Understanding Changes in Poverty

Understanding Changes in Poverty brings together different methods to decompose the contributions to poverty reduction. A simple approach quantifies the contribution of changes in demographics, employment, earnings, public transfers, and remittance...

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Bibliographic Details
Main Authors:	Inchauste, Gabriela, Azevedo, João Pedro, Essama-Nssah, B., Olivieri, Sergio, Van Nguyen, Trang, Saavedra-Chanduvi, Jaime, Winkler, Hernan
Format:	Publication
Language:	English en_US
Published:	World Bank Group, Washington, DC 2014
Subjects:	AGGREGATE POVERTY AGRICULTURAL WORKERS AVERAGE INCOME AVERAGE WAGES CASH TRANSFERS CHANGES IN POVERTY CONSUMPTION AGGREGATE CONSUMPTION EXPENDITURE CONSUMPTION PER CAPITA CONSUMPTION POVERTY COUNTERFACTUAL CUMULATIVE DISTRIBUTION CUMULATIVE DISTRIBUTION FUNCTION DECLINE IN POVERTY DECOMPOSABLE POVERTY DECOMPOSABLE POVERTY MEASURES DECOMPOSITION METHODOLOGY DECOMPOSITION TECHNIQUES DENSITY FUNCTION DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DEVELOPMENT GOALS DEVELOPMENT REPORT DEVELOPMENT RESEARCH DISTRIBUTION OF LAND DISTRIBUTIONAL CHANGE DISTRIBUTIONAL CHANGES DISTRIBUTIONAL IMPACT ECONOMIC GROWTH ECONOMICS EMPIRICAL REGULARITIES ESTIMATED COEFFICIENTS EX ANTE ANALYSIS EXTREME POVERTY EXTREME POVERTY LINE FAMILY INCOME FAMILY MEMBERS FARM HOUSEHOLDS FARM INCOME FARM SECTOR FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL MARKETS FLEXIBILITY FOOD PRICES FUNCTIONAL FORM GLOBAL POVERTY GROWTH EFFECT GROWTH PATTERN GROWTH PROCESS GROWTH RATE HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD PER CAPITA INCOME HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN CAPITAL ENDOWMENTS IMPACT EVALUATION IMPROVING PRODUCTIVITY INCIDENCE ANALYSIS INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME DYNAMICS INCOME GROWTH INCOME INEQUALITY INCOME REDISTRIBUTION INCOME-GENERATING ACTIVITIES INEQUALITY CONSTANT INEQUALITY MEASURES INTERVENTION LABOR FORCE LABOR MARKET LIVING STANDARDS MACROECONOMIC SHOCKS MARGINAL EFFECT MEAN INCOME NATIONAL POVERTY NATIONAL POVERTY HEADCOUNT NUTRITION PER CAPITA CONSUMPTION POLICY MAKERS POLICY RESEARCH POLITICAL ECONOMY POOR POPULATION SHARE POVERTY CHANGE POVERTY CHANGES POVERTY DYNAMICS POVERTY GAP POVERTY GAP INDEX POVERTY HEADCOUNT RATES POVERTY IMPACT POVERTY IMPACTS POVERTY LEVEL POVERTY LEVELS POVERTY LINE POVERTY LINES POVERTY MEASURE POVERTY MEASUREMENT POVERTY MEASURES POVERTY OUTCOMES POVERTY RATE POVERTY RATES POVERTY REDUCTION POVERTY REDUCTION TARGETS POVERTY SEVERITY PRIVATE TRANSFERS PRO-POOR PRO-POOR GROWTH PROGRAM EVALUATION PUBLIC EXPENDITURE PUBLIC POLICY QUALITY OF PUBLIC SERVICES REDUCING POVERTY REDUCTION IN POVERTY REGIONAL COMPOSITION RELATIVE IMPORTANCE RELATIVE INEQUALITY RURAL INCOME SAFETY NET SAFETY NET PROGRAMS SAVINGS SECTORAL COMPOSITION SOCIAL POLICIES SOCIAL PROTECTION TRANSFER PROGRAMS UNDERSTANDING OF POVERTY WAGE DIFFERENTIALS WELFARE INDICATOR WELFARE MEASURE
Online Access:	http://documents.worldbank.org/curated/en/2014/01/20107647/understanding-changes-poverty http://hdl.handle.net/10986/19445

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Summary:	Understanding Changes in Poverty brings together different methods to decompose the contributions to poverty reduction. A simple approach quantifies the contribution of changes in demographics, employment, earnings, public transfers, and remittances to poverty reduction. A more complex approach quantifies the contributions to poverty reduction from changes in individual and household characteristics, including changes in the sectoral, occupational, and educational structure of the workforce, as well as changes in the returns to individual and household characteristics. Understanding Changes in Poverty implements these approaches and finds that labor income growth that is, growth in income per worker rather than an increase in the number of employed workers was the largest contributor to moderate poverty reduction in 21 countries experiencing substantial reductions in poverty over the past decade. Changes in demographics, public transfers, and remittances helped, but made relatively smaller contributions to poverty reduction. Further decompositions in three countries find that labor income grew mainly because of higher returns to human capital endowments, signaling increases in productivity, higher relative price of labor, or both. Understanding Changes in Poverty will be of particular relevance to development practitioners interested in better understanding distributional changes over time. The methods and tools presented in this book can also be applied to better understand changes in inequality or any other distributional change.

Understanding Changes in Poverty

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