indices

Filmer, Deon; Scott, Kinnon
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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38.125532%
This paper compares how results using various methods to construct asset indices match results using per capita expenditures. The analysis shows that inferences about inequalities in education, health care use, fertility, child mortality, as well as labor market outcomes are quite robust to the specific economic status measure used. The measures-most significantly per capita expenditures versus the class of asset indices-do not, however, yield identical household rankings. Two factors stand out in predicting the degree of congruence in rankings between per capita expenditures and an asset index. First is the extent to which per capita expenditures can be explained by observed household and community characteristics. In settings with small transitory shocks to expenditure, or with little measurement error in expenditure, the rankings yielded by the alternative approaches are most similar. Second is the extent to which expenditures are dominated by individually consumed goods such as food. Asset indices are typically derived from indicators of goods which are effectively public at the household level...

‣ The Impact of Remittances on Rural Poverty and Inequality in China

Zhu, Nong; Luo, Xubei
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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Large numbers of agricultural labor moved from the countryside to cities after the economic reforms in China. Migration and remittances play an important role in transforming the structure of rural household income. This paper examines the impact of rural-to-urban migration on rural poverty and inequality in the case of Hubei province using the data of a 2002 household survey. Since remittances are a potential substitute for farm income, the paper presents counterfactual scenarios of what rural income, poverty, and inequality would have been in the absence of migration. The results show that, by providing alternatives to households with lower marginal labor productivity in agriculture, migration leads to an increase in rural income. In contrast to many studies that suggest the increasing share of non-farm income in total income widens inequality, this paper offers support for the hypothesis that migration tends to have egalitarian effects on rural income for three reasons: (i) migration is rational self-selection - farmers with higher agricultural productivities choose to remain in local agricultural production while those with higher expected return in urban non-farm sectors migrate; (ii) poorer households facing binding constraints of land shortage are more likely to migrate; and (iii) the poorest poor benefit disproportionately from remittances.

‣ Gender and Asset Ownership : A Guide to Collecting Individual-Level Data

Doss, Cheryl; Grown, Caren; Deere, Carmen Diana
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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Ownership and control over assets such as land and housing provide direct and indirect benefits to individuals and households, including a secure place to live, the means of a livelihood, protection during emergencies, and collateral for credit that can be used for investment or consumption. Unfortunately, few studies - either at the micro or macro levels- examine the gender dimensions of asset ownership. This paper sets out a framework for researchers who are interested in collecting data on individual level asset ownership and analyzing the gender asset gap. It reviews best practices in existing surveys with respect to data collection on assets at both the household and individual levels, and shows how various questions on individually owned assets can be incorporated with a minimum of effort and cost into existing multi-topic household surveys, using examples of three Living Standard Measurement Study surveys: the 1998-99 Ghana survey, the 2000 Guatemala survey, and the 1997-98 Vietnam survey questionnaires. The analysis shows that it is feasible to add a minimal set of questions to enable calculation of the gender asset gap. Adding a series of extra questions will permit a more satisfactory and nuanced analysis of asset acquisition...

‣ Which Inequality Matters? Growth Evidence Based on Small Area Welfare Estimates in Uganda

Schipper, Youdi; Hoogeveen, Johannes G.
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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Existing empirical studies on the relation between inequality and growth have been criticized for their focus on income inequality and their use of cross-country data sets. Schipper and Hoogeveen use two sets of small area welfare estimates-often referred to as poverty maps-to estimate a model of rural per capita expenditure growth for Uganda between 1992 and 1999. They estimate the growth effects of expenditure and education inequality while controlling for other factors, such as initial levels of expenditure and human capital, family characteristics, and unobserved spatial heterogeneity. The authors correct standard errors to reflect the uncertainty due to the fact that they use estimates rather than observations. They find that per capita expenditure growth in rural Uganda is affected positively by the level of education as well as by the degree of education inequality. Expenditure inequality does not have a significant impact on growth.

‣ Asset Inequality and Agricultural Growth: How Are Patterns of Asset Inequality Established and Reproduced?

Sabates-Wheeler, Rachel
Fonte: Washington, DC: World Bank Publicador: Washington, DC: World Bank
Português
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The relationship between distributions of asset inequality, how these distributions are created and maintained, and agricultural growth are explored. The paper studies Ethiopian agriculture to investigate how differential access to productive assets in the agricultural sector, at various levels (regional, community and household), effect inequalities in agricultural outcomes in terms of productivity and poverty. The dominant discourse on agricultural productivity and distribution has been largely focused on input-output relationships, defined and measured with a yardstick specific to economics. In this study, the processes and institutions that link inequality and productivity are explored. In the Ethiopian case, the persistent nature of inequality is causally related to historical choices and path dependency. What is observed is a complex system whereby inequality affects growth which in turn reinforces processes that exacerbate and reproduce inequalities.

