The Impact of the Financial Crisis on Poverty and Income Distribution: Insights from Simulations in Selected Countries
AbstractAs the financial crisis has spread through the world, the lack of real-time data has made it difficult to track its impact in developing countries. We use a microsimulation approach to assess the poverty and distributional effects of the crisis. In Bangladesh, Mexico, and the Philippines, we find increases in both the level and the depth of aggregate poverty. Income shocks are relatively large in the middle (and, in Mexico, the bottom) parts of the income distribution. We also find that characteristics of people who become poor because of the crisis are different from those of both chronically poor people and the general population. Our findings will be useful for policy makers wishing to identify leading monitoring indicators to track the impact of macroeconomic shocks and to design policies that protect vulnerable groups.
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Bibliographic InfoArticle provided by The World Bank in its journal Economic Premise.
Volume (Year): (2010)
Issue (Month): 7 (March)
Financial crisis; poverty; income; income distribution; developing countries; Bangladesh; Mexico; Philippines; macroeconomic shocks; poor;
Other versions of this item:
- Bilal Habib & Ambar Narayan & Sergio Olivieri & Carolina Sanchez, 2010. "The Impact of the Financial Crisis on Poverty and Income Distribution : Insights from Simulations in Selected Countries," World Bank Other Operational Studies 10206, The World Bank.
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
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- François Bourguignon & Maurizio Bussolo & Luiz A. Pereira da Silva, 2008. "The Impact of Macroeconomic Policies on Poverty and Income Distribution : Macro-Micro Evaluation Techniques and Tools," World Bank Publications, The World Bank, number 6586, October.
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- Youssouf KIENDREBEOGO & Abdoulaye TALL & Kossi ASSIMAIDOU, 2013.
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- Kossi ASSIMAIDOU & Youssouf KIENDREBEOGO & Abdoulaye TALL, 2013. "Social Protection for Poverty Reduction in Times of Crisis," Working Papers halshs-00843010, HAL.
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