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Poverty and Inequality: A Micro Framework

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  • Abdelkrim Araar
  • Jean-Yves Duclos

Abstract

This paper explores the link between poverty and inequality through an analysis of the poverty impact of changes in income-component inequality and in between- and within-group inequality. This helps understand various possible linkages between poverty, growth and inequality. It might also help design policies to improve both equity and welfare. The tools are applied using the recent 2004 Nigerian national household survey. Interesting insights emerge from both the analytical and empirical analyses. One such insight is that both the sign and the size of the elasticities can be quite sensitive to the choice of measurement assumptions (such as the choice of inequality and poverty-aversion parameters, and that of the poverty line). The elasticities are also very much distribution-sensitive and dependent on the type of inequality-changing processes taking place. This also suggests that the response of poverty to growth can also be expected to be significantly context-specific. Copyright 2010 The author 2010. Published by Oxford University Press on behalf of the Centre for the Study of African Economies. All rights reserved. For permissions, please email: journals.permissions@oxfordjournals.org, Oxford University Press.

Suggested Citation

  • Abdelkrim Araar & Jean-Yves Duclos, 2010. "Poverty and Inequality: A Micro Framework," Journal of African Economies, Centre for the Study of African Economies, vol. 19(3), pages 357-398, June.
    • Handle: RePEc:oup:jafrec:v:19:y:2010:i:3:p:357-398
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    File URL: http://hdl.handle.net/10.1093/jae/ejq005
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    Cited by:

    1. Abdelkrim Araar, 2012. "Expected Poverty Changes with Economic Growth and Redistribution," Cahiers de recherche 1222, CIRPEE.
    2. Boniface Ngah Epo & Francis Menjo Baye, 2016. "Decomposing Poverty-Inequality Linkages Of Sources Of Deprivation By Men-Headed And Women-Headed Households In Cameroon," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 41(1), pages 57-79, March.
    3. Annim, Samuel Kobina & Mariwah, Simon & Sebu, Joshua, 2012. "Spatial inequality and household poverty in Ghana," Economic Systems, Elsevier, vol. 36(4), pages 487-505.
    4. Richard Mussa, 2014. "Household Expenditure Components and the Poverty and Inequality Relationship in Malawi," African Development Review, African Development Bank, vol. 26(1), pages 138-147.
    5. Jude Okechukwu Chukwu, 2019. "Poverty Impact of Variations in Within-group and Between-group Inequality in Nigeria: New Estimates Using Two Household Survey Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(2), pages 539-549, January.
    6. Novignon, Jacob & Nonvignon, Justice & Mussa, Richard, 2015. "The poverty and inequality nexus in Ghana: a decomposition analysis of household expenditure components," MPRA Paper 63017, University Library of Munich, Germany.
    7. Mussa, Richard, 2011. "The poverty-inequality relationship in Malawi: A multidimensional perspective," MPRA Paper 31413, University Library of Munich, Germany.

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