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Measuring Pro-Poor Growth with Non-Income Indicators

In order to track progress on MDG1 and explicitly link growth, inequality, and poverty reduction, several measures of ’pro-poor growth’ have been proposed in the literature and used in applied academic and policy work. These measures, particularly the ones derived from the growth incidence curve, allow a much more detailed assessment of the distributional impact of growth and its link to poverty reduction. At the same time, this toolbox has been developed and to date only applied for tracking progress in reducing the income dimension of poverty. There are no corresponding measures for tracking progress on non-income dimensions of poverty, and thus progress on MDGs 2-6. In this paper, we propose to extend the approach of pro-poor growth measurement to non-income dimensions of poverty (particularly health and education). We show theoretically and illustrate with data from Bolivia empirically that it is possible to extend this pro-poor growth toolbox to non-income dimensions and show that it generates new insights. In particular, it allows a much more detailed assessment of progress towards MDGs 2-6 by focusing on the distribution of progress, rather than simply focusing on mean progress. Moreover, this extension allows the assessment of the linkage between progress in income and non-income dimensions of poverty which is an important extension to traditional incidence analysis and furthermore allows an explicit assessment of the linkage between progress in MDG1 and MDGs 2-6.

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Paper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 132.

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Length: 40 pages
Date of creation: 18 Nov 2005
Date of revision:
Handle: RePEc:got:iaidps:132
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  1. Sen, Amartya, 1988. "The concept of development," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 1, pages 9-26 Elsevier.
  2. Thomas, Vinod & Wang, Yan & Fan, Xibo, 2001. "Measuring education inequality - Gini coefficients of education," Policy Research Working Paper Series 2525, The World Bank.
  3. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," Journal of Economic Inequality, Springer, vol. 1(1), pages 25-49, April.
  4. van de Walle, Dominique, 1996. "Assessing the welfare impacts of public spending," Policy Research Working Paper Series 1670, The World Bank.
  5. Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August.
  6. Basu, Kaushik & Foster, James E., 1998. "On measuring literacy," Policy Research Working Paper Series 1997, The World Bank.
  7. Jean-Yves Duclos & Quentin Wodon, 2004. "What is "Pro-Poor"?," Cahiers de recherche 0425, CIRPEE.
  8. Ravallion, Martin & Shaohua Chen, 2001. "Measuring pro-poor growth," Policy Research Working Paper Series 2666, The World Bank.
  9. Mukherjee, Diganta, 2001. "Measuring multidimensional deprivation," Mathematical Social Sciences, Elsevier, vol. 42(3), pages 233-251, November.
  10. Lanjouw, Peter & Ravallion, Martin, 1998. "Benefit incidence and the timing of program capture," Policy Research Working Paper Series 1956, The World Bank.
  11. Osberg, L., 1998. "Schooling, Literacy and Individual Earnings," Department of Economics at Dalhousie University working papers archive 98-06, Dalhousie, Department of Economics.
  12. Ehrlich, Isaac & Lui, Francis, 1997. "The problem of population and growth: A review of the literature from Malthus to contemporary models of endogenous population and endogenous growth," Journal of Economic Dynamics and Control, Elsevier, vol. 21(1), pages 205-242, January.
  13. Stephan Klasen & Melanie Grosse & Rainer Thiele & Jann Lay & Julius Spatz & Manfred Wiebelt, 2004. "Operationalizing Pro-Poor Growth - Country Case Study: Bolivia," Ibero America Institute for Econ. Research (IAI) Discussion Papers 101, Ibero-America Institute for Economic Research.
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