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On various ways of measuring pro-poor growth

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  • Deutsch, Joseph
  • Silber, Jacques

Abstract

This paper examines three possible approaches to pro-poor growth. The first one assumes that the poverty line remains constant in real terms over time. The second perspective examines the case where the poverty line is equal to half the median of the income distribution but assumes that such a poverty line is determined exogenously. Finally we also propose a third type of decomposition of the change in poverty, one which is obtained when the poverty line is assumed to be endogenous. In addition, whatever the assumption made concerning the poverty line, we take both a relative and an absolute approach to inequality measurement when defining pro-poor growth. With a relative approach to pro-poor growth it is assumed that inequality does not to vary when all incomes are multiplied by a constant whereas, with an absolute approach to pro-poor growth, inequality is supposed not to vary when an equal sum is added to all incomes. The empirical illustration covers the period 1990-2013;2006 in Israel and the analysis is based on the use of the FGT poverty index. It turns out that the assumptions made concerning the way the poverty line is defined and the choice between a relative and an absolute approach to pro-poor growth greatly affect the results. As a whole however growth was pro-rich in Israel during the 1990-2013;2006 period.

Suggested Citation

  • Deutsch, Joseph & Silber, Jacques, 2011. "On various ways of measuring pro-poor growth," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 5, pages 1-57.
  • Handle: RePEc:zbw:ifweej:201113
    DOI: 10.5018/economics-ejournal.ja.2011-13
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    References listed on IDEAS

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    Cited by:

    1. Marek Kosny, 2011. "Relative affluence measures and an identification of growth pattern," Working Papers 230, ECINEQ, Society for the Study of Economic Inequality.
    2. Ivica Rubil, 2013. "Accounting for Regional Poverty Differences in Croatia: Exploring the Role of Disparities in Average Income and Inequality," Working Papers 1301, The Institute of Economics, Zagreb.
    3. Takahiro Akita & Sachiko Miyata, 2020. "Assessing Pro-poorness of Regional Economic Growth: Evidence from Indonesia, 2004-2014," Working Papers EMS_2020_03, Research Institute, International University of Japan.
    4. Francisco Azpitarte, 2014. "Was Pro-Poor Economic Growth in Australia for the Income-Poor? And for the Multidimensionally-Poor?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(3), pages 871-905, July.
    5. Marek Kośny & Gastón Yalonetzky, 2015. "Relative income change and pro-poor growth," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(3), pages 311-327, December.
    6. Tomáš Domonkos & Filip Ostrihoň & Brian König, 2021. "Hurdling through the great recession: winners and losers among post-communist EU countries in pro-poor growth," Empirical Economics, Springer, vol. 60(2), pages 893-918, February.
    7. Marek Kośny, 2012. "Relative Income Changes and an Identification of Growth Pattern," Working Papers 268, ECINEQ, Society for the Study of Economic Inequality.
    8. Harmáček, Jaromír & Syrovátka, Miroslav & Dušková, Lenka, 2017. "Pro-poor growth in East Africa," The Quarterly Review of Economics and Finance, Elsevier, vol. 64(C), pages 82-93.

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    More about this item

    Keywords

    inequality; Israel; pro-poor growth; Watts index;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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