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Household welfare and poverty dynamics in Burkina Faso : empirical evidence from household surveys

  • Fofack, Hippolyte
  • Monga, Celestin
  • Tuluy, Hasan
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    The authors investigate the dynamics of poverty and income inequality in a cross-section of socio-economic groups and geographical regions over the five-year growth period following the 1994 devaluation of the CFA franc in Burkina Faso. Results show rapidly increasing urban poverty accompanied by rising income inequality, declining poverty -growth elasticities, and significant changes in the poverty map. In rural areas, the incidence of poverty remained the same and income inequality did not increase. In contrast, the distribution of welfare across socio-economic groups was more stable. The rank ordering of socioeconomic groups on the welfare scale did not change during the post-devaluation growth period. Poverty remains largely a rural phenomenon, whose inelastic nature may justify a shift toward growth-oriented policies that at least maintain the rural poor's share of income to reduce poverty in the medium term. Among factors that feed into income inequality: disparities in wages and in educational attainment and unequal access to productive assets (especially human capital).

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    Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2590.

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    Date of creation: 30 Apr 2001
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    Handle: RePEc:wbk:wbrwps:2590
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    1. Lars Osberg, 1998. "Economic Insecurity," Discussion Papers 0088, University of New South Wales, Social Policy Research Centre.
    2. Leibbrandt, M.V. & Woolard, C.D. & Woolard, I.D., 1996. "The Contribution of Income Components to Income Inequality in South Africa. A Decomposable Gini Analysis," Papers 125a, World Bank - Living Standards Measurement.
    3. Kakwani, N., 1990. "Poverty And Economic Growth; With Application To Cote D'Ivoire," Papers 90-2, New South Wales - School of Economics.
    4. Birdsall, Nancy & Ross, David & Sabot, Richard, 1995. "Inequality and Growth Reconsidered: Lessons from East Asia," World Bank Economic Review, World Bank Group, vol. 9(3), pages 477-508, September.
    5. Behrman, Jere R & Knowles, James C, 1999. "Household Income and Child Schooling in Vietnam," World Bank Economic Review, World Bank Group, vol. 13(2), pages 211-56, May.
    6. Kakwani, N., 1990. "Poverty And Economic Growth: With Application To Cote D'Ivoire," Papers 63, World Bank - Living Standards Measurement.
    7. Ravallion, M., 1992. "Poverty Comparisons - A Guide to Concepts and Methods," Papers 88, World Bank - Living Standards Measurement.
    8. Fofack, Hippolyte, 2000. "Combining Light Monitoring Surveys with Integrated Surveys to Improve Targeting for Poverty Reduction: The Case of Ghana," World Bank Economic Review, World Bank Group, vol. 14(1), pages 195-219, January.
    9. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
    10. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July.
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