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Was Economic Growth in Australia Good for the Income-Poor? and for the Multidimensionally-Poor?

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  • Francisco Azpitarte

    () (Melbourne Institute of Applied Economic and Social Research, University of Melbourne, Victoria 3010, Australia)

Abstract

We investigate the pro-poorness of Australias strong economic growth in the fi rst decade of the XXI century using anonymous and non-anonymous approaches to the measurement of pro-poor growth. The sensitivity of pro-poor growth evaluations to the de nition of poverty is evaluated by comparing the results for the standard income-poverty measure with those based on a multidimensional de nition of poverty. We nd that Australian growth in this period can be only categorized as pro-poor according to the weakest concept of pro-poorness that does not require any bias of growth towards the poor. In addition, our results indicate that growth was clearly more pro-income poor than pro-multidimensionally poor. Counterfactual distribution analysis reveals that di¤erences in the distribution of health between these two groups is the non-income factor that most contributes to explain this result.

Suggested Citation

  • Francisco Azpitarte, 2012. "Was Economic Growth in Australia Good for the Income-Poor? and for the Multidimensionally-Poor?," Working Papers 278, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2012-278
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    Keywords

    Growth; pro-poor; anonymity axiom.;

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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