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May growth lead to higher deprivation despite higher satisfaction ?

Author

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  • Wodon, Quentin
  • Yitzhaki, Shlomo

Abstract

In a relative deprivation framework, unless inequality is reduced, growth is associated with both higher satisfaction and higher deprivation. This may help explain the discontent with growth despite its benefits. As is well known in the literature, knowledge of the population's mean income and Lorenz curve is all that is needed to analyze a distribution, so that this can also be used to assess the satisfaction and deprivation of each individual. Given the normalization used to derive the satisfaction and deprivation measures, satisfaction and deprivation add up to the mean income for the population as a whole as well as for each individual.

Suggested Citation

  • Wodon, Quentin & Yitzhaki, Shlomo, 2009. "May growth lead to higher deprivation despite higher satisfaction ?," Policy Research Working Paper Series 4921, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4921
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    Cited by:

    1. Umar Serajuddin & Paolo Verme, 2015. "Who is Deprived? Who Feels Deprived? Labor Deprivation, Youth, and Gender in Morocco," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(1), pages 140-163, March.

    More about this item

    Keywords

    Economic Theory&Research; Inequality; Poverty Impact Evaluation; Labor Policies;

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