Advanced Search
MyIDEAS: Login

The pro-poorness, growth and inequality nexus: Some findings from a simulation study

Contents:

Author Info

  • Thomas Groll

    (University of Oregon)

  • Peter J. Lambert

    (University of Oregon)

Abstract

A widely accepted criterion for pro-poorness of an income growth pattern is that it should reduce a (chosen) measure of poverty by more than if all incomes were growing equiproportionately. Inequality reduction is not generally seen as either necessary or sufficient for pro-poorness. As shown in Lambert (2010), in order to conduct nuanced investigation of the pro-poorness, growth and inequality nexus, one needs at least a 3-parameter model of the income distribution. In this paper, we explore in detail the properties of inequality reduction and pro-poorness, using the Watts poverty index and Gini inequality index, when income growth takes place within each of the following models: the displaced lognormal, Singh-Maddala and Dagum distributions. We show by simulation, using empirically relevant parameter estimates, that distributional change preserving the form of each of these income distributions is, in the main, either pro-poor and inequality reducing, or pro-rich and inequality exacerbating. Instances of pro-rich and inequality reducing change do occur, but we find no evidence that distributional change could be both pro-poor and inequality exacerbating.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ecineq.org/milano/WP/ECINEQ2011-214.pdf
Download Restriction: no

Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 214.

as in new window
Length: 20 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2011-214

Contact details of provider:
Email:
Web page: http://www.ecineq.org
More information through EDIRC

Related research

Keywords: poverty; growth; pro-poorness; income distribution.;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Jenkins, Stephen P. & Van Kerm, Philippe, 2011. "Trends in Individual Income Growth: Measurement Methods and British Evidence," IZA Discussion Papers 5510, Institute for the Study of Labor (IZA).
  2. Ravallion, Martin & Chen, Shaohua, 2003. "Measuring pro-poor growth," Economics Letters, Elsevier, vol. 78(1), pages 93-99, January.
  3. B. Essama-Nssah & Peter J. Lambert, 2009. "Measuring Pro-Poorness: A Unifying Approach With New Results," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 752-778, 09.
  4. Stephen P. Jenkins & Philippe Van Kerm, 2006. "Trends in income inequality, pro-poor income growth, and income mobility," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 531-548, July.
  5. Kalwij, Adriaan & Verschoor, Arjan, 2005. "A Decomposition of Poverty Trends across Regions: The Role of Variation in the Income and Inequality Elasticities of Poverty," Working Paper Series RP2005/36, World Institute for Development Economic Research (UNU-WIDER).
  6. Kalwij, Adriaan & Verschoor, Arjan, 2007. "Not by growth alone: The role of the distribution of income in regional diversity in poverty reduction," European Economic Review, Elsevier, vol. 51(4), pages 805-829, May.
  7. McDonald, James B, 1984. "Some Generalized Functions for the Size Distribution of Income," Econometrica, Econometric Society, vol. 52(3), pages 647-63, May.
  8. Theo S Eicher & Cecilia Garcia Penalosa, . "Inequality and Growth," Working Papers 0083, University of Washington, Department of Economics.
  9. Wilfling, Bernd & Kramer, Walter, 1993. "The Lorenz-ordering of Singh-Maddala income distributions," Economics Letters, Elsevier, vol. 43(1), pages 53-57.
  10. Florent Bresson, 2009. "On The Estimation Of Growth And Inequality Elasticities Of Poverty With Grouped Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(2), pages 266-302, 06.
  11. Kleiber, Christian, 1996. "Dagum vs. Singh-Maddala income distributions," Economics Letters, Elsevier, vol. 53(3), pages 265-268, December.
  12. Florent Bresson, 2010. "A general class of inequality elasticities of poverty," Journal of Economic Inequality, Springer, vol. 8(1), pages 71-100, March.
  13. Michael Grimm, 2007. "Removing the anonymity axiom in assessing pro-poor growth," Journal of Economic Inequality, Springer, vol. 5(2), pages 179-197, August.
  14. McDonald, James B & Mantrala, Anand, 1995. "The Distribution of Personal Income: Revisited," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(2), pages 201-04, April-Jun.
  15. François Bourguignon, 2002. "The growth elasticity of poverty reduction : explaining heterogeneity across countries and time periods," DELTA Working Papers 2002-03, DELTA (Ecole normale supérieure).
  16. Alexeev, Michael V & Gaddy, Clifford G, 1993. "Income Distribution in the U.S.S.R. in the 1980s," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(1), pages 23-36, March.
  17. Anne Epaulard, 2003. "Macroeconomic Performance and Poverty Reduction," IMF Working Papers 03/72, International Monetary Fund.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:inq:inqwps:ecineq2011-214. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maria Ana Lugo).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.