Macroeconomic adjustment and the poor : analytical issues and cross-country evidence
Abstract
The author studies the links between macroeconomic adjustment and poverty. First, he summarizes some of the recent evidence on poverty in the developing world. Second, he reviews the various channels through which macroeconomic policies affect the poor. Third, the author emphasizes the role of the labor market. He develops an analytical framework that captures some of the main features of the urban labor market in developing countries and studies the effects of fiscal adjustment on wages, employment, and poverty. Fourth, he presents cross-country regressions linking various macroeconomic and structural variables to poverty. The author finds that output growth and real exchange rate depreciations tend to lower poverty, while illiteracy, income inequality, and macroeconomic volatility tend to increase poverty. In addition, the impact of growth on poverty appears to be asymmetric, and to result from a significant relationship between episodes of increasing poverty and negative growth rates.Download Info
If 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 Info
Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2788.Length:
Date of creation: 28 Feb 2002
Date of revision:
Handle: RePEc:wbk:wbrwps:2788
Contact details of provider:
Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Email:
Web page: http://www.worldbank.org/
More information through EDIRC
Related research
Keywords: Labor Policies; Economic Theory&Research; Services&Transfers to Poor; Environmental Economics&Policies; Economic Conditions and Volatility; Environmental Economics&Policies; Achieving Shared Growth; Economic Theory&Research; Inequality; Poverty Assessment;Other versions of this item:
- Pierre-Richard Agénor, 2004. "Macroeconomic Adjustment and the Poor: Analytical Issues and Cross-Country Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 18, pages 351-408, 07.
References
References listed on IDEASPlease 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.:
- Theo S Eicher & Cecilia Garcia Penalosa, .
"Inequality and Growth,"
Discussion Papers in Economics at the University of Washington
0083, Department of Economics at the University of Washington.
- Theo S Eicher & Cecilia Garcia Penalosa, . "Inequality and Growth," Working Papers 0083, University of Washington, Department of Economics.
- Dorosh, Paul A. & Sahn, David E., 2000. "A General Equilibrium Analysis of the Effect of Macroeconomic Adjustment on Poverty in Africa," Journal of Policy Modeling, Elsevier, vol. 22(6), pages 753-776, November.
- Eduardo Lora & Gustavo Márquez, 1998. "The Employment Problem in Latin America: Perceptions and Stylized Facts," Research Department Publications 4114, Inter-American Development Bank, Research Department.
- Gaviria Alejandro, 2002.
"Household Responses to Adverse Income Shocks in Latin America,"
REVISTA DESARROLLO Y SOCIEDAD,
UNIVERSIDAD DE LOS ANDES-CEDE.
- Alejandro Gaviria Uribe, 2001. "Household Responses to Adverse Income Shocks in Latin America," INFORMES DE INVESTIGACIÃN 002795, FEDESARROLLO.
- Alejandro Gaviria, 2001. "Household Responses to Adverse Income Shocks in Latin America," Research Department Publications 4273, Inter-American Development Bank, Research Department.
- Ales Bulir, 1998.
"Income Inequality - Does Inflation Matter?,"
IMF Working Papers
98/7, International Monetary Fund.
- By Ales BulÌr, 2001. "Income Inequality: Does Inflation Matter?," IMF Staff Papers, Palgrave Macmillan, vol. 48(1), pages 5.
- Agenor, Pierre-Richard & Aizenman, Joshua, 1999.
"Macroeconomic adjustment with segmented labor markets,"
Journal of Development Economics,
Elsevier, vol. 58(2), pages 277-296, April.
- Joshua Aizenman & Pierre-Richard Agénor, 1994. "Macroeconomic Adjustment with Segmented Labor Markets," IMF Working Papers 94/56, International Monetary Fund.
- Pierre-Richard Agenor & Joshua Aizenman, 1994. "Macroeconomic Adjustment with Segmented Labor Markets," NBER Working Papers 4769, National Bureau of Economic Research, Inc.
- Gustavo Anríquez & Kevin Cowan & José De Gregorio, 1998. "Poverty and Macroeconomic Policies: Chile 1987-1994," Documentos de Trabajo 27, Centro de Economía Aplicada, Universidad de Chile.
- Bleaney, Michael F., 1996. "Macroeconomic stability, investment and growth in developing countries," Journal of Development Economics, Elsevier, vol. 48(2), pages 461-477, March.
- Gylfasson, Thorvaldur, 1997.
"Output Gain From Economic Stabilization,"
Seminar Papers
606, Stockholm University, Institute for International Economic Studies.
- Gylfason, Thorvaldur, 1998. "Output gains from economic stabilization," Journal of Development Economics, Elsevier, vol. 56(1), pages 81-96, June.
- Gylfason, T., 1996. "Output Gains from Economic Stabilization," Papers 606, Stockholm - International Economic Studies.
- Bourguignon, Francois & de Melo, Jaime & Suwa, Akiko, 1991. "Distributional Effects of Adjustment Policies: Simulations for Archetype Economies in Africa and Latin America," World Bank Economic Review, World Bank Group, vol. 5(2), pages 339-66, May.
- William T. Dickens & Kevin Lang, 1985.
"A Test of Dual Labor Market Theory,"
NBER Working Papers
1314, National Bureau of Economic Research, Inc.
- Dickens, William T & Lang, Kevin, 1985. "A Test of Dual Labor Market Theory," American Economic Review, American Economic Association, vol. 75(4), pages 792-805, September.
- Breen, R. & Garcia-Penalosa, C., 1999.
"Income Inequality and Macroeconomic Volatility: an Empirical Investigation,"
Economics Papers
1999-w20, Economics Group, Nuffield College, University of Oxford.
- Richard Breen & Cecilia García-Peñalosa, 2005. "Income Inequality and Macroeconomic Volatility: An Empirical Investigation," Review of Development Economics, Wiley Blackwell, vol. 9(3), pages 380-398, 08.
- Breen, R. & Garcia-Penalosa, C., 1999. "Income Inequality and Macroeconomic Volatility: an Empirical Investigation," G.R.E.Q.A.M. 99b11, Universite Aix-Marseille III.
- Galor, Oded & Zeira, Joseph, 1993. "Income Distribution and Macroeconomics," Review of Economic Studies, Wiley Blackwell, vol. 60(1), pages 35-52, January.
- Quentin Wodon & Rodrigo Castro & Kihoon Lee, 2001. "Poverty in Latin America: Trends (1986-1998) and Determinants," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 38(114), pages 127-153.
- Canagarajah, Sudharshan & Mazumdar, Dipak, 1997. "Employment, labor markets, and poverty in Ghana," Policy Research Working Paper Series 1845, The World Bank.
- Eduardo Lora & Mauricio Olivera, 1998. "Macro Policy and Employment Problems in Latin America," Research Department Publications 4116, Inter-American Development Bank, Research Department.
- Suzanne Duryea & Miguel Székely, 1998. "Labor Markets in Latin America: A Supply-Side Story," Research Department Publications 4120, Inter-American Development Bank, Research Department.
- Philip R. Gerson, 1998. "Poverty, Income Distribution, and Economic Policy in the Philippines," IMF Working Papers 98/20, International Monetary Fund.
- Carmen Pagés-Serra & Gustavo Márquez, 1998. "Ties That Bind: Employment Protection and Labor Market Outcomes in Latin America," Research Department Publications 4118, Inter-American Development Bank, Research Department.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:2788For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

