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Microdeterminants of consumption, poverty, growth, and inequality in Bangladesh

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  • Wodon, Quentin T.

Abstract

Using household data from five successive national surveys, the author analyzes the microdeterminants of (and changes in) consumption, poverty, growth, and inequality in Bangladesh from 1983 to 1996. Education, demographics, land ownership, occupation, and geographic location all affect consumption and poverty. The gains in per capita consumption associated with many of these household characteristics tend to be stable over time. Returns to demographics (variables in household size) have the greatest impact on growth, perhaps because of improving employment opportunities for women. Education (in urban areas) and land (in rural areas) contribute most to measures of between-group inequality. Location takes second place, in both urban and rural areas. The author introduces the concept of conditional between-group inequality. Existing group decompositions of the Gini index along one variable do not control for other characteristics correlated with that variable. Conditional between-group Ginis avoid this pitfall. He also shows how to use unconditional and conditional between-group Ginis for simulating policies.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2076.

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Date of creation: 31 Mar 1999
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Handle: RePEc:wbk:wbrwps:2076

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Keywords: Health Monitoring&Evaluation; Environmental Economics&Policies; Services&Transfers to Poor; Public Health Promotion; Housing&Human Habitats; Inequality; Poverty Assessment; Environmental Economics&Policies; Services&Transfers to Poor; Safety Nets and Transfers;

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  1. Yitzhaki, Shlomo & Lerman, Robert I, 1991. "Income Stratification and Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(3), pages 313-29, September.
  2. Ravallion, Martin & Huppi, Monika, 1991. "Measuring Changes in Poverty: A Methodological Case Study of Indonesia during an Adjustment Period," World Bank Economic Review, World Bank Group, vol. 5(1), pages 57-82, January.
  3. Wodon, Quentin T., 1999. "Between group inequality and targeted transfers," Policy Research Working Paper Series 2075, The World Bank.
  4. Quentin Wodon, 1997. "Food energy intake and cost of basic needs: Measuring poverty in Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 34(2), pages 66-101.
  5. Ravallion, Martin & Wodon, Quentin, 1997. "Poor areas, or only poor people?," Policy Research Working Paper Series 1798, The World Bank.
  6. Lerman, Robert I. & Yitzhaki, Shlomo, 1984. "A note on the calculation and interpretation of the Gini index," Economics Letters, Elsevier, vol. 15(3-4), pages 363-368.
  7. Ravallion, Martin & Sen, Binayak, 1994. "When method matters : toward a resolution of the debate about Bangladesh's poverty measures," Policy Research Working Paper Series 1359, The World Bank.
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Citations

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Cited by:
  1. Jean-Pierre Lachaud, 2003. "Les déterminants de l'inégalité du bien-être au Burkina Faso : une décomposition de régression," Documents de travail 85, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
  2. Coudouel, Aline & Hentschel, Jesko & Wodon, Quentin, 2002. "Mesure et analyse de la pauvreté
    [Poverty Measurement and Analysis]
    ," MPRA Paper 10490, University Library of Munich, Germany.
  3. Kapsos, Steven, 2008. "The gender wage gap in Bangladesh," ILO Working Papers 413417, International Labour Organization.
  4. Glewwe, Paul & Gragnolatti, Michele & Zaman, Hassan, 2000. "Who gained from Vietnam's boom in the 1990s? An analysis of poverty and inequality trends," Policy Research Working Paper Series 2275, The World Bank.
  5. Jean-Pierre Lachaud, 2005. "Crise ivoirienne, envois de fonds et pauvreté au Burkina Faso," Revue Tiers Monde, Programme National Persée, vol. 46(183), pages 651-673.
  6. סלימאן אבו-בדר ודר' דניאל גוטליב, 2009. "עוני, חינוך ותעסוקה בחברה הערבית-בדואית: מבט השוואתי (באנגלית)," Working Papers 357, National Insurance Institute of Israel.
  7. Coudouel, Aline & Hentschel, Jesko & Wodon, Quentin, 2002. "Измерение И Анализ Бедности
    [Poverty Measurement and Analysis]
    ," MPRA Paper 10492, University Library of Munich, Germany.
  8. 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 136, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
  9. Coudouel, Aline & Hentschel, Jesko & Wodon, Quentin, 2002. "Medición y análisis de la pobreza
    [Poverty Measurement and Analysis]
    ," MPRA Paper 10491, University Library of Munich, Germany.
  10. Suleiman Abu-Bader & Daniel Gottlieb, 2009. "Poverty, education and employment in the Arab-Bedouin society: A comparative view," Working Papers 137, ECINEQ, Society for the Study of Economic Inequality.
  11. Awulachew, Seleshi Bekele & Erkossa, Teklu & Balcha, Yodit, 2008. "2nd Forum on Irrigation and water for sustainable development: 15 –16 December, 2008 Ghion Hotel, Addis Ababa, Ethiopia," IWMI Conference Proceedings 118411, International Water Management Institute.
  12. Imran Sharif Chaudhry & Shahnawaz Malik & Abo ul Hassan, 2009. "The Impact of Socioeconomic and Demographic Variables on Poverty: A Village Study," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 14(1), pages 39-68, Jan-Jun.
  13. Tregenna, Fiona, 2011. "Halving Poverty in South Africa: Growth and Distributional Aspects," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  14. Tamvada, Jagannadha Pawan, 2009. "Entrepreneurship and Welfare," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  15. Munshi Sulaiman & Farhad Ameen, 2007. "Social Capital and Economic Well-being," Working Papers id:984, eSocialSciences.

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