Unemployment-Poverty Trade-Offs

The author examines the potential trade-offs that may arise between poverty alleviation and unemployment reduction. He discusses various analytical arguments that may provide a rationale for their existence, and uses three alternative methodologies...

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Main Author: Agénor, Pierre-Richard
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, D.C. 2013
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2004/05/4973104/unemployment-poverty-trade-offs
http://hdl.handle.net/10986/14028
id okr-10986-14028
recordtype oai_dc
spelling okr-10986-140282021-04-23T14:03:21Z Unemployment-Poverty Trade-Offs Agénor, Pierre-Richard AGGREGATE LEVEL ARBITRAGE AUTOREGRESSION AVERAGE GROWTH AVERAGE GROWTH RATE CAPITAL ACCUMULATION CAPITAL FORMATION CENTRAL BANK CONSTANT RETURNS TO SCALE COUNTRY REGRESSIONS DATA SOURCES DEPENDENT VARIABLE DEVELOPING COUNTRIES DEVELOPING REGIONS DIMINISHING RETURNS DIRECT IMPACT DISCOUNTED VALUE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC SHOCKS ECONOMISTS ELASTICITY ELASTICITY OF DEMAND EQUILIBRIUM EXCHANGE RATE EXCHANGE RATES EXERCISES EXPLANATORY VARIABLES EXTERNALITY EXTREME POVERTY FUNCTIONAL FORM GDP PER CAPITA GROWTH CONTEXT GROWTH LITERATURE GROWTH PROCESS GROWTH RATE GROWTH RATES HEAD- COUNT RATIO HEADCOUNT INDEX HEADCOUNT POVERTY HEADCOUNT RATIO HIGH HOUSEHOLD SURVEY HUMAN DEVELOPMENT HUMAN DEVELOPMENT REPORT IMPORTS INCOME INCREASE POVERTY INFLATION INFLATION RATE INFORMAL ECONOMY INFORMAL SECTOR INFORMAL SECTORS INNOVATION INTERNATIONAL POVERTY LINE INTERNATIONAL POVERTY LINES LABOR FORCE LABOR MARKET LIFE EXPECTANCY LIVING STANDARDS LONG RUN LONG TERM MACROECONOMIC CONDITIONS MARGINAL COST MARGINAL PRODUCT MARKET ECONOMY MICRO DATA MINIMUM WAGE MORTALITY NATIONAL POVERTY NATIONAL POVERTY LINE 0 HYPOTHESIS OUTPUT GAP OUTPUT GROWTH OUTPUT PER CAPITA PAYROLL TAXES POLICY GOALS POOR COUNTRIES POSITIVE EXTERNALITIES POVERTY POVERTY ALLEVIATION POVERTY GAP POVERTY INDEX POVERTY LEVELS POVERTY LINE POVERTY LINES POVERTY RATE POVERTY RATES POVERTY REDUCTION PRIMARY SCHOOL PRODUCTION FUNCTION PRODUCTION TECHNOLOGY PRODUCTIVITY PRODUCTIVITY GROWTH REAL EXCHANGE RATE REAL GDP REAL INCOME REAL WAGES SAVING RATE SAVINGS SHORT TERM SIGNIFICANT EFFECT SIGNIFICANT IMPACT SIMULATION TECHNIQUES STANDARD DEVIATION TECHNICAL ASSISTANCE TRANSITION ECONOMIES UNEMPLOYMENT UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNSKILLED LABOR URBAN AREAS URBAN HOUSEHOLDS URBAN POOR URBAN POVERTY VULNERABLE GROUPS WELFARE FUNCTION WORKERS WORKING POOR YOUNG PEOPLE YOUNG WORKERS The author examines the potential trade-offs that may arise between poverty alleviation and unemployment reduction. He discusses various analytical arguments that may provide a rationale for their existence, and uses three alternative methodologies to assess their relevance: a vector autoregression framework (which is applied to Brazil and Chile), cross-country regressions, and simulations with a structural macro model linked to a household survey. Impulse response functions to output and wage shocks indicate no short-run tradeoff. between unemployment and poverty. By contrast, regression results, which control for a variety of determinants of poverty rates across countries, suggest that such a trade-off may indeed exist. Simulations with the structural model show that labor market reforms may induce both short- and long-run trade-offs between the composition of unemployment and the incidence of poverty among household groups. 