‣ Globalization, Poverty, and Inequality since 1980

Dollar, David
Fonte: Oxford University Press on behalf of the World Bank Publicador: Oxford University Press on behalf of the World Bank
Tipo: Artigo de Revista Científica
Português
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One of the most contentious issues of globalization is the effect of global economic integration on inequality and poverty. This article documents five trends in the modern era of globalization, starting around 1980. The first trend is that growth rates in poor economies have accelerated and are higher than growth rates in rich countries for the first time in modern history. Developing countries per capita incomes grew more than 3.5 percent a year in the 1990s. Second, the number of extremely poor people in the world has declined significantly. The share of people in developing economies living on less than dollar 1 a day has been cut in half since 1981, though the decline in the share living on less than dollar 2 per day was much less dramatic. Third, global inequality has declined modestly, reversing a 200-year trend toward higher inequality. Fourth, within-country inequality in general is not growing, though it has risen in several populous countries (China, India, and the United States). Fifth, wage inequality is rising worldwide. This may seem to contradict the fourth trend...

‣ The Political Economy of Public Spending on Education, Inequality, and Growth

Gradstein, Mark
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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Public provision of education has often been perceived as universal and egalitarian, but in reality it is not. Political pressure typically results in incidence bias in favor of the rich. The author argues that the bias in political influence resulting from extreme income inequalities is particularly likely to generate an incidence bias, which we call social exclusion. This may then lead to a feedback mechanism whereby inequality in the incidence of public spending on education breeds higher income inequality, thus generating multiple equilibria: with social exclusion and high inequality; and with social inclusion and relatively low inequality. The author also shows that the latter equilibrium leads to higher long-run growth than the former. An extension of the basic model reveals that spillover effects among members of social groups differentiated by race or ethnicity may reinforce the support for social exclusion.

‣ Economic Growth, Inequality, and Poverty : Findings from a New Data Set

Adams, Richard H., Jr.
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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The author uses new data from 50 developing countries and 101 intervals to examine the impact of economic growth on poverty and inequality. He finds that growth represents an important means for reducing poverty in the developing world. When economic growth is measured by survey mean income (consumption), there is a strong, statistical link between growth and poverty reduction. When economic growth is measured by GDP per capita, the statistical relationship between growth and poverty reduction is still present, albeit not quite as strong. Economic growth reduces poverty because growth has little impact on income inequality. In the data set income inequality rises on average less than 1.0 percent a year. Since income distributions are relatively stable over time, economic growth tends to raise incomes for all members of society, including the poor. When growth is measured by survey mean income (consumption), the elasticity of poverty with respect to growth is -2.59. In other words, on average, a 10 percentage point increase in economic growth (measured by survey mean income) will produce a 25.9 percent decrease in the proportion of people living in poverty ($1 a person a day).

‣ Polarization, Politics, and Property Rights : Links between Inequality and Growth

Keefer, Philip; Knack, Stephen
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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Most efforts to trace the effects of income inequality on growth have focused on redistribution. However, empirical investigation has not substantiated either the positive association of income inequality with redistribution or the negative association of redistribution with economic growth. The authors analyze the effects of inequality in the broader context of social polarization. They argue that social polarization, whether rooted in income inequality or in ethnic tension, makes large changes in current policies (including those guaranteeing the security of contract and property rights) more likely under a wide range of institutional arrangements. The resulting uncertainties in the policy and contractual environment hinder growth. They find strong empirical support for both parts of this argument. The policy implications of their argument are quite distinct from those of arguments that inequality reduces growth by increasing pressures for redistribution. If redistributive policies per se were to blame for the low growth resulting from inequality...

‣ Inequality of Opportunity and Economic Growth : A Cross-Country Analysis

Ferreira, Francisco H.G.; Lakner, Christoph; Lugo, Maria Ana; Ozler, Berk
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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Income differences arise from many sources. While some kinds of inequality, caused by effort differences, might be associated with faster economic growth, other kinds, arising from unequal opportunities for investment, might be detrimental to economic progress. This study uses two new metadata sets, consisting of 118 household surveys and 134 Demographic and Health Surveys, to revisit the question of whether inequality is associated with economic growth and, in particular, to examine whether inequality of opportunity -- driven by circumstances at birth -- has a negative effect on subsequent growth. The results are suggestive but not robust: while overall income inequality is generally negatively associated with growth in the household survey sample, we find no evidence that this is due to the component associated with unequal opportunities. In the Demographic and Health Surveys sample, both overall wealth inequality and inequality of opportunity have a negative effect on growth in some of the preferred specifications...

‣ Asset Distribution, Inequality, and Growth

Deininger, Klaus; Olinto, Pedro
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
Português
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With the recent resurgence of interest in equity, inequality, and growth, the possibility of a negative relationship between inequality and economic growth, has received renewed interest in the literature. Faced with the prospect that high levels of inequality may persist, and give rise to poverty traps, policymakers are paying more attention to the distributional implications of macroeconomic policies. Because high levels of inequality may hurt overall growth, policymakers are exploring measures to promote growth and equity at the same time. How the consequences of inequality are analyzed, along with the possible cures, depends partly on how inequality is measured. The authors use assets (land) rather than income - and a GMM estimator - to examine the robustness of the relationship between inequality and growth that has been observed in the cross-sectional literature, but has been drawn into question by recent studies using panel techniques. They find evidence that asset inequality - but not income inequality - has a relatively large negative impact on growth. They also find that a highly unequal distribution of assets reduces the effectiveness of educational interventions. This means that policymakers should be more concerned about households' access to assets...

