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Accounting for recent trends in absolute poverty in Poland: A decomposition analysis

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  • Michał Brzeziński

    ()
    (Faculty of Economic Sciences, University of Warsaw)

Abstract

This paper uses several decomposition of poverty and poverty changes to identify factors explaining recent changes in absolute income and consumption poverty in Poland during 1998−2008. Shapley decompositions of poverty changes into growth and redistribution components show that fast economic growth was the main source of a radical fall in absolute poverty since 2005. Distributional changes had a more profound effect on absolute poverty during 1998−2005. Sectoral decompositions of poverty suggest that stagnant wages and pensions as well as growing unemployment were major factors accounting for increasing poverty between 1998 and 2005. Decompositions of poverty indices by income sources show that social insurance is the most effective income source in reducing poverty incidence in Poland, while social assistance is the most effective source in fighting intensity of poverty.

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File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP59.pdf
File Function: First version, 2011
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Bibliographic Info

Paper provided by Faculty of Economic Sciences, University of Warsaw in its series Working Papers with number 2011-19.

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Length: 18 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:war:wpaper:2011-19

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Keywords: poverty; growth; inequality; poverty decompositions; transfers; Poland;

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  1. Osberg, L & Xu, K, 1997. "International Comparisons of Poverty Intensity : Index Decomposition and Bootstrap Inference," Department of Economics at Dalhousie University working papers archive 97-03, Dalhousie, Department of Economics.
  2. Shorrocks, Anthony F, 1995. "Revisiting the Sen Poverty Index," Econometrica, Econometric Society, vol. 63(5), pages 1225-30, September.
  3. Thon, Dominique, 1979. "On Measuring Poverty," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(4), pages 429-39, December.
  4. Bibi, Sami & Duclos, Jean-Yves, 2008. "A Comparison of the Poverty Impact of Transfers, Taxes and Market Income across Five OECD Countries," IZA Discussion Papers 3824, Institute for the Study of Labor (IZA).
  5. Stanislav Kolenikov, 2010. "Resampling variance estimation for complex survey data," Stata Journal, StataCorp LP, vol. 10(2), pages 165-199, June.
  6. Adam Szulc, 2008. "Checking the consistency of poverty in Poland: 1997-2003 evidence," Post-Communist Economies, Taylor & Francis Journals, vol. 20(1), pages 33-55.
  7. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
  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. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  10. Zheng, Buhong, 1997. " Aggregate Poverty Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 11(2), pages 123-62, June.
  11. Adam Szulc, 2009. "Checking The Efficiency of The Social Assistance System in Poland," Working Papers 43, Institute of Statistics and Demography, Warsaw School of Economics.
  12. The World Bank, 2000. "Natural Resource Management Strategy. Eastern Europe and Central Asia," Papers 485, World Bank - Technical Papers.
  13. Howes, Stephen & Lanjouw, Jean Olson, 1998. "Does Sample Design Matter for Poverty Rate Comparisons?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(1), pages 99-109, March.
  14. Adam Szulc, 2006. "POVERTY IN POLAND DURING THE 1990s: ARE THE RESULTS ROBUST?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(3), pages 423-448, 09.
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