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Economic growth and poverty: a tale of two decades

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  • Christopher Johnson
  • John Formby
  • Hoseong Kim

Abstract

The relationship between poverty and economic growth is reexamined using pooled cross section and time series estimates of state level poverty. Empirical evidence is provided for both cash and comprehensive income headcounts and Sen indexes of poverty. Particular emphasis is placed on the differential impacts of growth on poverty in the long economic expansions of the 1980s and 1990s. Contrary to prior work, we find that the long-term effects of growth did not strengthen and may have actually diminished during the 1990s.

Suggested Citation

  • Christopher Johnson & John Formby & Hoseong Kim, 2011. "Economic growth and poverty: a tale of two decades," Applied Economics, Taylor & Francis Journals, vol. 43(28), pages 4277-4288.
  • Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4277-4288
    DOI: 10.1080/00036846.2010.491451
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    References listed on IDEAS

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    1. Rebecca M. Blank, 1991. "Why Were Poverty Rates So High in the 1980s?," NBER Working Papers 3878, National Bureau of Economic Research, Inc.
    2. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    3. Donald G. Freeman, 2003. "Poverty and the Macroeconomy: Estimates from U.S. Regional Data," Contemporary Economic Policy, Western Economic Association International, vol. 21(3), pages 358-371, July.
    4. W. H. Locke Anderson, 1964. "Trickling Down: The Relationship Between Economic Growth and the Extent of Poverty Among American Families," The Quarterly Journal of Economics, Oxford University Press, vol. 78(4), pages 511-524.
    5. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    6. Rebecca M. Blank, 2000. "Distinguished Lecture on Economics in Government: Fighting Poverty: Lessons from Recent U.S. History," Journal of Economic Perspectives, American Economic Association, vol. 14(2), pages 3-19, Spring.
    7. John Iceland, 2003. "Why poverty remains high: The role of income growth, economic inequality, and changes in family structure, 1949–1999," Demography, Springer;Population Association of America (PAA), vol. 40(3), pages 499-519, August.
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    Cited by:

    1. Salvador Pérez-Moreno, 2016. "Revisiting Growth-Poverty Relationship: A Medium-Term Causality Approach," South African Journal of Economics, Economic Society of South Africa, vol. 84(4), pages 624-635, December.
    2. Sadia ABBAS* & M. Masood AZEEM** & Khuda BAKHSH* & Alvina FATIMA* & Abdus SAMIE*, 2014. "POVERTY REDUCTION IN PAKISTAN: The Role of Agricultural and Industrial Subsector’s Growth," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 24(2), pages 143-157.
    3. Dustin Chambers & Patrick A. McLaughlin & Laura Stanley, 2019. "Regulation and poverty: an empirical examination of the relationship between the incidence of federal regulation and the occurrence of poverty across the US states," Public Choice, Springer, vol. 180(1), pages 131-144, July.
    4. Brian Goesling & Hande Inanc & Angela Rachidi, "undated". "Success Sequence: A Synthesis of the Literature," Mathematica Policy Research Reports 726444f0055c41fca02d9cf39, Mathematica Policy Research.
    5. Lemoine, Coralie & Loubière, Sandrine & Boucekine, Mohamed & Girard, Vincent & Tinland, Aurélie & Auquier, Pascal, 2021. "Cost-effectiveness analysis of housing first intervention with an independent housing and team support for homeless people with severe mental illness: A Markov model informed by a randomized controlle," Social Science & Medicine, Elsevier, vol. 272(C).

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