‣ Inequality in China : An Overview

Knight, John
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
Português
Relevância na Pesquisa
47.807104%
This paper provides an overview of research on income inequality in China over the period of economic reform. It presents the results of two main sources of evidence on income inequality and, assisted by various decompositions, explains the reasons income inequality has increased rapidly and the Gini coefficient is now almost 0.5. This paper evaluates the degree of income inequality from the perspectives of people's subjective well-being and government concerns. It poses the following question: has income inequality peaked? It also discusses the policy implications of the analysis. The concluding comments of this paper propose a research agenda and suggest possible lessons from China's experience that may be useful for other developing countries.

‣ Brazil : Inequality and Economic Development, Volume 1. Policy Report

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Tipo: Economic & Sector Work :: Poverty Assessment; Economic & Sector Work
Português
Relevância na Pesquisa
37.807102%
The present Report is motivated by the coming together o f three widespread perceptions about inequality, two somewhat newer and one long-standing. The two newer ones are; (i) that inequality may matter for the country's economic development, and (ii) that public policy can and should do something about it. The old perception, which is well borne out b y the facts, is that Brazil occupies a position o f very high inequality in the international community. Therefore, this report tries to explain what makes Brazil so unequal and to what extent the interaction o f labor market forces and public policies -or the lack of them- contribute to this undesirable outcome. For instance, in what measure is social mobility becoming more independent o f family background thanks to progressive public policies in basic education, health and nutrition. Accordingly, the report is organized around three basic questions. The first section asks why inequality might matter for the country's economic development. Why it matters for poverty reduction...

‣ Institutional Pathways to Equity : Addressing Inequality Traps

Bebbington, Anthony J.; Dani, Anis A.; de Haan, Arjan; Walton, Michael
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Publication; Publications & Research :: Publication
Português
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Inequalities and development: dysfunctions, traps, and transitions by Anthony J. Bebbington, Anis A. Dani, Arjan de Haan, and Michael Walton. Asset inequality and agricultural growth: how are patterns of asset inequality established and reproduced? By Rachel Sabates. Beneath the categories: power relations and inequalities in Uganda by Joy M. Moncrieffe. Inequalities within India's poorest regions: why do the same institutions work differently in different places? By Arjan de Haan. Indigenous political voice and the struggle for recognition in Ecuador and Bolivia by Jose Antonio Lucero. Cash transfers for older people reduce poverty and inequality by Armando Barrientos. Mineral wealth, conflict, and equitable development by Michael L. Ross. Spain: development, democracy, and equity by Carles Boix.

‣ Income Inequality and Violent Crime : Evidence from Mexico's Drug War

Enamorado, Ted; López-Calva, Luis-Felipe; Rodriguez Castelan, Carlos; Winkler, Hernán
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
Português
Relevância na Pesquisa
37.80119%
The relationship between income inequality and crime has attracted the interest of many researchers, but little convincing evidence exists on the causal effect of inequality on crime in developing countries. This paper estimates this effect in a unique context: Mexico's Drug War. The analysis takes advantage of a unique data set containing inequality and crime statistics for more than 2,000 Mexican municipalities covering a period of 20 years. Using an instrumental variable for inequality that tackles problems of reverse causality and omitted variable bias, this paper finds that an increment of one point in the Gini coefficient translates into an increase of more than 10 drug-related homicides per 100,000 inhabitants between 2006 and 2010. There are no significant effects before 2005. The fact that the effect was found during Mexico's Drug War and not before is likely because the cost of crime decreased with the proliferation of gangs (facilitating access to knowledge and logistics, lowering the marginal cost of criminal behavior)...

‣ Income Inequality in Urban China: A Comparative Analysis between Urban Residents and Rural-Urban Migrants

Zhang, Lewei
Fonte: Universidade Duke Publicador: Universidade Duke
Tipo: Masters' project
Publicado em 22/04/2011 Português
Relevância na Pesquisa
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EXECUTIVE SUMMARY Since the economic reform in the late 1970s, China’s economy has experienced consistently rapid growth, with a drastic change of production pattern and income distribution. The increasing income inequality, which is of importance to social justice and economic potential, has raised concerns in China. Because of rapid urbanization, millions of Chinese are flowing into cities from rural areas, so the income inequality within urban areas has received more research attention in recent years. Given the unique household registration system (Hukou) in China, the urban population can be divided into urban residents who are born in cities with urban Hukou and rural-urban migrants who are originally from rural areas with rural Hukou. The two subgroups have quite different characteristics and do not enjoy the same level of social benefits. Previous studies have not given enough focus on the migrant subgroup in terms of income inequality. To better understand income inequality issues in urban China, this study performs a comparative analysis between the two subgroups of urban residents and rural-urban migrants, seeking to answer the following questions: What are the income inequality levels between subgroups of urban residents and rural-urban migrants...