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Linkages between Pro-Poor Growth, Social Programmes and Labour Market: The Recent Brazilian Experience

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Author Info

  • Nanak Kakwani

    ()
    (International Poverty Centre)

  • Marcelo Neri

    ()
    (FGV, Centre for Social Policies - IBRE and EPGE)

  • Hyun H. Son

    ()
    (International Poverty Centre)

Abstract

From a methodological point of view, this paper makes two contributions to the literature. One contribution is the proposal of a new measure of pro-poor growth. This new measure provides the linkage between growth rates in mean income and in income inequality. In this context, growth is defined as pro-poor (or anti-poor) if there is a gain (or loss) in the growth rate due to a decrease (or increase) in inequality. The other contribution is a decomposition methodology that explores linkages between three dimensions: growth patterns, labour market performances, and social policies. Through the decomposition analysis, growth in per capita income is explained in terms of four labour market components: the employment rate, hours of work, the labour force participation rate, and productivity. We also assess the contribution of different non-labour income sources to growth patterns. The proposed methodologies are then applied to the Brazilian National Household Survey (PNAD) covering the period 1995-2004. This paper analyzes the evolution of Brazilian social indicators based on per capita income, exploring links with adverse labour market performance and social policy change, with particular emphasis on the expansion of targeted cash transfers and on devising more pro-poor social security benefits.

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File URL: http://www.ipc-undp.org/pub/IPCWorkingPaper26.pdf
File Function: First version, 2006
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Bibliographic Info

Paper provided by International Policy Centre for Inclusive Growth in its series Working Papers with number 26.

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Length: 43
Date of creation: Aug 2006
Date of revision:
Publication status: Published by UNDP - International Poverty Centre, August 2006, pages 1-43
Handle: RePEc:ipc:wpaper:26

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Keywords: Inequality; Poverty; Growth; Pro-poor Growht; Labour Market; Social Policy; Brazil;

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References

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  1. Bourguignon, Francois & Ferreira, Francisco H. G. & Leite, Phillippe G., 2002. "Ex-ante evaluation of conditional cash transfer programs: the case of bolsa escola," Policy Research Working Paper Series 2916, The World Bank.
  2. Sen, Amartya, 1974. "Informational bases of alternative welfare approaches : Aggregation and income distribution," Journal of Public Economics, Elsevier, Elsevier, vol. 3(4), pages 387-403, November.
  3. Ravallion, Martin & Chen, Shaohua, 2003. "Measuring pro-poor growth," Economics Letters, Elsevier, Elsevier, vol. 78(1), pages 93-99, January.
  4. David Coady & Emmanuel Skoufias, 2004. "On the Targeting and Redistributive Efficiencies of Alternative Transfer Instruments," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 50(1), pages 11-27, 03.
  5. Kakwani, Nanak, 1981. "Welfare measures : An international comparison," Journal of Development Economics, Elsevier, Elsevier, vol. 8(1), pages 21-45, February.
  6. Michael Rothschild & Joseph E. Stiglitz, 1972. "Some Further Results on the Measurement of Inequality," Cowles Foundation Discussion Papers, Cowles Foundation for Research in Economics, Yale University 344, Cowles Foundation for Research in Economics, Yale University.
  7. Marcelo Neri & José Márcio Camargo, 1999. "Distributive effects of Brazilian structural reforms," Textos para discussão, Department of Economics PUC-Rio (Brazil) 406, Department of Economics PUC-Rio (Brazil).
  8. Klasen, Stephan, 1994. "Growth and Well-being: Introducing Distribution-Weighted Growth Rates to Reevaluate U.S. Post-war Economic Performance," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 40(3), pages 251-72, September.
  9. Nanak Kakwani & Hyun H. Son, 2008. "Poverty Equivalent Growth Rate," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 54(4), pages 643-655, December.
  10. Ferreira, Francisco H. G. & Lanjouw, Peter & Neri, Marcelo Cortes, 2002. "A Robust Poverty Profile for Brazil Using Multiple Data Sources," Economics Working Papers (Ensaios Economicos da EPGE) 444, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  11. Grosse, Melanie & Harttgen, Kenneth & Klasen, Stephan, 2008. "Measuring Pro-Poor Growth in Non-Income Dimensions," World Development, Elsevier, Elsevier, vol. 36(6), pages 1021-1047, June.
  12. Carola Gruen & Stephan Klasen, 2008. "Growth, inequality, and welfare: comparisons across space and time," Oxford Economic Papers, Oxford University Press, vol. 60(2), pages 212-236, April.
  13. Eliana Cardoso & Andre Urani & Andre Urani, 1995. "Inflation and Unemployment as Determinants of Inequality in Brazil: The 1980s," NBER Chapters, National Bureau of Economic Research, Inc, in: Reform, Recovery, and Growth: Latin America and the Middle East, pages 151-176 National Bureau of Economic Research, Inc.
  14. Skoufias, Emmanuel & Davis, Benjamin & de la Vega, Sergio, 2001. "Targeting the Poor in Mexico: An Evaluation of the Selection of Households into PROGRESA," World Development, Elsevier, Elsevier, vol. 29(10), pages 1769-1784, October.
  15. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, Elsevier, vol. 2(3), pages 244-263, September.
  16. Dasgupta, Partha & Sen, Amartya & Starrett, David, 1973. "Notes on the measurement of inequality," Journal of Economic Theory, Elsevier, Elsevier, vol. 6(2), pages 180-187, April.
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Citations

