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Policy Options for Poverty Alleviation

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Author Info
Miguel Székely
Abstract

This work builds on previous research to develop a methodology that simplifies the identification of the best policy options for poverty alleviation in a given country. When a population can be divided into subgroups according to an easily identifiable characteristic, the problem of alleviating poverty through a targeted mechanism can be viewed as one of choosing of three options: (i) provoking a marginal change in the average income of certain subgroups; (ii) changing the resource distribution within marginal subgroups; and (iii) generating a marginal change in the differences between the subgroups. Recent data from Mexico is applied.

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Paper provided by Inter-American Development Bank, Research Department in its series RES Working Papers with number 4062.

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Date of creation: Mar 1997
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Handle: RePEc:idb:wpaper:4062

Note: This paper is published as Chapter 6 in Székely, M. "The Economics of Poverty, Inequality and Wealth Accumulation in Mexico", MacMillan, London, 1998.
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  1. Foster, James E & Shorrocks, Anthony F, 1991. "Subgroup Consistent Poverty Indices," Econometrica, Econometric Society, vol. 59(3), pages 687-709, May. [Downloadable!] (restricted)
  2. Freeman, Richard B, 1996. "The Minimum Wage as a Redistributive Tool," Economic Journal, Royal Economic Society, vol. 106(436), pages 639-49, May. [Downloadable!] (restricted)
  3. Bourguignon, Francois, 1991. "Optimal Poverty Reduction, Adjustment, and Growth," World Bank Economic Review, Oxford University Press, vol. 5(2), pages 315-38, May.
  4. Besley, Timothy J & Kanbur, S M Ravi, 1988. "Food Subsidies and Poverty Alleviation," Economic Journal, Royal Economic Society, vol. 98(392), pages 701-19, September. [Downloadable!] (restricted)
  5. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-20, July. [Downloadable!] (restricted)
  6. Sastry, D V S & Kelkar, Ujwala R, 1994. "Note on the Decomposition of Gini Inequality," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 584-86, August. [Downloadable!] (restricted)
  7. Keen, Michael, 1992. "Needs and Targeting," Economic Journal, Royal Economic Society, vol. 102(410), pages 67-79, January. [Downloadable!] (restricted)
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  8. 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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  9. Lipton, Michael & Ravallion, Martin, 1995. "Poverty and policy," Handbook of Development Economics, in: Hollis Chenery† & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 41, pages 2551-2657 Elsevier. [Downloadable!] (restricted)
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  10. Thorbecke, Erik & Jung, Hong-Sang, 1996. "A multiplier decomposition method to analyze poverty alleviation," Journal of Development Economics, Elsevier, vol. 48(2), pages 279-300, March. [Downloadable!] (restricted)
  11. Besley, Timothy & Coate, Stephen, 1991. "Public Provision of Private Goods and the Redistribution of Income," American Economic Review, American Economic Association, vol. 81(4), pages 979-84, September. [Downloadable!] (restricted)
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  12. Ravallion, Martin & Chao, Kalvin, 1989. "Targeted policies for poverty alleviation under imperfect information: Algorithms and applications," Journal of Policy Modeling, Elsevier, vol. 11(2), pages 213-224. [Downloadable!] (restricted)
  13. Silber, Jacques, 1989. "Factor Components, Population Subgroups and the Computation of the Gini Index of Inequality," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 107-15, February. [Downloadable!] (restricted)
  14. Ravallion, Martin & Sen, Binayak, 1994. "Impacts on rural poverty of land-based targeting: Further results for Bangladesh," World Development, Elsevier, vol. 22(6), pages 823-838, June. [Downloadable!] (restricted)
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  17. Kanbur, Ravi & Keen, Michael & Tuomala, Matti, 1994. "Labor Supply and Targeting in Poverty Alleviation Programs," World Bank Economic Review, Oxford University Press, vol. 8(2), pages 191-211, May.
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  20. Thorbecke, Erik & Berrian, David, 1992. "Budgetary rules to minimize societal poverty in a general equilibrium context," Journal of Development Economics, Elsevier, vol. 39(2), pages 189-205, October. [Downloadable!] (restricted)
  21. Gottschalk, Peter & Danziger, Sheldon, 1985. "A Framework for Evaluating the Effects of Economic Growth and Transfers on Poverty," American Economic Review, American Economic Association, vol. 75(1), pages 153-61, March. [Downloadable!] (restricted)
  22. Baker, Judy L. & Grosh, Margaret E., 1994. "Poverty reduction through geographic targeting: How well does it work?," World Development, Elsevier, vol. 22(7), pages 983-995, July. [Downloadable!] (restricted)
  23. John T. Addison & McKinley L. Blackburn, 1999. "Minimum wages and poverty," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 52(3), pages 393-409, April.
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  24. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
  25. Machin, Stephen & Manning, Alan, 1996. "Employment and the Introduction of a Minimum Wage in Britain," Economic Journal, Royal Economic Society, vol. 106(436), pages 667-76, May. [Downloadable!] (restricted)
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