What is Behind the Decline in Poverty Since 2000? Evidence from Bangladesh, Peru and Thailand

This paper quantifies the contributions of different factors to poverty reduction observed in Bangladesh, Peru and Thailand over the last decade. In contrast to methods that focus on aggregate summary statistics, the method adopted here generates e...

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Main Authors:	Inchauste, Gabriela, Olivieri, Sergio, Saavedra, Jaime, Winkler, Hernan
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Online Access:	http://documents.worldbank.org/curated/en/2012/09/16739242/behind-decline-poverty-2000-evidence-bangladesh-peru-thailand http://hdl.handle.net/10986/12041

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spelling	okr-10986-120412021-04-23T14:02:59Z What is Behind the Decline in Poverty Since 2000? Evidence from Bangladesh, Peru and Thailand Inchauste, Gabriela Olivieri, Sergio Saavedra, Jaime Winkler, Hernan This paper quantifies the contributions of different factors to poverty reduction observed in Bangladesh, Peru and Thailand over the last decade. In contrast to methods that focus on aggregate summary statistics, the method adopted here generates entire counterfactual distributions to account for the contributions of demographics and income from labor and non-labor sources in explaining poverty reduction. The authors find that the most important contributor was the growth in labor income, mostly in the form of farm income in Bangladesh and Thailand and non-farm income in the case of Peru. This growth in labor incomes was driven by higher returns to individual and household endowments, pointing to increases in productivity and real wages as the driving force behind poverty declines. Lower dependency ratios also helped to reduce poverty, particularly in Bangladesh. Non-labor income contributed as well, albeit to a smaller extent, in the form of international remittances in the case of Bangladesh and through public and private transfers in Peru and Thailand. Transfers are more important in explaining the reduction in extreme compared with moderate poverty. 2013-01-02T20:34:19Z 2013-01-02T20:34:19Z 2012-09 http://documents.worldbank.org/curated/en/2012/09/16739242/behind-decline-poverty-2000-evidence-bangladesh-peru-thailand http://hdl.handle.net/10986/12041 English en_US Policy Research Working Paper; No. 6199 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Latin America & Caribbean South Asia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
geographic_facet	East Asia and Pacific Latin America & Caribbean South Asia
relation	Policy Research Working Paper; No. 6199
description	This paper quantifies the contributions of different factors to poverty reduction observed in Bangladesh, Peru and Thailand over the last decade. In contrast to methods that focus on aggregate summary statistics, the method adopted here generates entire counterfactual distributions to account for the contributions of demographics and income from labor and non-labor sources in explaining poverty reduction. The authors find that the most important contributor was the growth in labor income, mostly in the form of farm income in Bangladesh and Thailand and non-farm income in the case of Peru. This growth in labor incomes was driven by higher returns to individual and household endowments, pointing to increases in productivity and real wages as the driving force behind poverty declines. Lower dependency ratios also helped to reduce poverty, particularly in Bangladesh. Non-labor income contributed as well, albeit to a smaller extent, in the form of international remittances in the case of Bangladesh and through public and private transfers in Peru and Thailand. Transfers are more important in explaining the reduction in extreme compared with moderate poverty.
format	Publications & Research :: Policy Research Working Paper
author	Inchauste, Gabriela Olivieri, Sergio Saavedra, Jaime Winkler, Hernan
spellingShingle	Inchauste, Gabriela Olivieri, Sergio Saavedra, Jaime Winkler, Hernan What is Behind the Decline in Poverty Since 2000? Evidence from Bangladesh, Peru and Thailand
author_facet	Inchauste, Gabriela Olivieri, Sergio Saavedra, Jaime Winkler, Hernan
author_sort	Inchauste, Gabriela
title	What is Behind the Decline in Poverty Since 2000? Evidence from Bangladesh, Peru and Thailand
title_short	What is Behind the Decline in Poverty Since 2000? Evidence from Bangladesh, Peru and Thailand
title_full	What is Behind the Decline in Poverty Since 2000? Evidence from Bangladesh, Peru and Thailand
title_fullStr	What is Behind the Decline in Poverty Since 2000? Evidence from Bangladesh, Peru and Thailand
title_full_unstemmed	What is Behind the Decline in Poverty Since 2000? Evidence from Bangladesh, Peru and Thailand
title_sort	what is behind the decline in poverty since 2000? evidence from bangladesh, peru and thailand
publisher	World Bank, Washington, DC
publishDate	2013
url	http://documents.worldbank.org/curated/en/2012/09/16739242/behind-decline-poverty-2000-evidence-bangladesh-peru-thailand http://hdl.handle.net/10986/12041
_version_	1764418816929955840

What is Behind the Decline in Poverty Since 2000? Evidence from Bangladesh, Peru and Thailand

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