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Linkages between Pro-Poor Growth, Social Programmes and Labour Market: The Recent Brazilian Experience

  • Nanak Kakwani

    ()

    (International Poverty Centre)

  • Marcelo Neri

    ()

    (FGV, Centre for Social Policies - IBRE and EPGE)

  • Hyun H. Son

    ()

    (International Poverty Centre)

From a methodological point of view, this paper makes two contributions to the literature. One contribution is the proposal of a new measure of pro-poor growth. This new measure provides the linkage between growth rates in mean income and in income inequality. In this context, growth is defined as pro-poor (or anti-poor) if there is a gain (or loss) in the growth rate due to a decrease (or increase) in inequality. The other contribution is a decomposition methodology that explores linkages between three dimensions: growth patterns, labour market performances, and social policies. Through the decomposition analysis, growth in per capita income is explained in terms of four labour market components: the employment rate, hours of work, the labour force participation rate, and productivity. We also assess the contribution of different non-labour income sources to growth patterns. The proposed methodologies are then applied to the Brazilian National Household Survey (PNAD) covering the period 1995-2004. This paper analyzes the evolution of Brazilian social indicators based on per capita income, exploring links with adverse labour market performance and social policy change, with particular emphasis on the expansion of targeted cash transfers and on devising more pro-poor social security benefits.

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File URL: http://www.ipc-undp.org/pub/IPCWorkingPaper26.pdf
File Function: First version, 2006
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Paper provided by International Policy Centre for Inclusive Growth in its series Working Papers with number 26.

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Length: 43
Date of creation: Aug 2006
Date of revision:
Publication status: Published by UNDP - International Poverty Centre, August 2006, pages 1-43
Handle: RePEc:ipc:wpaper:26
Contact details of provider: Web page: http://www.ipc-undp.org
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  1. David Coady & Emmanuel Skoufias, 2004. "On the Targeting and Redistributive Efficiencies of Alternative Transfer Instruments," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 50(1), pages 11-27, 03.
  2. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
  3. Ravallion, Martin & Shaohua Chen, 2001. "Measuring pro-poor growth," Policy Research Working Paper Series 2666, The World Bank.
  4. Grosse, Melanie & Harttgen, Kenneth & Klasen, Stephan, 2008. "Measuring Pro-Poor Growth in Non-Income Dimensions," World Development, Elsevier, vol. 36(6), pages 1021-1047, June.
  5. François Bourguignon & Francisco H. G. Ferreira & Phillippe G. Leite, 2002. "Ex-ante Evaluation of Conditional Cash Transfer Programs: The Case of Bolsa Escola," William Davidson Institute Working Papers Series 516, William Davidson Institute at the University of Michigan.
  6. Marcelo Neri & José Márcio Camargo, 1999. "Distributive effects of Brazilian structural reforms," Textos para discussão 406, Department of Economics PUC-Rio (Brazil).
  7. Rothschild, Michael & Stiglitz, Joseph E., 1973. "Some further results on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 188-204, April.
  8. Sen, Amartya, 1974. "Informational bases of alternative welfare approaches : Aggregation and income distribution," Journal of Public Economics, Elsevier, vol. 3(4), pages 387-403, November.
  9. Ferreira, Francisco H. G. & Lanjouw, Peter & Neri, Marcelo Cortes, 2002. "A Robust Poverty Profile for Brazil Using Multiple Data Sources," Economics Working Papers (Ensaios Economicos da EPGE) 444, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  10. Carola Gruen & Stephan Klasen, 2008. "Growth, inequality, and welfare: comparisons across space and time," Oxford Economic Papers, Oxford University Press, vol. 60(2), pages 212-236, April.
  11. Klasen, Stephan, 1994. "Growth and Well-being: Introducing Distribution-Weighted Growth Rates to Reevaluate U.S. Post-war Economic Performance," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(3), pages 251-72, September.
  12. Dasgupta, Partha & Sen, Amartya & Starrett, David, 1973. "Notes on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 180-187, April.
  13. Kakwani, Nanak, 1981. "Welfare measures : An international comparison," Journal of Development Economics, Elsevier, vol. 8(1), pages 21-45, February.
  14. Eliana Cardoso & Andre Urani & Andre Urani, 1995. "Inflation and Unemployment as Determinants of Inequality in Brazil: The 1980s," NBER Chapters, in: Reform, Recovery, and Growth: Latin America and the Middle East, pages 151-176 National Bureau of Economic Research, Inc.
  15. Skoufias, Emmanuel & Davis, Benjamin & de la Vega, Sergio, 2001. "Targeting the Poor in Mexico: An Evaluation of the Selection of Households into PROGRESA," World Development, Elsevier, vol. 29(10), pages 1769-1784, October.
  16. Nanak Kakwani & Hyun H. Son, 2008. "Poverty Equivalent Growth Rate," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(4), pages 643-655, December.
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