Dynamics of Income Inequality and Welfare in Latvia in the Late 1990s

This paper analyzes the dynamics of poverty and income inequality during the recovery phase of the transition that characterized the Republic of Latvia in the late 1990s. Despite a continued rise in income inequality, empirical evidence suggests an...

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Main Authors: Fofack, Hippolyte, Monga, Celestin
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/2004/06/4843879/dynamics-income-inequality-welfare-latvia-late-1990s
http://hdl.handle.net/10986/14067
id okr-10986-14067
recordtype oai_dc
spelling okr-10986-140672021-04-23T14:03:20Z Dynamics of Income Inequality and Welfare in Latvia in the Late 1990s Fofack, Hippolyte Monga, Celestin ABSOLUTE POVERTY ABSOLUTE POVERTY LINE AGGREGATE GROWTH AGGREGATE INCOME ASSETS INEQUALITY AVERAGE INCOME CONSUMER PRICE INDEX DEVELOPING COUNTRIES DISPOSABLE INCOME DISTRIBUTIONAL CHANGES DIVIDENDS ECONOMIC DOWNTURNS ECONOMIC GROWTH ECONOMIES OF SCALE ELASTICITY EMPIRICAL EVIDENCE EXPENDITURES GINI COEFFICIENT GRADUAL INCREASE GROWTH PROCESS GROWTH PROSPECTS GROWTH RATES HIGH INCOME INEQUALITY HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD SIZE INCOME INCOME DATA INCOME DIFFERENTIALS INCOME DISPARITIES INCOME DISTRIBUTION INCOME ELASTICITY INCOME GROUPS INCOME INEQUALITY INCOME SHARE INCOME SOURCES INEQUALITY MEASURES INFLATION LABOR MARKET LOW INCOME MACROECONOMIC STABILITY MEAN CONSUMPTION MEAN LOG DEVIATION MEDIAN INCOME NEGATIVE GROWTH NEGATIVE VALUE PER CAPITA INCOME POLICY IMPLICATIONS POLICY RESEARCH POOR POOR HOUSEHOLDS POVERTY ALLEVIATION POVERTY ANALYSIS POVERTY GAP POVERTY IMPACT POVERTY INCIDENCE POVERTY LINE POVERTY LINES POVERTY RATE POVERTY REDUCTION PRIVATE SECTOR PUBLIC SPENDING PUBLIC TRANSFERS RAPID INCREASE REGIONAL LEVEL REGIONAL LEVELS RISING INCOME INEQUALITY RISING INEQUALITY RURAL POVERTY SAVINGS SENSITIVITY ANALYSIS SIGNIFICANT DIFFERENCES SIGNIFICANT IMPACT SOCIAL SECURITY STRUCTURAL REFORMS SUSTAINABLE GROWTH TARGETING TRANSITION ECONOMIES UNEMPLOYMENT UNEMPLOYMENT RATES WAGES WELFARE EFFECTS INCOME INEQUALITY POVERTY REDUCTION POVERTY INCIDENCE URBAN EMPLOYMENT RURAL EMPLOYMENT WELFARE POVERTY ASSESSMENT URBAN POVERTY HOUSEHOLDS RURAL AREAS EMPLOYMENT CREATION LIVING STANDARDS ECONOMIC GROWTH INCOME HOUSEHOLD EXPENDITURES UNEMPLOYMENT POVERTY HOUSING This paper analyzes the dynamics of poverty and income inequality during the recovery phase of the transition that characterized the Republic of Latvia in the late 1990s. Despite a continued rise in income inequality, empirical evidence suggests an improvement in living standards, owing largely to a significant surge in per capita income growth, particularly in urban areas. In a context of rising income inequality and widening urban-rural income and poverty gaps, the benefits of growth were not equally distributed, and poverty persisted in a number of regions (particularly the regions of Latgale and Vitzeme) and among some socioeconomic groups (particularly households deriving their main income from social benefits). In addition to income inequality and asset endowments, poverty appears to be highly correlated with a number of labor market-related variables, particularly unemployment, suggesting that the labor market could be an important transmission channel from growth to poverty. However, though positive, the association between poverty and unemployment is non linear, especially in urban areas, where the labor market and demand are the most important channels of transmission through which growth and macroeconomic development affect household income and living standards. 