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On the unequal inequality of poor communities

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Author Info
Elbers, Chris
Lanjouw, Peter F.
Mistiaen, Johan
Ozler, Berk
Simler, Ken

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Abstract

Important differences exist between communities with respect to their needs, capacities, and circumstances. As central governments are not able to discern these differences fully, they seek to achieve their policy objectives by relying on decentralized mechanisms that use local information. However, household and individual characteristics within communities can also vary substantially. A growing theoretical literature suggests that inequality within communities can influence policy outcomes, and that this influence could be harmful or helpful, depending on the circumstances. Empirical investigations into the impact of inequality have, to date, largely been held back by a lack of systematic evidence on community-level inequality. The authors use household survey and population census data to estimate per capita consumption inequality within communities in three developing countries: Ecuador, Madagascar, and Mozambique. Communities are found to vary markedly from one another in terms of the degree of inequality they exhibit. The authors also show that there should be no presumption that inequality is less severe in poor communities. They argue that the kind of community-level inequality estimates generated in this paper can be used in designing and evaluating decentralized antipoverty programs.

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Publisher Info
Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3313.

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Date of creation: 01 May 2004
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Handle: RePEc:wbk:wbrwps:3313

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Related research
Keywords: Poverty Impact Evaluation; Decentralization; Housing&Human Habitats; Services&Transfers to Poor; Human Rights; Governance Indicators; Inequality; Rural Poverty Reduction; Services&Transfers to Poor; Safety Nets and Transfers;

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  1. Chris Elbers & Peter Lanjouw & Johan Mistiaen & Berk Özler, 2008. "Reinterpreting between-group inequality," Journal of Economic Inequality, Springer, vol. 6(3), pages 231-245, September. [Downloadable!] (restricted)
  2. Claudio Agostini & Phillip Brown, 2007. "Desigualdad geográfica en Chile," Revista de Analisis Economico – Economic Analysis Review, Ilades-Georgetown University, Economics Department, vol. 22(1), pages 3-33, June. [Downloadable!]
  3. Elbers, Chris & Lanjouw, Peter & Mistiaen, Johan A. & Ozler, Berk, 2005. "Re-interpreting sub-group inequality decompositions," Policy Research Working Paper Series 3687, The World Bank. [Downloadable!]
  4. Araujo, M. Caridad & Ferreira, Francisco H.G. & Lanjouw, Peter & Ozler, Berk, 2006. "Local inequality and project choice : theory and evidence from Ecuador," Policy Research Working Paper Series 3997, The World Bank. [Downloadable!]
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  5. Tomoki Fujii, 2007. "Geographic Decomposition of Inequality in Health and Wealth: Evidence from Cambodia," Working Papers 24-2007, Singapore Management University, School of Economics. [Downloadable!]
  6. Alain de Janvry & Elisabeth Sadoulet, 2007. "Toward a territorial approach to rural development," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 4(1), pages 66-98. [Downloadable!]
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