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Measuring Pro-Poor Growth with Non-Income Indicators

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Author Info
Melanie Grosse () (Universität Göttingen)
Kenneth Harttgen () (Universität Göttingen)
Stephan Klasen () (Universität Göttingen)

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Abstract

In order to track progress on MDG1 and explicitly link growth, inequality, and poverty reduction, several measures of ’pro-poor growth’ have been proposed in the literature and used in applied academic and policy work. These measures, particularly the ones derived from the growth incidence curve, allow a much more detailed assessment of the distributional impact of growth and its link to poverty reduction. At the same time, this toolbox has been developed and to date only applied for tracking progress in reducing the income dimension of poverty. There are no corresponding measures for tracking progress on non-income dimensions of poverty, and thus progress on MDGs 2-6. In this paper, we propose to extend the approach of pro-poor growth measurement to non-income dimensions of poverty (particularly health and education). We show theoretically and illustrate with data from Bolivia empirically that it is possible to extend this pro-poor growth toolbox to non-income dimensions and show that it generates new insights. In particular, it allows a much more detailed assessment of progress towards MDGs 2-6 by focusing on the distribution of progress, rather than simply focusing on mean progress. Moreover, this extension allows the assessment of the linkage between progress in income and non-income dimensions of poverty which is an important extension to traditional incidence analysis and furthermore allows an explicit assessment of the linkage between progress in MDG1 and MDGs 2-6.

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Publisher Info
Paper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 132.

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Length: 40 pages
Date of creation: 18 Nov 2005
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Handle: RePEc:got:iaidps:132

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Related research
Keywords: Pro-Poor Growth; Multidimensionality of Poverty; Growth;

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Find related papers by JEL classification:
D30 - Microeconomics - - Distribution - - - General
I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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  1. 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. [Downloadable!]
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  2. Kenneth Hartgen & Stephan Klasen & Mark Misselhorn, 2009. "Pro-Poor Progress in Education in Developing Countries?," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 8, Courant Research Centre PEG. [Downloadable!]
  3. Stephan Klasen, 2006. "Economic Growth and Poverty Reduction: Measurement Issues using Income and Non-Income Indicators," Ibero America Institute for Econ. Research (IAI) Discussion Papers 142, Ibero-America Institute for Economic Research. [Downloadable!]
    Other versions:
  4. Stephan Klasen, 2006. "Pro-Poor Growth and Gender Inequality," Ibero America Institute for Econ. Research (IAI) Discussion Papers 151, Ibero-America Institute for Economic Research. [Downloadable!]
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