Links between Growth, Inequality, and Poverty : A Survey
Is there a trade-off between raising growth and reducing inequality and poverty? This paper reviews the theoretical and empirical literature on the complex links between growth, inequality, and poverty, with causation going in both directions. The...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/112911616770024923/Links-between-Growth-Inequality-and-Poverty-A-Survey http://hdl.handle.net/10986/35355 |
| Summary: | Is there a trade-off between raising
growth and reducing inequality and poverty? This paper
reviews the theoretical and empirical literature on the
complex links between growth, inequality, and poverty, with
causation going in both directions. The evidence suggests
that growth can be effective in reducing poverty, but its
impact on inequality is ambiguous and depends on the
underlying sources of growth. The impact of poverty and
inequality on growth is likewise ambiguous, as several
channels mediate the relationship. But most plausible
mechanisms suggest that poverty and inequality reduce
growth, at least in the long run. Policies play a role in
shaping these relationships and those designed to improve
equality of opportunity can simultaneously improve
inclusiveness and growth. |
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