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The Macroeconomics of Poverty Reduction

This paper puts in perspective the recent research on the macroeconomics of poverty reduction. It begins by arguing that research on poverty was, and continues to be, distorted by an excessive focus on micro and measurement issues. The debate on "pro-poor growth" is used to illustrate the extent of this bias. Next, it provides a review of the transmission channels of macroeconomic policies to the poor, with particular emphasis on the role of the labor market. It then presents a new class of theoretical and applied macroeconomic models for poverty analysis. It concludes by identifying directions for future research.

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Paper provided by Economics, The Univeristy of Manchester in its series Centre for Growth and Business Cycle Research Discussion Paper Series with number 43.

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Length: 86 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:man:cgbcrp:43
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