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Pro-Poor Growth Using Non-Income Indicators: An Empirical Illustration for Colombia

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  • Adriana Cardozo

    (University of Göttingen)

  • Melanie Grosse

    (University of Göttingen)

Abstract

In this paper, we analyze how the distribution of selected non-income welfare indicators changed between 1997 and 2003 in Colombia. We use multidimensional propoor growth measurement techniques and create indices for assets, health, education, and subjective welfare using two alternative weighing techniques: polychoric principal components and normatively selected weights. Results show that while income and expenditures fluctuated according to economic growth, reflecting the effects of the 1999 economic crisis, non-income indicators had minor changes. While income and expenditures decreased for all income percentiles, and relatively more for the richest, the non-income dimensions stagnated and remained in 2003 as unequally distributed as in 1997.

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Bibliographic Info

Paper provided by Courant Research Centre PEG in its series Courant Research Centre: Poverty, Equity and Growth - Discussion Papers with number 9.

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Date of creation: 15 Jul 2009
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Handle: RePEc:got:gotcrc:009

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Keywords: Pro-Poor Growth; Inequality; Welfare Measurement; Multidimensionality of Poverty; Latin America; Colombia;

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  1. Grosse, Melanie & Harttgen, Kenneth & Klasen, Stephan, 2008. "Measuring Pro-Poor Growth in Non-Income Dimensions," World Development, Elsevier, vol. 36(6), pages 1021-1047, June.
  2. Michael Grimm & Kenneth Harttgen & Stephan Klasen & Mark Misselhorn, 2007. "A Human Development Index by Income Groups," Ibero America Institute for Econ. Research (IAI) Discussion Papers 155, Ibero-America Institute for Economic Research.
  3. David E. Sahn & David Stifel, 2003. "Exploring Alternative Measures of Welfare in the Absence of Expenditure Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(4), pages 463-489, December.
  4. Gunther, Isabel & Grimm, Michael, 2007. "Measuring pro-poor growth when relative prices shift," Journal of Development Economics, Elsevier, vol. 82(1), pages 245-256, January.
  5. Kenny, Charles, 2005. "Why Are We Worried About Income? Nearly Everything that Matters is Converging," World Development, Elsevier, vol. 33(1), pages 1-19, January.
  6. Filmer, Deon & Pritchett, Lant, 1998. "Estimating wealth effects without expenditure data - or tears : with an application to educational enrollments in states of India," Policy Research Working Paper Series 1994, The World Bank.
  7. Booysen, Frikkie & van der Berg, Servaas & Burger, Ronelle & Maltitz, Michael von & Rand, Gideon du, 2008. "Using an Asset Index to Assess Trends in Poverty in Seven Sub-Saharan African Countries," World Development, Elsevier, vol. 36(6), pages 1113-1130, June.
  8. Klasen, Stephan, 2008. "Economic Growth and Poverty Reduction: Measurement Issues using Income and Non-Income Indicators," World Development, Elsevier, vol. 36(3), pages 420-445, March.
  9. Melanie Grosse & Kenneth Harttgen & Stephan Klasen, 2006. "Measuring Pro-Poor Progress towards the Non-Income Millennium Development Goals," Ibero America Institute for Econ. Research (IAI) Discussion Papers 144, Ibero-America Institute for Economic Research.
  10. World Bank, 2003. "Tertiary Education in Colombia : Paving the Way for Reform," World Bank Publications, The World Bank, number 15135, October.
  11. Sahn, David E. & Stifel, David C., 2000. "Poverty Comparisons Over Time and Across Countries in Africa," World Development, Elsevier, vol. 28(12), pages 2123-2155, December.
  12. Stanislav Kolenikov & Gustavo Angeles, 2009. "Socioeconomic Status Measurement With Discrete Proxy Variables: Is Principal Component Analysis A Reliable Answer?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(1), pages 128-165, 03.
  13. Melanie Grosse & Stephan Klasen & Julius Spatz, 2009. "Matching Household Surveys with DHS Data to Create Nationally Representative Time Series of Poverty: An Application to Bolivia," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 21, Courant Research Centre PEG.
  14. Ram, Rati, 1982. "Composite indices of physical quality of life, basic needs fulfilment, and income : A principal component representation," Journal of Development Economics, Elsevier, vol. 11(2), pages 227-247, October.
  15. Neumayer, Eric, 2003. "Beyond income: convergence in living standards, big time," Structural Change and Economic Dynamics, Elsevier, vol. 14(3), pages 275-296, September.
  16. Ravallion, Martin, 2004. "Pro-poor growth : A primer," Policy Research Working Paper Series 3242, The World Bank.
  17. David Clark, 2005. "Sen's capability approach and the many spaces of human well-being," Journal of Development Studies, Taylor & Francis Journals, vol. 41(8), pages 1339-1368.
  18. Juan Carlos Feres & Xavier Mancero, 2001. "El método de las necesidades básicas insatisfechas (NBI) y sus aplicaciones en América Latina," DOCUMENTOS DE INVESTIGACION 002525, CEPAL NACIONES UNIDAS.
  19. Alejandro Gaviria & Carlos Medina & Carolina Mejia, 2006. "Assessing Health Reform in Colombia: From Theory to Practice," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
  20. Klasen, Stephan & Günther, Isabel, 2007. "Measuring Chronic Non-Income Poverty," Proceedings of the German Development Economics Conference, Göttingen 2007 10, Verein für Socialpolitik, Research Committee Development Economics.
  21. Klasen, Stephan, 2000. "Measuring Poverty and Deprivation in South Africa," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(1), pages 33-58, March.
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Cited by:
  1. Melanie Grosse & Stephan Klasen & Julius Spatz, 2009. "Matching Household Surveys with DHS Data to Create Nationally Representative Time Series of Poverty: An Application to Bolivia," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 21, Courant Research Centre PEG.

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