IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/20791.html
   My bibliography  Save this paper

Are the World’s Poorest Being Left Behind?

Author

Listed:
  • Martin Ravallion

Abstract

The traditional approach to poverty measurement puts no explicit weight on success at increasing the typical level of living of the poorest—raising the consumption floor. To address this deficiency, the paper defines and measures the expected value of the floor, allowing for transient effects and measurement errors in survey data. On using all suitable and available surveys for the developing world over 1981-2011, the expected value of the floor is about half the $1.25 a day poverty line. There has been only modest progress in raising the floor, despite much progress in reducing the number living near the floor.

Suggested Citation

  • Martin Ravallion, 2014. "Are the World’s Poorest Being Left Behind?," NBER Working Papers 20791, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:20791
    Note: DEV
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w20791.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kraay, Aart & Raddatz, Claudio, 2007. "Poverty traps, aid, and growth," Journal of Development Economics, Elsevier, vol. 82(2), pages 315-347, March.
    2. Freiman, Christopher, 2012. "Why Poverty Matters Most: Towards a Humanitarian Theory of Social Justice," Utilitas, Cambridge University Press, vol. 24(1), pages 26-40, March.
    3. John E. Roemer, 2014. "Economic Development as Opportunity Equalization," The World Bank Economic Review, World Bank, vol. 28(2), pages 189-209.
    4. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-764, July.
    5. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    6. Banerjee, Abhijit V & Newman, Andrew F, 1994. "Poverty, Incentives, and Development," American Economic Review, American Economic Association, vol. 84(2), pages 211-215, May.
    7. François Bourguignon & Christian Morrisson, 2002. "Inequality Among World Citizens: 1820-1992," American Economic Review, American Economic Association, vol. 92(4), pages 727-744, September.
    8. Bruce E. Hansen, 2000. "Sample Splitting and Threshold Estimation," Econometrica, Econometric Society, vol. 68(3), pages 575-604, May.
    9. Cecilia Garcia-Penalosa & Eve Caroli & Philippe Aghion, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December.
    10. Dasgupta, Partha & Ray, Debraj, 1986. "Inequality as a Determinant of Malnutrition and Unemployment: Theory," Economic Journal, Royal Economic Society, vol. 96(384), pages 1011-1034, December.
    11. Oded Galor & Joseph Zeira, 1993. "Income Distribution and Macroeconomics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(1), pages 35-52.
    12. Martin Ravallion, 2012. "Why Don't We See Poverty Convergence?," American Economic Review, American Economic Association, vol. 102(1), pages 504-523, February.
    13. Fleurbaey,Marc & Maniquet,François, 2011. "A Theory of Fairness and Social Welfare," Cambridge Books, Cambridge University Press, number 9780521887427, November.
    14. Shaohua Chen & Martin Ravallion, 2010. "The Developing World is Poorer than We Thought, But No Less Successful in the Fight Against Poverty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(4), pages 1577-1625.
    15. Ravallion, Martin, 2016. "The Economics of Poverty: History, Measurement, and Policy," OUP Catalogue, Oxford University Press, number 9780190212773, Decembrie.
    16. Stiglitz, Joseph E, 1976. "The Efficiency Wage Hypothesis, Surplus Labour, and the Distribution of Income in L.D.C.s," Oxford Economic Papers, Oxford University Press, vol. 28(2), pages 185-207, July.
    17. Dollar, David & Kleineberg, Tatjana & Kraay, Aart, 2016. "Growth still is good for the poor," European Economic Review, Elsevier, vol. 81(C), pages 68-85.
