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Feasible Utopia: Cutting Poverty Rate In Half Using Basic Income Grants In Regions And Cities Of Cote D´Ivoire

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  • AKA, François Bedia

Abstract

Despite the good economic environment and growth performance of African countries, their poverty and inequality rate still high. How to cut poverty rate in half in a short-term perspective is investigated here. A universal basic income grant (BIG) has been found as a tool to reach this objective and we simulate the distributional impact of a BIG in Cote d’Ivoire. How the BIG is financed is also investigated. We analyze the effects of a universal basic income grant on households. The simulations are performed using the Côte d’Ivoire’s 1998 household survey data composed of 4,200 households. The results suggest that the unconditional basic income grant appears as a powerful tool to reduce drastically the overall as well as disaggregated level of poverty incidence, depth and severity, and also inequality, and increase welfare.

Suggested Citation

  • AKA, François Bedia, 2016. "Feasible Utopia: Cutting Poverty Rate In Half Using Basic Income Grants In Regions And Cities Of Cote D´Ivoire," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 16(2), pages 87-104.
    • Handle: RePEc:eaa:eerese:v:16:y2016:i:2_7
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    References listed on IDEAS

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    1. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-764, July.
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    5. Ravallion, Martin & Bidani, Benu, 1994. "How Robust Is a Poverty Profile?," The World Bank Economic Review, World Bank, vol. 8(1), pages 75-102, January.
    6. Clark, Stephen & Hemming, Richard & Ulph, David, 1981. "On Indices for the Measurement of Poverty," Economic Journal, Royal Economic Society, vol. 91(362), pages 515-526, June.
    7. AKA, Bedia F. & GUISAN, Maria-Carmen, 2017. "Cutting Poverty Rate Using Basic Income Grant And International Cooperation In Cote D’Ivoire And Other Western Africa Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(1), pages 101-112.
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    Cited by:

    1. AKA, Bedia F. & GUISAN, Maria-Carmen, 2017. "Cutting Poverty Rate Using Basic Income Grant And International Cooperation In Cote D’Ivoire And Other Western Africa Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(1), pages 101-112.

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    More about this item

    Keywords

    Basic income grant; BIG; Fiscal policy; Poverty; Inequality; Welfare; Simulated; Cote d´Ivoire.;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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