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Poverty Accounting. A fractional response approach to poverty decomposition

Listed author(s):
  • Richard Bluhm

    ()

    (Leibniz University Hannover, Germany)

  • Denis de Crombrugghe

    ()

    (Maastricht University, The Netherlands)

  • Adam Szirmai

    ()

    (UNU-MERIT and Maastricht University, The Netherlands)

This paper proposes a new empirical framework for poverty accounting. Using a large collection of household surveys from 124 countries, we estimate income and inequality (semi-)elasticities of poverty for the \$2 and \$1.25 a day poverty lines as well as their contributions to poverty alleviation. We show that initial inequality is a strong moderator of the impact of growth and there has been a shift towards more pro-poor growth around the turn of the millennium. We project poverty rates until 2030 and show that an end of extreme poverty within a generation is unlikely.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2016-413.pdf
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Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 413.

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Length: 53 pages
Date of creation: Oct 2016
Handle: RePEc:inq:inqwps:ecineq2016-413
Contact details of provider: Web page: http://www.ecineq.org
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