    18. Azariadis, Costas, 1996. "The Economics of Poverty Traps: Part One: Complete Markets," Journal of Economic Growth, Springer, vol. 1(4), pages 449-496, December.
    19. Ravallion, Martin & Chen, Shaohua, 2003. "Measuring pro-poor growth," Economics Letters, Elsevier, vol. 78(1), pages 93-99, January.
    20. Ben-David, Dan, 1998. "Convergence clubs and subsistence economies," Journal of Development Economics, Elsevier, vol. 55(1), pages 155-171, February.
    21. Puja Dutta & Rinku Murgai & Martin Ravallion & Dominique van de Walle, 2014. "Right to Work? Assessing India's Employment Guarantee Scheme in Bihar," World Bank Publications - Books, The World Bank Group, number 17195, December.
    22. repec:dau:papers:123456789/10091 is not listed on IDEAS
    23. Saifedean Ammous, 2015. "Economics beyond Financial Intermediation: Digital Currencies' Possibilities for Growth, Poverty Alleviation, and International Development," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 30(Fall 2015), pages 19-50.
    24. Humberto López & Luis Servén, 2015. "Too Poor to Grow," Central Banking, Analysis, and Economic Policies Book Series, in: Ricardo J. Caballero & Klaus Schmidt-Hebbel (ed.),Economic Policies in Emerging-Market Economies Festschrift in Honor of Vittorio Corbo, edition 1, volume 21, chapter 13, pages 309-350, Central Bank of Chile.
    25. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, July.
    26. Armando Barrientos, 2013. "Social Assistance in Developing Countries," One Pager 222, International Policy Centre for Inclusive Growth.
    27. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    28. Thomas Paine, 2004. "Agrarian Justice (1797)," Palgrave Macmillan Books, in: John Cunliffe & Guido Erreygers (ed.), The Origins of Universal Grants, chapter 1, pages 3-16, Palgrave Macmillan.
    29. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    30. Jolliffe, Dean & Prydz, Espen Beer, 2015. "Global Poverty Goals and Prices: How Purchasing Power Parity Matters," IZA Discussion Papers 9064, Institute of Labor Economics (IZA).
    31. Martin Ravallion & Shaohua Chen, 2013. "A Proposal for Truly Global Poverty Measures," Global Policy, London School of Economics and Political Science, vol. 4(3), pages 258-265, September.
    32. Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6, National Bureau of Economic Research, Inc.
    33. Barrientos,Armando, 2013. "Social Assistance in Developing Countries," Cambridge Books, Cambridge University Press, number 9781107039025, November.
    34. Hammond, Peter J, 1976. "Equity, Arrow's Conditions, and Rawls' Difference Principle," Econometrica, Econometric Society, vol. 44(4), pages 793-804, July.
    35. Philip A. Michelbach & John T. Scott & Richard E. Matland & Brian H. Bornstein, 2003. "Doing Rawls Justice: An Experimental Study of Income Distribution Norms," American Journal of Political Science, John Wiley & Sons, vol. 47(3), pages 523-539, July.
    36. repec:dau:papers:123456789/10096 is not listed on IDEAS
    37. Lindgren, Mattias, 2015. "The elusive quest for the subsistence line How much does the cost of survival vary between populations?," MPRA Paper 73891, University Library of Munich, Germany.
    38. Ravallion, Martin, 1995. "Growth and poverty: Evidence for developing countries in the 1980s," Economics Letters, Elsevier, vol. 48(3-4), pages 411-417, June.
    39. Michael Cichon & Krzysztof Hagemejer, 2007. "Changing the development policy paradigm: Investing in Social security floor for all," International Social Security Review, John Wiley & Sons, vol. 60(2‐3), pages 169-196, April.
    40. Blackorby, Charles & Donaldson, David, 1984. "Social criteria for evaluating population change," Journal of Public Economics, Elsevier, vol. 25(1-2), pages 13-33, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Les plus pauvres ont-ils été laissés à la traîne ?
      by ? in D'un champ l'autre on 2015-01-13 00:27:00