2013-06-20T17:57:56Z 2013-06-20T17:57:56Z 2004-06 http://documents.worldbank.org/curated/en/2004/06/4843879/dynamics-income-inequality-welfare-latvia-late-1990s http://hdl.handle.net/10986/14067 English en_US Policy Research Working Paper;No.3336 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 Europe and Central Asia Latvia
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 ABSOLUTE POVERTY
ABSOLUTE POVERTY LINE
AGGREGATE GROWTH
AGGREGATE INCOME
ASSETS INEQUALITY
AVERAGE INCOME
CONSUMER PRICE INDEX
DEVELOPING COUNTRIES
DISPOSABLE INCOME
DISTRIBUTIONAL CHANGES
DIVIDENDS
ECONOMIC DOWNTURNS
ECONOMIC GROWTH
ECONOMIES OF SCALE
ELASTICITY
EMPIRICAL EVIDENCE
EXPENDITURES
GINI COEFFICIENT
GRADUAL INCREASE
GROWTH PROCESS
GROWTH PROSPECTS
GROWTH RATES
HIGH INCOME INEQUALITY
HOUSEHOLD CONSUMPTION
HOUSEHOLD INCOME
HOUSEHOLD SIZE
INCOME
INCOME DATA
INCOME DIFFERENTIALS
INCOME DISPARITIES
INCOME DISTRIBUTION
INCOME ELASTICITY
INCOME GROUPS
INCOME INEQUALITY
INCOME SHARE
INCOME SOURCES
INEQUALITY MEASURES
INFLATION
LABOR MARKET
LOW INCOME
MACROECONOMIC STABILITY
MEAN CONSUMPTION
MEAN LOG DEVIATION
MEDIAN INCOME
NEGATIVE GROWTH
NEGATIVE VALUE
PER CAPITA INCOME
POLICY IMPLICATIONS
POLICY RESEARCH
POOR
POOR HOUSEHOLDS
POVERTY ALLEVIATION
POVERTY ANALYSIS
POVERTY GAP
POVERTY IMPACT
POVERTY INCIDENCE
POVERTY LINE
POVERTY LINES
POVERTY RATE
POVERTY REDUCTION
PRIVATE SECTOR
PUBLIC SPENDING
PUBLIC TRANSFERS
RAPID INCREASE
REGIONAL LEVEL
REGIONAL LEVELS
RISING INCOME INEQUALITY
RISING INEQUALITY
RURAL POVERTY
SAVINGS
SENSITIVITY ANALYSIS
SIGNIFICANT DIFFERENCES
SIGNIFICANT IMPACT
SOCIAL SECURITY
STRUCTURAL REFORMS
SUSTAINABLE GROWTH
TARGETING
TRANSITION ECONOMIES
UNEMPLOYMENT
UNEMPLOYMENT RATES
WAGES
WELFARE EFFECTS INCOME INEQUALITY
POVERTY REDUCTION
POVERTY INCIDENCE
URBAN EMPLOYMENT
RURAL EMPLOYMENT
WELFARE
POVERTY ASSESSMENT
URBAN POVERTY
HOUSEHOLDS
RURAL AREAS
EMPLOYMENT CREATION
LIVING STANDARDS
ECONOMIC GROWTH
INCOME
HOUSEHOLD EXPENDITURES
UNEMPLOYMENT
POVERTY
HOUSING
spellingShingle ABSOLUTE POVERTY
ABSOLUTE POVERTY LINE
AGGREGATE GROWTH
AGGREGATE INCOME
ASSETS INEQUALITY
AVERAGE INCOME
CONSUMER PRICE INDEX
DEVELOPING COUNTRIES
DISPOSABLE INCOME
DISTRIBUTIONAL CHANGES
DIVIDENDS
ECONOMIC DOWNTURNS
ECONOMIC GROWTH
ECONOMIES OF SCALE
ELASTICITY
EMPIRICAL EVIDENCE
EXPENDITURES
GINI COEFFICIENT
GRADUAL INCREASE
GROWTH PROCESS
GROWTH PROSPECTS
GROWTH RATES
HIGH INCOME INEQUALITY
HOUSEHOLD CONSUMPTION
HOUSEHOLD INCOME
HOUSEHOLD SIZE
INCOME
INCOME DATA
INCOME DIFFERENTIALS
INCOME DISPARITIES
INCOME DISTRIBUTION
INCOME ELASTICITY
INCOME GROUPS
INCOME INEQUALITY
INCOME SHARE
INCOME SOURCES
INEQUALITY MEASURES
INFLATION
LABOR MARKET
LOW INCOME
MACROECONOMIC STABILITY
MEAN CONSUMPTION
MEAN LOG DEVIATION
MEDIAN INCOME
NEGATIVE GROWTH
NEGATIVE VALUE
PER CAPITA INCOME