2013-06-19T19:48:12Z 2013-06-19T19:48:12Z 2004-05 http://documents.worldbank.org/curated/en/2004/05/4973104/unemployment-poverty-trade-offs http://hdl.handle.net/10986/14028 English en_US Policy Research Working Paper;No.3297 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic AGGREGATE LEVEL
ARBITRAGE
AUTOREGRESSION
AVERAGE GROWTH
AVERAGE GROWTH RATE
CAPITAL ACCUMULATION
CAPITAL FORMATION
CENTRAL BANK
CONSTANT RETURNS TO SCALE
COUNTRY REGRESSIONS
DATA SOURCES
DEPENDENT VARIABLE
DEVELOPING COUNTRIES
DEVELOPING REGIONS
DIMINISHING RETURNS
DIRECT IMPACT
DISCOUNTED VALUE
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC SHOCKS
ECONOMISTS
ELASTICITY
ELASTICITY OF DEMAND
EQUILIBRIUM
EXCHANGE RATE
EXCHANGE RATES
EXERCISES
EXPLANATORY VARIABLES
EXTERNALITY
EXTREME POVERTY
FUNCTIONAL FORM
GDP PER CAPITA
GROWTH CONTEXT
GROWTH LITERATURE
GROWTH PROCESS
GROWTH RATE
GROWTH RATES
HEAD- COUNT RATIO
HEADCOUNT INDEX
HEADCOUNT POVERTY
HEADCOUNT RATIO
HIGH
HOUSEHOLD SURVEY
HUMAN DEVELOPMENT
HUMAN DEVELOPMENT REPORT
IMPORTS
INCOME
INCREASE POVERTY
INFLATION
INFLATION RATE
INFORMAL ECONOMY
INFORMAL SECTOR
INFORMAL SECTORS
INNOVATION
INTERNATIONAL POVERTY LINE
INTERNATIONAL POVERTY LINES
LABOR FORCE
LABOR MARKET
LIFE EXPECTANCY
LIVING STANDARDS
LONG RUN
LONG TERM
MACROECONOMIC CONDITIONS
MARGINAL COST
MARGINAL PRODUCT
MARKET ECONOMY
MICRO DATA
MINIMUM WAGE
MORTALITY
NATIONAL POVERTY
NATIONAL POVERTY LINE
0 HYPOTHESIS
OUTPUT GAP
OUTPUT GROWTH
OUTPUT PER CAPITA
PAYROLL TAXES
POLICY GOALS
POOR COUNTRIES
POSITIVE EXTERNALITIES
POVERTY
POVERTY ALLEVIATION
POVERTY GAP
POVERTY INDEX
POVERTY LEVELS
POVERTY LINE
POVERTY LINES
POVERTY RATE
POVERTY RATES
POVERTY REDUCTION
PRIMARY SCHOOL
PRODUCTION FUNCTION
PRODUCTION TECHNOLOGY
PRODUCTIVITY
PRODUCTIVITY GROWTH
REAL EXCHANGE RATE
REAL GDP
REAL INCOME
REAL WAGES
SAVING RATE
SAVINGS
SHORT TERM
SIGNIFICANT EFFECT
SIGNIFICANT IMPACT
SIMULATION TECHNIQUES
STANDARD DEVIATION
TECHNICAL ASSISTANCE
TRANSITION ECONOMIES
UNEMPLOYMENT
UNEMPLOYMENT RATE
UNEMPLOYMENT RATES
UNSKILLED LABOR
URBAN AREAS
URBAN HOUSEHOLDS
URBAN POOR
URBAN POVERTY
VULNERABLE GROUPS
WELFARE FUNCTION
WORKERS
WORKING POOR
YOUNG PEOPLE
YOUNG WORKERS
spellingShingle AGGREGATE LEVEL
ARBITRAGE
AUTOREGRESSION
AVERAGE GROWTH
AVERAGE GROWTH RATE
CAPITAL ACCUMULATION
CAPITAL FORMATION
CENTRAL BANK
CONSTANT RETURNS TO SCALE
COUNTRY REGRESSIONS
DATA SOURCES
DEPENDENT VARIABLE
DEVELOPING COUNTRIES
DEVELOPING REGIONS
DIMINISHING RETURNS
DIRECT IMPACT
DISCOUNTED VALUE
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC SHOCKS
ECONOMISTS
ELASTICITY
ELASTICITY OF DEMAND
EQUILIBRIUM
EXCHANGE RATE
EXCHANGE RATES
EXERCISES
EXPLANATORY VARIABLES
