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Was Economic Growth in Australia Good for the Income-Poor? and for the Multidimensionally-Poor?

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  • Francisco Azpitarte

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    (Melbourne Institute of Applied Economic and Social Research, University of Melbourne, Victoria 3010, Australia)

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    Abstract

    We investigate the pro-poorness of Australia’s strong economic growth in the fi rst decade of the XXI century using anonymous and non-anonymous approaches to the measurement of pro-poor growth. The sensitivity of pro-poor growth evaluations to the de nition of poverty is evaluated by comparing the results for the standard income-poverty measure with those based on a multidimensional de nition of poverty. We nd that Australian growth in this period can be only categorized as pro-poor according to the weakest concept of pro-poorness that does not require any bias of growth towards the poor. In addition, our results indicate that growth was clearly more pro-income poor than pro-multidimensionally poor. Counterfactual distribution analysis reveals that di¤erences in the distribution of health between these two groups is the non-income factor that most contributes to explain this result.

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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2012-278.pdf
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    Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 278.

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    Length: 35 pages
    Date of creation: Nov 2012
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    Handle: RePEc:inq:inqwps:ecineq2012-278

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    Keywords: Growth; pro-poor; anonymity axiom.;

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    1. Michael Grimm, 2007. "Removing the anonymity axiom in assessing pro-poor growth," Journal of Economic Inequality, Springer, vol. 5(2), pages 179-197, August.
    2. Buhmann, Brigitte, et al, 1988. "Equivalence Scales, Well-Being, Inequality, and Poverty: Sensitivity Estimates across Ten Countries Using the Luxembourg Income Study (LIS) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-42, June.
    3. Rosanna Scutella & Roger Wilkins & Weiping Kostenko, 2009. "Estimates of Poverty and Social Exclusion in Australia: A Multidimensional Approach," Melbourne Institute Working Paper Series wp2009n26, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    4. 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.
    5. Rosanna Scutella & Roger Wilkins & Michael Horn, 2009. "Measuring Poverty and Social Exclusion in Australia: A Proposed Multidimensional Framework for Identifying Socio-Economic Disadvantage," Melbourne Institute Working Paper Series wp2009n04, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    6. Peter Saunders & Bruce Bradbury, 2006. "Monitoring Trends in Poverty and Income Distribution: Data, Methodology and Measurement," The Economic Record, The Economic Society of Australia, vol. 82(258), pages 341-364, 09.
    7. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-44, September.
    8. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
    9. Roger Wilkins, 2007. "The Changing Socio-Demographic Composition of Poverty in Australia: 1982 to 2004," Melbourne Institute Working Paper Series wp2007n12, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    10. 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.
    11. Peter Saunders & Trish Hill, 2008. "A Consistent Poverty Approach to Assessing the Sensitivity of Income Poverty Measures and Trends," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 41(4), pages 371-388, December.
    12. Mark Wooden & Nicole Watson, 2007. "The HILDA Survey and its Contribution to Economic and Social Research (So Far)," The Economic Record, The Economic Society of Australia, vol. 83(261), pages 208-231, 06.
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