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What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?

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Author Info
Ravallion, Martin
Chen, Shaohua

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Abstract

It has been claimed that in recent times the poor have lost ground, both relatively and absolutely, even when average levels of living have risen. This article tests that claim using household surveys for 67 developing and transitional economies over 1981-94. It finds that changes in inequality and polarization were uncorrelated with changes in average living standards. Distribution improved as often as it worsened in growing economies, and negative growth was often more detrimental to distribution than positive growth. Overall, there was a small decrease in absolute poverty, although with diverse experiences across regions aced countries. Almost always, poverty fell with growth in average living standards and rose with contraction. Copyright 1997 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal World Bank Economic Review.

Volume (Year): 11 (1997)
Issue (Month): 2 (May)
Pages: 357-82
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Handle: RePEc:oup:wbecrv:v:11:y:1997:i:2:p:357-82

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Milanovic, Branko, 1995. "Poverty, inequality, and social policy in transition economies," Policy Research Working Paper Series 1530, The World Bank. [Downloadable!]
  2. Fields, Gary S, 1989. "Changes in Poverty and Inequality in Developing Countries," World Bank Research Observer, Oxford University Press, vol. 4(2), pages 167-85, July.
  3. Ravallion, Martin & Datt, Gaurav & van de Walle, Dominique, 1991. "Quantifying Absolute Poverty in the Developing World," Review of Income and Wealth, Blackwell Publishing, vol. 37(4), pages 345-61, December.
  4. Alesina, Alberto & Rodrik, Dani, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 465-90, May. [Downloadable!] (restricted)
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  5. Squire, Lyn, 1993. "Fighting Poverty," American Economic Review, American Economic Association, vol. 83(2), pages 377-82, May. [Downloadable!] (restricted)
  6. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June. [Downloadable!] (restricted)
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  7. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, Oxford University Press, vol. 10(3), pages 565-91, September.
  8. Clarke, George R. G., 1995. "More evidence on income distribution and growth," Journal of Development Economics, Elsevier, vol. 47(2), pages 403-427, August. [Downloadable!] (restricted)
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