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A note on the simple algebra of the shared prosperity indicator

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  • Rosenblatt, David
  • McGavock, Tamara J.

Abstract

One of the two goals of the World Bank Group's new strategy is to promote shared prosperity, defined as the income growth of the bottom 40 percent of the population. The simple monitoring indicator then is the income per capita of the bottom 40 percent of the population. The growth of this indicator can be decomposed into two components: the change in the share of total income accruing to the bottom 40 percent and the growth of the average income of the total population. This paper presents: (i) a brief discussion of the properties of the indicator; (ii) the simple decomposition in algebraic form; (iii) a graphical method for displaying the combinations of the two components of the decomposition; (iv) simulations of the decomposition for hypothetical countries; and (v) some illustrative data.

Suggested Citation

  • Rosenblatt, David & McGavock, Tamara J., 2013. "A note on the simple algebra of the shared prosperity indicator," Policy Research Working Paper Series 6645, The World Bank.
    • Handle: RePEc:wbk:wbrwps:6645
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    References listed on IDEAS

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    Cited by:

    1. Ferreira, Francisco H. G. & Galasso, Emanuela & Negre, Mario, 2018. "Shared Prosperity: Concepts, Data, and Some Policy Examples," IZA Discussion Papers 11571, Institute of Labor Economics (IZA).
    2. Onder, Harun, 2013. "Reaching the Bottom 40 Percent: Do National Goals Translate Subnationally?," World Bank - Economic Premise, The World Bank, issue 130, pages 1-4, November.
    3. Nanak Kakwani & Xiaobing Wang & Ning Xue & Peng Zhan, 2022. "Growth and Common Prosperity in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(1), pages 28-57, January.
    4. Fabio Monteiro Vaz & Marcelo Neri & Nanak Kakwani, 2016. "Growth And Shared Prosperity In Brazil," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 212, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    5. Narayan,Ambar & Murgai,Rinku, 2016. "Looking back on two decades of poverty and well-being in India," Policy Research Working Paper Series 7626, The World Bank.
    6. S. Subramanian, 2019. "Some Logical and Normative Issues Relating to Measurement in the Social Sciences," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(4), pages 937-948, December.
    7. Lakner,Christoph & Negre Rossignoli,Mario & Prydz,Espen Beer & Lakner,Christoph & Negre Rossignoli,Mario & Prydz,Espen Beer, 2014. "Twinning the goals : how can promoting shared prosperity help to reduce global poverty ?," Policy Research Working Paper Series 7106, The World Bank.
    8. Basu, Kaushik, 2013. "Shared prosperity and the mitigation of poverty : in practice and in precept," Policy Research Working Paper Series 6700, The World Bank.

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