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Cited by:
  1. Md Ashiq Iqbal & Towfiqul Islam Khan & Tazeen Tahsina, 2008. "Macroeconomic Implications of Social Safety Nets in the Context of Bangladesh," CPD Working Paper, Centre for Policy Dialogue (CPD) 75, Centre for Policy Dialogue (CPD).
  2. Forbes, Kinisha, 2011. "Inequality in crisis and recovery : revealing the divides: the case of Brazil," ILO Working Papers, International Labour Organization 469849, International Labour Organization.
  3. Buchmann, Gabriel & Neri, Marcelo Cortes, 2008. "From Dakar to Brasilia: Monitoring Unesco´s Education Goals," Economics Working Papers (Ensaios Economicos da EPGE) 685, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  4. Catalina Gutierrez & Pierella Paci & Marco Ranzani, 2008. "Making Work Pay in Nicaragua : Employment, Growth, and Poverty Reduction," World Bank Publications, The World Bank, number 6472, August.
  5. Jean-Pierre Lachaud, 2007. "La dynamique de pauvreté provinciale et le marché du travail à Madagascar. Une analyse fondée sur une décomposition de régression," Documents de travail, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV 136, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
  6. Neri, Marcelo Cortes, 2008. "Equity and Efficiency in Education: motivations and targets," Economics Working Papers (Ensaios Economicos da EPGE) 684, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  7. Gutierrez, Catalina & Orecchia, Carlo & Paci, Pierella & Serneels, Pieter, 2007. "Does employment generation really matter for poverty reduction ?," Policy Research Working Paper Series 4432, The World Bank.
  8. Haagh, Louise, 2011. "Working Life, Well-Being and Welfare Reform: Motivation and Institutions Revisited," World Development, Elsevier, Elsevier, vol. 39(3), pages 450-473, March.
  9. Md Ashiq Iqbal, 2008. "Macroeconomic Implications of Social Safety Nets in the Context of Bangladesh," Macroeconomics Working Papers 22289, East Asian Bureau of Economic Research.
  10. Neri, Marcelo Cortes, 2007. "Poverty, Inequality and Income Policies: Lula's Real," Economics Working Papers (Ensaios Economicos da EPGE) 662, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  11. Fabio Veras Soares & Sergei Suarez Dillon Soares & Marcelo Medeiros & Rafael Guerreiro Osório, 2006. "Cash Transfer Programmes in Brazil: Impacts on Inequality and Poverty," Working Papers, International Policy Centre for Inclusive Growth 21, International Policy Centre for Inclusive Growth.

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