IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Shared prosperity : links to growth, inequality and inequality of opportunity

  • Narayan, Ambar
  • Saavedra-Chanduvi, Jaime
  • Tiwari, Sailesh

Focusing on the welfare of the less well off as a measure of real societal progress is the fundamental principle underlying the WBG indicator of"shared prosperity", namely income growth of the bottom 40 percent in every country. This paper uses a database assembled by the World Bank Group to investigate some basic characteristics of shared prosperity, particularly its relationship with overall economic growth and inequality. Initial estimates using this dataset of 79 countries show that median income growth of the bottom 40 percent (circa 2005-2010) was 4.2 percent, a high number in comparison to the 3.1 percent per capita income growth of the overall population. In addition, the low and lower-middle income countries appear to be trailing the upper middle and high income countries in boosting shared prosperity. Establishing conceptual links between income growth of the bottom 40 percent, the overall growth rate and reviewing existing evidence on how these relate to inequality, the paper discusses two main ideas. First, shared prosperity is strongly correlated with overall prosperity implying that the whole host of policies that are important to generate and sustain growth remain relevant. Second, boosting shared prosperity will also require a concerted effort to strengthen the social contract, particularly in the area of promoting equality of opportunity. Growing evidence suggests that improving access for all and reducing inequality of opportunities -- particularly those related to human capital development of children -- are not only about"fairness"and building a"just society", but also about realizing a society's aspirations of economic prosperity.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2013/10/10/000158349_20131010095409/Rendered/PDF/WPS6649.pdf
Download Restriction: no

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6649.

as
in new window

Length:
Date of creation: 01 Oct 2013
Date of revision:
Handle: RePEc:wbk:wbrwps:6649
Contact details of provider: Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Janet Currie & Duncan Thomas, 1996. "Does Head Start Help Hispanic Children?," NBER Working Papers 5805, National Bureau of Economic Research, Inc.
  2. Benjamin, Dwayne & Brandt, Loren & Giles, John, 2010. "Did higher inequality impede growth in rural China ?," Policy Research Working Paper Series 5483, The World Bank.
  3. Easterly, William, 2007. "Inequality does cause underdevelopment: Insights from a new instrument," Journal of Development Economics, Elsevier, vol. 84(2), pages 755-776, November.
  4. Inchauste, Gabriela & Azevedo, João Pedro & Olivieri, Sergio & Saavedra, Jaime & Winkler, Hernan, 2012. "When Job Earnings Are behind Poverty Reduction," World Bank - Economic Premise, The World Bank, issue 97, pages 1-6, November.
  5. Harold Alderman & John Hoddinott & Bill Kinsey, 2004. "Long Term Consequences Of Early Childhood Malnutrition," HiCN Working Papers 09, Households in Conflict Network.
  6. Gustavo A. Marrero & Juan G. Rodríguez, 2010. "Inequality of opportunity and growth," Working Papers 154, ECINEQ, Society for the Study of Economic Inequality.
  7. Sarah Voitchovsky, 2005. "Does the Profile of Income Inequality Matter for Economic Growth?," Journal of Economic Growth, Springer, vol. 10(3), pages 273-296, 09.
  8. Ferreira , Francisco H. G. & Gignoux, Jeremie, 2008. "The measurement of inequality of opportunity : theory and an application to Latin America," Policy Research Working Paper Series 4659, The World Bank.
  9. Chetty, Raj & Friedman, John Norton & Hilger, Nathanial & Saez, Emmanuel & Schanzenbach, Dianne Whitmore & Yagan, Danny, 2011. "How Does Your Kindergarten Classroom Affect Your Earnings? Evidence from Project Star," Scholarly Articles 9639983, Harvard Kennedy School of Government.
  10. Berg, Andrew & Ostry, Jonathan D. & Zettelmeyer, Jeromin, 2012. "What makes growth sustained?," Journal of Development Economics, Elsevier, vol. 98(2), pages 149-166.
  11. Michael Grimm, 2011. "Does inequality in health impede economic growth?," Oxford Economic Papers, Oxford University Press, vol. 63(3), pages 448-474, July.
  12. Alesina, Alberto F & Rodrik, Dani, 1991. "Distributive Politics and Economic Growth," CEPR Discussion Papers 565, C.E.P.R. Discussion Papers.
  13. Francisco Ferreira & Jérémie Gignoux & Meltem Aran, 2011. "Measuring inequality of opportunity with imperfect data: the case of Turkey," Journal of Economic Inequality, Springer, vol. 9(4), pages 651-680, December.
  14. Azevedo, Joao Pedro & Inchauste, Gabriela & Olivieri, Sergio & Saavedra, Jaime & Winkler, Hernan, 2013. "Is labor income responsible for poverty reduction ? a decomposition approach," Policy Research Working Paper Series 6414, The World Bank.
  15. Sen, Amartya, 2001. "Development as Freedom," OUP Catalogue, Oxford University Press, number 9780192893307, March.
  16. Loayza, Norman V. & Raddatz, Claudio, 2006. "The composition of growth matters for poverty alleviation," Policy Research Working Paper Series 4077, The World Bank.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:6649. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.