EXTERNALITY
EXTREME POVERTY
FUNCTIONAL FORM
GDP PER CAPITA
GROWTH CONTEXT
GROWTH LITERATURE
GROWTH PROCESS
GROWTH RATE
GROWTH RATES
HEAD- COUNT RATIO
HEADCOUNT INDEX
HEADCOUNT POVERTY
HEADCOUNT RATIO
HIGH
HOUSEHOLD SURVEY
HUMAN DEVELOPMENT
HUMAN DEVELOPMENT REPORT
IMPORTS
INCOME
INCREASE POVERTY
INFLATION
INFLATION RATE
INFORMAL ECONOMY
INFORMAL SECTOR
INFORMAL SECTORS
INNOVATION
INTERNATIONAL POVERTY LINE
INTERNATIONAL POVERTY LINES
LABOR FORCE
LABOR MARKET
LIFE EXPECTANCY
LIVING STANDARDS
LONG RUN
LONG TERM
MACROECONOMIC CONDITIONS
MARGINAL COST
MARGINAL PRODUCT
MARKET ECONOMY
MICRO DATA
MINIMUM WAGE
MORTALITY
NATIONAL POVERTY
NATIONAL POVERTY LINE
0 HYPOTHESIS
OUTPUT GAP
OUTPUT GROWTH
OUTPUT PER CAPITA
PAYROLL TAXES
POLICY GOALS
POOR COUNTRIES
POSITIVE EXTERNALITIES
POVERTY
POVERTY ALLEVIATION
POVERTY GAP
POVERTY INDEX
POVERTY LEVELS
POVERTY LINE
POVERTY LINES
POVERTY RATE
POVERTY RATES
POVERTY REDUCTION
PRIMARY SCHOOL
PRODUCTION FUNCTION
PRODUCTION TECHNOLOGY
PRODUCTIVITY
PRODUCTIVITY GROWTH
REAL EXCHANGE RATE
REAL GDP
REAL INCOME
REAL WAGES
SAVING RATE
SAVINGS
SHORT TERM
SIGNIFICANT EFFECT
SIGNIFICANT IMPACT
SIMULATION TECHNIQUES
STANDARD DEVIATION
TECHNICAL ASSISTANCE
TRANSITION ECONOMIES
UNEMPLOYMENT
UNEMPLOYMENT RATE
UNEMPLOYMENT RATES
UNSKILLED LABOR
URBAN AREAS
URBAN HOUSEHOLDS
URBAN POOR
URBAN POVERTY
VULNERABLE GROUPS
WELFARE FUNCTION
WORKERS
WORKING POOR
YOUNG PEOPLE
YOUNG WORKERS
Agénor, Pierre-Richard
Unemployment-Poverty Trade-Offs
relation Policy Research Working Paper;No.3297
description The author examines the potential trade-offs that may arise between poverty alleviation and unemployment reduction. He discusses various analytical arguments that may provide a rationale for their existence, and uses three alternative methodologies to assess their relevance: a vector autoregression framework (which is applied to Brazil and Chile), cross-country regressions, and simulations with a structural macro model linked to a household survey. Impulse response functions to output and wage shocks indicate no short-run tradeoff. between unemployment and poverty. By contrast, regression results, which control for a variety of determinants of poverty rates across countries, suggest that such a trade-off may indeed exist. Simulations with the structural model show that labor market reforms may induce both short- and long-run trade-offs between the composition of unemployment and the incidence of poverty among household groups.
format Publications & Research :: Policy Research Working Paper
author Agénor, Pierre-Richard
author_facet Agénor, Pierre-Richard
author_sort Agénor, Pierre-Richard
title Unemployment-Poverty Trade-Offs
title_short Unemployment-Poverty Trade-Offs
title_full Unemployment-Poverty Trade-Offs
title_fullStr Unemployment-Poverty Trade-Offs
title_full_unstemmed Unemployment-Poverty Trade-Offs
title_sort unemployment-poverty trade-offs
publisher World Bank, Washington, D.C.
publishDate 2013
url http://documents.worldbank.org/curated/en/2004/05/4973104/unemployment-poverty-trade-offs
http://hdl.handle.net/10986/14028
_version_ 1764430380734087168