Growth and Income Redistribution Components of Changes in Poverty: A Decomposition Analysis for Ireland, 1987-2005
AbstractThis study analysed the contribution of economic growth and redistribution components to aggregate poverty changes in Ireland from 1987-2005, using the Shapley value decomposition approach. The analysis used the household disposable income data from the Household Budget Survey to calculate poverty indices. The result of the Shapley value decomposition of poverty changes into growth and redistribution components revealed that the growth component dominates the redistribution component in bringing about the decline in poverty. This suggests that the drastic fall in absolute poverty over the survey period could be attributed to the increase in the household mean income rather than the redistributive policies of government transfer and income tax systems. We also investigated the extent to which economic growth experienced over the survey period has been pro- poor, by using the Growth Incidence Curve proposed by Ravallion and Chen (2003). It was found that economic growth was slightly pro-poor between 1987 and 1994 and generally anti-poor between 1994 and 1999.
Download InfoIf 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.
Bibliographic InfoPaper provided by School Of Economics, University College Dublin in its series Working Papers with number 201231.
Length: 36 pages
Date of creation: 20 Dec 2012
Date of revision:
economic growth; inequality; poverty decomposition; shapley value;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
- P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-07 (All new papers)
- NEP-FDG-2013-01-07 (Financial Development & Growth)
- NEP-LTV-2013-01-07 (Unemployment, Inequality & Poverty)
- NEP-PBE-2013-01-07 (Public Economics)
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.:
- Barrett, Alan & FitzGerald, John & Nolan, Brian, 2000.
"Earnings Inequality, Returns to Education and Immigration into Ireland,"
IZA Discussion Papers
167, Institute for the Study of Labor (IZA).
- Barrett, Alan & FitzGerald, John & Nolan, Brian, 2002. "Earnings inequality, returns to education and immigration into Ireland," Labour Economics, Elsevier, vol. 9(5), pages 665-680, November.
- Barrett, Alan & Fitz Gerald, John & Nolan, Brian, 2000. "Earnings Inequality, Returns to Education and Immigration into Ireland," CEPR Discussion Papers 2493, C.E.P.R. Discussion Papers.
- Brendan Walsh, 2004. "The Transformation of the Irish Labour Market - 1980-2003," Working Papers 200412, School Of Economics, University College Dublin.
- David Madden, 2008.
"Health and Income Poverty in Ireland, 2003-2006,"
200815, School Of Economics, University College Dublin.
- Madden, D, 2008. "Health and Income Poverty in Ireland, 2003-2006," Health, Econometrics and Data Group (HEDG) Working Papers 08/14, HEDG, c/o Department of Economics, University of York.
- Whelan, Christopher T. & Layte, Richard & Maitre, Bertrand & Gannon, Brenda & Nolan, Brian & Watson, Dorothy & Williams, James, 2003. "Monitoring Poverty trends in Ireland: Results from the 2001 Living in Ireland Survey," Research Series, Economic and Social Research Institute (ESRI), number PRS51.
- Hyun Son, 2003. "A New Poverty Decomposition," Journal of Economic Inequality, Springer, vol. 1(2), pages 181-187, August.
- Tim Callan & Brian Nolan, 1987.
"Concepts of Poverty and the Poverty Line,"
WP002, Economic and Social Research Institute (ESRI).
- repec:ebl:ecbull:v:9:y:2008:i:19:p:1-2 is not listed on IDEAS
- Zhang, Yin & Wan, Guanghua, 2006.
"The impact of growth and inequality on rural poverty in China,"
Journal of Comparative Economics,
Elsevier, vol. 34(4), pages 694-712, December.
- Zhang, Yin & Wan, Guanghua, 2006. "The Impacts of Growth and Inequality on Rural Poverty in China," Working Paper Series RP2006/94, World Institute for Development Economic Research (UNU-WIDER).
- Francis Menjo Baye, 2006. "Growth, Redistribution and Poverty Changes in Cameroon: A Shapley Decomposition Analysis," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(4), pages 543-570, December.
- Paolo Verme, 2006. "Pro-poor Growth during Exceptional Growth. Evidence from a Transition Economy," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 3(1), pages 3-14, June.
- Madden, D. & Smith, F., 2000.
"Poverty in Ireland, 1987-1994: a Stochastic Dominance Approach,"
00/13, College Dublin, Department of Political Economy-.
- David Madden & Fiona Smith, 2000. "Poverty in Ireland, 1987-1994 - A Stochastic Dominance Approach," The Economic and Social Review, Economic and Social Studies, vol. 31(3), pages 187-214.
- Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
- Cathal Clancy & David Madden, 2005. "Growth and Inequality in Ireland, 1987 - 1999," Working Papers 200516, School Of Economics, University College Dublin.
- 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.
- Florent Bresson, 2008. "The estimation of the growth and redistribution components of changes in poverty: a reassessment," Economics Bulletin, AccessEcon, vol. 9(14), pages 1-7.
- repec:ebl:ecbull:v:9:y:2008:i:14:p:1-7 is not listed on IDEAS
- Callan, Tim & Keeney, Mary J. & Nolan, Brian & Maitre, Bertrand, 2004. "Why is Relative Income Poverty so High in Ireland?," Research Series, Economic and Social Research Institute (ESRI), number PRS53.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nicolas Clifton).
If references are entirely missing, you can add them using this form.