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Inequality is bad for the poor

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  • Ravallion, Martin

Abstract

It has been argued that inequality should be of little concern in poor countries on the grounds that (1) absolute poverty in terms of consumption (or income) is the overriding issue in poor countries, and (2) the only thing that really matters to reducing absolute income poverty is the rate of economic growth. The author takes (1) as given but questions (2). He argues that there are a number of ways in which the extent of inequality in a society, and how it evolves over time, influences the extent of poverty today and the prospects for rapid poverty reduction in the future.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3677.

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Date of creation: 01 Aug 2005
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Handle: RePEc:wbk:wbrwps:3677

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  1. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June.
  2. Bardhan, Pranab & Bowles, Samuel & Gintis, Herbert, 1999. "Wealth Inequality, Wealth Constraints and Economic Performance," Center for International and Development Economics Research, Working Paper Series qt3bh899fh, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
  3. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," World Bank Economic Review, World Bank Group, vol. 10(1), pages 1-25, January.
  4. 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.
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  7. Mansuri, Ghazala & Rao, Vijayendra, 2004. "Community-based (and driven) development : A critical review," Policy Research Working Paper Series 3209, The World Bank.
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  9. Garcia-Penalosa, Cecilia & Aghion, Philippe & Caroli, Eve, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Economics Papers from University Paris Dauphine 123456789/10091, Paris Dauphine University.
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  18. Bob Baulch & John Hoddinott, 2000. "Economic mobility and poverty dynamics in developing countries," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 1-24.
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  20. Ravallion, Martin, 2001. "Growth, Inequality and Poverty: Looking Beyond Averages," World Development, Elsevier, vol. 29(11), pages 1803-1815, November.
  21. Dollar, David & Kraay, Aart, 2001. "Growth is good for the poor," Policy Research Working Paper Series 2587, The World Bank.
  22. Jyotsna Jalan & Martin Ravallion, 2000. "Is transient poverty different? Evidence for rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 82-99.
  23. Kakwani, Nanak, 1993. "Poverty and Economic Growth with Application to Cote d'Ivoire," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(2), pages 121-39, June.
  24. Perotti, Roberto, 1996. " Growth, Income Distribution, and Democracy: What the Data Say," Journal of Economic Growth, Springer, vol. 1(2), pages 149-87, June.
  25. Ravallion, Martin & Chen, Shaohua, 2005. "Hidden impact? Household saving in response to a poor-area development project," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2183-2204, December.
  26. Kraay, Aart, 2006. "When is growth pro-poor? Evidence from a panel of countries," Journal of Development Economics, Elsevier, vol. 80(1), pages 198-227, June.
  27. 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.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. End of year catch-up: FairTrade, mobility, African exports, stinginess, malaria, poverty traps, inequality, 2007 predictions
    by Jim in Our Word is Our Weapon on 2006-12-31 19:12:35
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Cited by:
  1. Ugo Gentilini, 2006. "How are We doing on Poverty and Hunger Reduction? A New Measyre of Country-Level Progress," Departmental Working Papers of Economics - University 'Roma Tre' 0068, Department of Economics - University Roma Tre.
  2. Liyanage Devangi H. Perera & Grace H.Y. Lee, 2013. "Have Economic Growth And Institutional Quality Contributed To Poverty And Inequality Reduction In Asia?," Development Research Unit Working Paper Series 37-13, Monash University, Department of Economics.
  3. Dominique van de Walle & Dorothyjean Cratty, 2004. "Is the emerging non-farm market economy the route out of poverty in Vietnam?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(2), pages 237-274, 06.
  4. Gutierrez, Catalina & Orecchia, Carlo & Paci, Pierella & Serneels, Pieter, 2007. "Does employment generation really matter for poverty reduction ?," Policy Research Working Paper Series 4432, The World Bank.
  5. Gabriele, Alberto & Schettino, Francesco, 2007. "Child Malnutrition and Mortality in Developing Countries: Evidence from a Cross-Country Analysis," MPRA Paper 3132, University Library of Munich, Germany, revised Jul 2007.
  6. Nicole Alice Sindzingre, 2008. "From Growth to Poverty Reduction: a New Conceptual Framework in Development Economics," Post-Print halshs-00648001, HAL.
  7. Donaldson, John A., 2008. "Growth is Good for Whom, When, How? Economic Growth and Poverty Reduction in Exceptional Cases," World Development, Elsevier, vol. 36(11), pages 2127-2143, November.
  8. Francesco Schettino & Alberto Gabriele, 2008. "Child malnutrition and mortality in China and Vietnam in a comparative perspective," Economic Change and Restructuring, Springer, vol. 41(1), pages 29-59, March.
  9. Alberto, Gabriele & Schettino, Francesco, 2006. "Child Mortality In China And Vietnam In A Comparative Perspective," MPRA Paper 3987, University Library of Munich, Germany, revised Dec 2006.

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