The patterns and determinants of household welfare growth in Jordan : 2002-2010
Jordan's economic growth in the past decade has translated into a significant rise in household consumption and a decline in poverty and inequality indicators. Yet, the sentiment of the overall population seems to point to worsening disparities. Using official household expenditure surveys for 2002, 2008, and 2010, this paper analyzes the patterns and determinants of household welfare growth and examines the extent to which economic growth has been inclusive of the more vulnerable groups. Using counterfactual decompositions, the paper dwells first on the dynamics observed behind the drop in poverty and inequality. It then carries out regression analysis using re-centered influence functions to examine the economic determinants of household welfare growth throughout the decade. The paper finds that welfare growth as opposed to welfare distribution was the main driver behind poverty reduction, and that the drop in inequality was primarily driven by a regional catching-up effect. In addition, the analysis identifies rent, access to human capital services, and more importantly employment in the services sector and the public sector as the major determinants of welfare growth in Jordan. Public hiring in particular was used extensively as a tool for poverty alleviation, especially for residents outside the capital.
|Date of creation:||01 Oct 2012|
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- François Bourguignon & Francisco Ferreira & Phillippe Leite, 2008.
"Beyond Oaxaca–Blinder: Accounting for differences in household income distributions,"
The Journal of Economic Inequality,
Springer;Society for the Study of Economic Inequality, vol. 6(2), pages 117-148, June.
- François Bourguignon & Ferreira Francisco H. G. & Philippe G. Leite, 2008. "Beyond Oaxaca-Blinder: Accounting for differences in household income distributions," Post-Print halshs-00754283, HAL.
- Fortin, Nicole & Lemieux, Thomas & Firpo, Sergio, 2011. "Decomposition Methods in Economics," Handbook of Labor Economics, Elsevier.
- Nicole Fortin & Thomas Lemieux & Sergio Firpo, 2010. "Decomposition Methods in Economics," NBER Working Papers 16045, National Bureau of Economic Research, Inc.
- Essama-Nssah, B. & Bassole, Leandre, 2010. "A counterfactual analysis of the poverty impact of economic growth in Cameroon," Policy Research Working Paper Series 5249, The World Bank.
- Kolenikov, Stanislav & Shorrocks, Anthony, 2003. "A Decomposition Analysis of Regional Poverty in Russia," WIDER Working Paper Series 074, World Institute for Development Economic Research (UNU-WIDER).
- Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April. Full references (including those not matched with items on IDEAS)
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