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 entire counterfactual distributions to account for th...

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Main Authors: Inchauste, Gabriela, Olivieri, Sergio, Saavedra, Jamie, Winkler, Hernan
Format: Working Paper
Language:en_US
Published: World Bank, Washington, DC 2013
Subjects:
Online Access:http://hdl.handle.net/10986/12149
id okr-10986-12149
recordtype oai_dc
spelling okr-10986-121492021-04-23T14:02:59Z What Is Behind The Decline in Poverty Since 2000? Evidence from Bangladesh, Peru, and Thailand Inchauste, Gabriela Olivieri, Sergio Saavedra, Jamie Winkler, Hernan poverty Labor markets Micro-decompositions 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. 2013-01-18T21:00:37Z 2013-01-18T21:00:37Z 2012-10 http://hdl.handle.net/10986/12149 en_US Background Paper for the World Development Report 2013; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research Bangladesh Peru Thailand
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language en_US
topic poverty
Labor markets
Micro-decompositions
spellingShingle poverty
Labor markets
Micro-decompositions
Inchauste, Gabriela
Olivieri, Sergio
Saavedra, Jamie
Winkler, Hernan
What Is Behind The Decline in Poverty Since 2000? Evidence from Bangladesh, Peru, and Thailand
geographic_facet Bangladesh
Peru
Thailand
relation Background Paper for the World Development Report 2013;
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 :: Working Paper
author Inchauste, Gabriela
Olivieri, Sergio
Saavedra, Jamie
Winkler, Hernan
author_facet Inchauste, Gabriela
Olivieri, Sergio
Saavedra, Jamie
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://hdl.handle.net/10986/12149
_version_ 1764419204408147968