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nora Lustig & Jacques Silber, 2016. "Introduction to the Special Issue on Global Poverty Lines," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(2), pages 129-140, June.
    2. Abdulaleem Isiaka & Alexander Mihailov & Giovanni Razzi, 2022. "Reallocating Government Spending to Reduce Income Inequality: Panel Data Evidence from the Middle-Income Countries," Economics Discussion Papers em-dp2022-08, Department of Economics, University of Reading.
    3. Dean Jolliffe & Grazia Pittau & John Gibson, 2022. "Editors' Introduction," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(S2), pages 261-263, December.
    4. Martin Ravallion, 2020. "Book review of Measuring Poverty around the World," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(1), pages 131-136, March.
    5. Duarte, Rosa & Espinosa-Gracia, Adrián & Jiménez, Sofía & Sánchez-Chóliz, Julio, 2022. "New insights on the relationship between the involvement of countries in global value chains, and intra- and inter-country inequalities," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 320-329.
    6. Rory Horner & David Hulme, 2019. "From International to Global Development: New Geographies of 21st Century Development," Development and Change, International Institute of Social Studies, vol. 50(2), pages 347-378, March.
    7. Margitic, Juan & Ravallion, Martin, 2019. "Lifting the floor? Economic development, social protection and the developing World's poorest," Journal of Development Economics, Elsevier, vol. 139(C), pages 97-108.
    8. Ravallion, Martin, 2019. "Guaranteed employment or guaranteed income?," World Development, Elsevier, vol. 115(C), pages 209-221.
    9. Robert C. Allen, 2017. "Absolute Poverty: When Necessity Displaces Desire," American Economic Review, American Economic Association, vol. 107(12), pages 3690-3721, December.
    10. Dean Jolliffe & Juan Margitic & Martin Ravallion, 2019. "Food Stamps and America’s Poorest," NBER Working Papers 26025, National Bureau of Economic Research, Inc.
    11. Rory Horner & David Hulme, 2017. "Converging divergence? Unpacking the new geography of 21st century global development," Global Development Institute Working Paper Series 102017, GDI, The University of Manchester.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Humberto López & Luis Servén, 2015. "Too Poor to Grow," Central Banking, Analysis, and Economic Policies Book Series, in: Ricardo J. Caballero & Klaus Schmidt-Hebbel (ed.),Economic Policies in Emerging-Market Economies Festschrift in Honor of Vittorio Corbo, edition 1, volume 21, chapter 13, pages 309-350, Central Bank of Chile.
    2. Martin Ravallion, 2016. "Toward better global poverty measures," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(2), pages 227-248, June.
    3. Martin Ravallion, 2012. "Why Don't We See Poverty Convergence?," American Economic Review, American Economic Association, vol. 102(1), pages 504-523, February.
    4. Martin Ravallion, 2020. "On Measuring Global Poverty," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 167-188, August.
    5. Martin Ravallion, 2013. "The Idea of Antipoverty Policy," NBER Working Papers 19210, National Bureau of Economic Research, Inc.
    6. Margitic, Juan & Ravallion, Martin, 2019. "Lifting the floor? Economic development, social protection and the developing World's poorest," Journal of Development Economics, Elsevier, vol. 139(C), pages 97-108.
    7. Meysonnat, Aline & Muysken, Joan & Zon, Adriaan van, 2015. "Poverty traps: the neglected role of vitality," MERIT Working Papers 2015-052, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Sean Higgins & Nora Lustig, 2015. "Can Poverty-Reducing and Progressive Tax and Transfer System Hurt the Poor?," Commitment to Equity (CEQ) Working Paper Series 1333, Tulane University, Department of Economics.
    9. Higgins, Sean & Lustig, Nora, 2016. "Can a poverty-reducing and progressive tax and transfer system hurt the poor?," Journal of Development Economics, Elsevier, vol. 122(C), pages 63-75.
    10. Facundo Alvaredo & Leonardo Gasparini, 2013. "Recent Trends in Inequality and Poverty in Developing Countries," CEDLAS, Working Papers 0151, CEDLAS, Universidad Nacional de La Plata.
    11. Luis F. López-Calva & Eduardo Ortiz-Juarez & Carlos Rodríguez-Castelán, 2022. "Within-country poverty convergence: evidence from Mexico," Empirical Economics, Springer, vol. 62(5), pages 2547-2586, May.
    12. Bao, Yanxi & Liao, Tingxuan, 2024. "Multidimensional poverty and growth: Evidence from India 1998–2021," Economic Modelling, Elsevier, vol. 130(C).
    13. Vincenzo Lombardo, 2008. "Poor's behaviour and inequality traps: the role of human capital," Working Papers 10_2008, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
    14. Gaurav Datt & Martin Ravallion & Rinku Murgai, 2020. "Poverty and Growth in India over Six Decades," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 4-27, January.
    15. Ravallion, Martin, 2010. "The Developing World's Bulging (but Vulnerable) Middle Class," World Development, Elsevier, vol. 38(4), pages 445-454, April.
    16. Jalan, Jyotsna & Ravallion, Martin, 2001. "Household income dynamics in rural China," Policy Research Working Paper Series 2706, The World Bank.
    17. L. ALAN WINTERS & NEIL McCULLOCH & ANDREW McKAY, 2015. "Trade Liberalization and Poverty: The Evidence So Far," World Scientific Book Chapters, in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 14, pages 271-314, World Scientific Publishing Co. Pte. Ltd..
    18. Dörffel, Christoph & Freytag, Andreas, 2023. "The poverty effect of democratization," World Development, Elsevier, vol. 165(C).
    19. Daniele Malerba, 2018. "How to reduce poverty and address climate change? An empirical cross-country analysis and the roles of economic growth and inequality," Global Development Institute Working Paper Series 322018, GDI, The University of Manchester.
    20. cyrine hannafi & Christophe Muller, 2016. "The Poverty-Economic Growth-Health Triangle," EcoMod2016 9587, EcoMod.

    More about this item

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:20791. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.