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Consumption Poverty and Pro-Poor Growth in Bolivia

Author

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  • Marta Moratti

    () (Department of Economics, University of Sussex)

Abstract

Using seven Bolivian household surveys conducted between 1999 and 2007, this paper provides a different picture of poverty dynamics in Bolivia. Consistent and accurate estimates of consumption are computed and used to create poverty profiles. Challenging the previous income-based poverty trend, it emerges that Bolivia experiences a very large poverty reduction from 2002 onwards, halving poverty headcount during the period of 2002- 2007. Growth incidence curves are also used to investigate the pro-poor component of the large welfare improvement. It shows that the poorest quintiles of the population, mostly represented by indigenous households, did benefit more than the rest of the population. The results suggest that Bolivian pro-poor growth significantly contributed to narrow the welfare inequality between indigenous and non-indigenous groups.

Suggested Citation

  • Marta Moratti, 2010. "Consumption Poverty and Pro-Poor Growth in Bolivia," Working Paper Series 1310, Department of Economics, University of Sussex.
  • Handle: RePEc:sus:susewp:1310
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    File URL: http://www.sussex.ac.uk/economics/documents/wps13-2010-moratti/pdf
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    References listed on IDEAS

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    1. Barja Daza, Gover & Monterrey Arce, Javier & Villarroel Böhrt, Sergio, 2006. "Bolivia: Impact of shocks and poverty policy on household welfare," Revista Latinoamericana de Desarrollo Economico, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana, issue 6, pages 63-123, Abril.
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    7. Bruce D. Meyer & James X. Sullivan, 2009. "Five Decades of Consumption and Income Poverty," NBER Working Papers 14827, National Bureau of Economic Research, Inc.
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    17. repec:wbp:wbpubs:9780821347546 is not listed on IDEAS
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    Cited by:

    1. Stephan Klasen & Simon Lange, 2015. "Targeting Performance and Poverty Effects of Proxy Means-Tested Transfers: Trade-offs and Challenges," Ibero America Institute for Econ. Research (IAI) Discussion Papers 231, Ibero-America Institute for Economic Research.
    2. Stephan Klasen & Simon Lange, 2015. "Accuracy and Poverty Impacts of Proxy Means-Tested Transfers: An Empirical Assessment for Bolivia," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 164, Courant Research Centre PEG.

    More about this item

    Keywords

    consumption poverty; pro-poor growth; Bolivia;

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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