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Microdeterminants of consumption, poverty, growth, and inequality in Bangladesh

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  • Wodon, Quentin T.

Abstract

Using household data from five successive national surveys, the author analyzes the microdeterminants of (and changes in) consumption, poverty, growth, and inequality in Bangladesh from 1983 to 1996. Education, demographics, land ownership, occupation, and geographic location all affect consumption and poverty. The gains in per capita consumption associated with many of these household characteristics tend to be stable over time. Returns to demographics (variables in household size) have the greatest impact on growth, perhaps because of improving employment opportunities for women. Education (in urban areas) and land (in rural areas) contribute most to measures of between-group inequality. Location takes second place, in both urban and rural areas. The author introduces the concept of conditional between-group inequality. Existing group decompositions of the Gini index along one variable do not control for other characteristics correlated with that variable. Conditional between-group Ginis avoid this pitfall. He also shows how to use unconditional and conditional between-group Ginis for simulating policies.

Suggested Citation

  • Wodon, Quentin T., 1999. "Microdeterminants of consumption, poverty, growth, and inequality in Bangladesh," Policy Research Working Paper Series 2076, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2076
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    References listed on IDEAS

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    1. Yitzhaki, Shlomo & Lerman, Robert I, 1991. "Income Stratification and Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(3), pages 313-329, September.
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    3. Ravallion, Martin & Sen, Binayak, 1994. "When method matters : toward a resolution of the debate about Bangladesh's poverty measures," Policy Research Working Paper Series 1359, The World Bank.
    4. Wodon, Quentin T, 1999. "Between Group Inequality and Targeted Transfers," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 45(1), pages 21-39, March.
    5. Ravallion, Martin & Wodon, Quentin, 1997. "Poor areas, or only poor people?," Policy Research Working Paper Series 1798, The World Bank.
    6. Lerman, Robert I. & Yitzhaki, Shlomo, 1984. "A note on the calculation and interpretation of the Gini index," Economics Letters, Elsevier, vol. 15(3-4), pages 363-368.
    7. Quentin Wodon, 1997. "Food energy intake and cost of basic needs: Measuring poverty in Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 34(2), pages 66-101.
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    Cited by:

    1. Fiona Tregenna, 2012. "What are the distributional implications of halving poverty in South Africa when growth alone is not enough?," Applied Economics, Taylor & Francis Journals, vol. 44(20), pages 2577-2596, July.
    2. Awulachew, Seleshi Bekele & Erkossa, Teklu & Balcha, Yodit, 2008. "2nd Forum on Irrigation and water for sustainable development: 15 –16 December, 2008 Ghion Hotel, Addis Ababa, Ethiopia," IWMI Conference Proceedings 118411, International Water Management Institute.
    3. Arsenio M Balisacan, 2004. "Averting Hunger and Food Insecurity in Asia," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 1(1), pages 39-60, June.
    4. Suleiman Abu-Bader & Daniel Gottlieb, 2009. "Poverty, education and employment in the Arab-Bedouin society: A comparative view," Working Papers 137, ECINEQ, Society for the Study of Economic Inequality.
    5. Imran Sharif Chaudhry & Shahnawaz Malik & Abo ul Hassan, 2009. "The Impact of Socioeconomic and Demographic Variables on Poverty: A Village Study," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 14(1), pages 39-68, Jan-Jun.
    6. repec:ilo:ilowps:413417 is not listed on IDEAS
    7. Coudouel, Aline & Hentschel, Jesko & Wodon, Quentin, 2002. "Medición y análisis de la pobreza
      [Poverty Measurement and Analysis]
      ," MPRA Paper 10491, University Library of Munich, Germany.
    8. Jean-Pierre Lachaud, 2005. "Crise ivoirienne, envois de fonds et pauvreté au Burkina Faso," Revue Tiers-Monde, Armand Colin, pages 651-673.
    9. Jagannadha Tamvada, 2010. "Entrepreneurship and welfare," Small Business Economics, Springer, vol. 34(1), pages 65-79, January.
    10. Hagos, Fitsum & Jayasinghe, Gayathree & Awulachew, Seleshi Bekele & Loulseged, Makonnen & Yilma, Aster Denekew, 2011. "Poverty impacts of agricultural water management technologies in Ethiopia," Conference Papers h044263, International Water Management Institute.
    11. Coudouel, Aline & Hentschel, Jesko & Wodon, Quentin, 2002. "Измерение И Анализ Бедности
      [Poverty Measurement and Analysis]
      ," MPRA Paper 10492, University Library of Munich, Germany.
    12. Hagos, Fitsum & Jayasinghe, Gayathree & Awulachew, Seleshi Bekele & Loulseged, Makonnen & Yilma, Aster Denekew, 2011. "Poverty impacts of agricultural water management technologies in Ethiopia," IWMI Conference Proceedings 210891, International Water Management Institute.
    13. Christiaensen, Luc & Scott, Christopher & Wodon, Quentin, 2002. "Poverty Measurement and Analysis," MPRA Paper 45362, University Library of Munich, Germany.
    14. Islam, S.M.A, 2009. "Inequality and economic growth in Bangladesh–a diversified evidence on Kuznets pattern `U` hypothesis," Journal of the Bangladesh Agricultural University, Bangladesh Agricultural University Research System (BAURES), vol. 7.
    15. סלימאן אבו-בדר ודר' דניאל גוטליב, 2009. "עוני, חינוך ותעסוקה בחברה הערבית-בדואית: מבט השוואתי (באנגלית)," Working Papers 357, National Insurance Institute of Israel.
    16. Tregenna, Fiona, 2011. "Halving Poverty in South Africa: Growth and Distributional Aspects," WIDER Working Paper Series 060, World Institute for Development Economic Research (UNU-WIDER).
    17. Kapsos, Steven., 2008. "The gender wage gap in Bangladesh," ILO Working Papers 994134173402676, International Labour Organization.
    18. Jean-Pierre Lachaud, 2007. "La dynamique de pauvreté provinciale et le marché du travail à Madagascar. Une analyse fondée sur une décomposition de régression," Documents de travail 136, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
    19. Coudouel, Aline & Hentschel, Jesko & Wodon, Quentin, 2002. "Mesure et analyse de la pauvreté
      [Poverty Measurement and Analysis]
      ," MPRA Paper 10490, University Library of Munich, Germany.
    20. Hagos, Fitsum & Jayasinghe, Gayathri & Awulachew, Seleshi Bekele & Loulseged, Makonnen & Denekew, Aster, 2008. "Poverty impacts of agricultural water management technologies in Ethiopia," Conference Papers h041695, International Water Management Institute.
    21. Glewwe, Paul & Gragnolatti, Michele & Zaman, Hassan, 2000. "Who gained from Vietnam's boom in the 1990s? An analysis of poverty and inequality trends," Policy Research Working Paper Series 2275, The World Bank.
    22. Islam, S.M.A, 2008. "Financial repression and economic distortions to the stage of economic growth and agricultural development in Bangladesh," Journal of the Bangladesh Agricultural University, Bangladesh Agricultural University Research System (BAURES), vol. 6.
    23. Jean-Pierre Lachaud, 2003. "Les déterminants de l'inégalité du bien-être au Burkina Faso : une décomposition de régression," Documents de travail 85, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.

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