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Labour Markets As A Transmission Channel From Growth To Poverty Reduction: Evidence From Vietnam And Burkina Faso, 1993-2003

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  • Sabine Bernabè
  • Gorana Krstić

Abstract

Employment is widely perceived as being amongst the most important channels for translating growth into poverty reduction. This paper focuses on two countries, Burkina Faso and Vietnam , with very distinct patterns of growth and poverty reduction between 1993-2003. We use household survey data to examine how employment transmitted growth to the poor in these two countries and find that there are two important factors that maximize the effectiveness of this transmission channel: (1) an increase in labour productivity that is (a) broad based and (b) concentrated in sectors where the poor are disproportionately employed or to which they have access, and (2) strong (domestic and foreign) demand for the goods and services produced by the poor, and access to these markets.

Suggested Citation

  • Sabine Bernabè & Gorana Krstić, 2008. "Labour Markets As A Transmission Channel From Growth To Poverty Reduction: Evidence From Vietnam And Burkina Faso, 1993-2003," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 53(178-179), pages 72-121, July - De.
    • Handle: RePEc:beo:journl:v:53:y:2008:i:178-179:p:72-121
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    References listed on IDEAS

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    1. Squire, Lyn, 1993. "Fighting Poverty," American Economic Review, American Economic Association, vol. 83(2), pages 377-382, May.
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    More about this item

    Keywords

    labour markets; propoor growth; poverty reduction; informal economy;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets

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