POLICY IMPLICATIONS
POLICY RESEARCH
POOR
POOR HOUSEHOLDS
POVERTY ALLEVIATION
POVERTY ANALYSIS
POVERTY GAP
POVERTY IMPACT
POVERTY INCIDENCE
POVERTY LINE
POVERTY LINES
POVERTY RATE
POVERTY REDUCTION
PRIVATE SECTOR
PUBLIC SPENDING
PUBLIC TRANSFERS
RAPID INCREASE
REGIONAL LEVEL
REGIONAL LEVELS
RISING INCOME INEQUALITY
RISING INEQUALITY
RURAL POVERTY
SAVINGS
SENSITIVITY ANALYSIS
SIGNIFICANT DIFFERENCES
SIGNIFICANT IMPACT
SOCIAL SECURITY
STRUCTURAL REFORMS
SUSTAINABLE GROWTH
TARGETING
TRANSITION ECONOMIES
UNEMPLOYMENT
UNEMPLOYMENT RATES
WAGES
WELFARE EFFECTS INCOME INEQUALITY
POVERTY REDUCTION
POVERTY INCIDENCE
URBAN EMPLOYMENT
RURAL EMPLOYMENT
WELFARE
POVERTY ASSESSMENT
URBAN POVERTY
HOUSEHOLDS
RURAL AREAS
EMPLOYMENT CREATION
LIVING STANDARDS
ECONOMIC GROWTH
INCOME
HOUSEHOLD EXPENDITURES
UNEMPLOYMENT
POVERTY
HOUSING
Fofack, Hippolyte
Monga, Celestin
Dynamics of Income Inequality and Welfare in Latvia in the Late 1990s
geographic_facet Europe and Central Asia
Latvia
relation Policy Research Working Paper;No.3336
description This paper analyzes the dynamics of poverty and income inequality during the recovery phase of the transition that characterized the Republic of Latvia in the late 1990s. Despite a continued rise in income inequality, empirical evidence suggests an improvement in living standards, owing largely to a significant surge in per capita income growth, particularly in urban areas. In a context of rising income inequality and widening urban-rural income and poverty gaps, the benefits of growth were not equally distributed, and poverty persisted in a number of regions (particularly the regions of Latgale and Vitzeme) and among some socioeconomic groups (particularly households deriving their main income from social benefits). In addition to income inequality and asset endowments, poverty appears to be highly correlated with a number of labor market-related variables, particularly unemployment, suggesting that the labor market could be an important transmission channel from growth to poverty. However, though positive, the association between poverty and unemployment is non linear, especially in urban areas, where the labor market and demand are the most important channels of transmission through which growth and macroeconomic development affect household income and living standards.
format Publications & Research :: Policy Research Working Paper
author Fofack, Hippolyte
Monga, Celestin
author_facet Fofack, Hippolyte
Monga, Celestin
author_sort Fofack, Hippolyte
title Dynamics of Income Inequality and Welfare in Latvia in the Late 1990s
title_short Dynamics of Income Inequality and Welfare in Latvia in the Late 1990s
title_full Dynamics of Income Inequality and Welfare in Latvia in the Late 1990s
title_fullStr Dynamics of Income Inequality and Welfare in Latvia in the Late 1990s
title_full_unstemmed Dynamics of Income Inequality and Welfare in Latvia in the Late 1990s
title_sort dynamics of income inequality and welfare in latvia in the late 1990s
publisher World Bank, Washington, D.C.
publishDate 2013
url http://documents.worldbank.org/curated/en/2004/06/4843879/dynamics-income-inequality-welfare-latvia-late-1990s
http://hdl.handle.net/10986/14067
_version_ 1764430439947173888