The Composition of Growth Matters for Poverty Alleviation

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dc.creatorLoayza, Norman V.
dc.creatorRaddatz, Claudio
dc.date2012-06-22T20:12:33Z
dc.date2012-06-22T20:12:33Z
dc.date2006-12
dc.date.accessioned2026-07-01T01:06:23Z
dc.descriptionThis paper contributes to explain the cross-country heterogeneity of the poverty response to changes in economic growth. It does so by focusing on the structure of output growth. The paper presents a two-sector theoretical model that clarifies the mechanism through which the sectoral composition of growth and associated labor intensity can affect workers' wages and, thus, poverty alleviation. Then it presents cross-country empirical evidence that analyzes first, the differential poverty-reducing impact of sectoral growth at various levels of disaggregation, and the role of unskilled labor intensity in such differential impact. The paper finds evidence that not only the size of economic growth but also its composition matters for poverty alleviation, with the largest contributions from labor-intensive sectors (such as agriculture, construction, and manufacturing). The results are robust to the influence of outliers, alternative explanations, and various poverty measures.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/2006/12/7245823/composition-growth-matters-poverty-alleviation
dc.identifierhttps://hdl.handle.net/10986/8857
dc.identifierhttps://doi.org/10.1596/1813-9450-4077
dc.identifier.urihttp://hdl.handle.net/123456789/415247
dc.languageEnglish
dc.languageen_US
dc.publisherWorld Bank, Washington, DC
dc.relationPolicy Research Working Paper; No. 4077
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo
dc.rightsWorld Bank
dc.subjectABUSE
dc.subjectAGGREGATE GROWTH
dc.subjectAGGREGATE OUTPUT
dc.subjectAGRICULTURAL GROWTH
dc.subjectCHANGES IN POVERTY
dc.subjectCOBB-DOUGLAS PRODUCTION FUNCTION
dc.subjectCONSIDERABLE DISPERSION
dc.subjectCONSTANT RETURNS
dc.subjectCOUNTRY SPECIFIC
dc.subjectDEPENDENT VARIABLE
dc.subjectDEVELOPING COUNTRIES
dc.subjectDISTRIBUTION DATA
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC CONDITIONS
dc.subjectECONOMIC GROWTH
dc.subjectELASTICITY OF SUBSTITUTION
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPIRICAL LITERATURE
dc.subjectEMPIRICAL SECTION
dc.subjectEMPLOYMENT
dc.subjectESTIMATION RESULTS
dc.subjectEXCHANGE RATE
dc.subjectEXPLANATORY VARIABLES
dc.subjectFIXED EFFECTS
dc.subjectGINI COEFFICIENT
dc.subjectGROWTH ^ RATE
dc.subjectGROWTH EFFECT
dc.subjectGROWTH ELASTICITY
dc.subjectGROWTH PATH
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectGROWTH RELATIONSHIP
dc.subjectHEADCOUNT POVERTY
dc.subjectHIGHER INEQUALITY
dc.subjectHOUSEHOLD DATA
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLD SURVEY
dc.subjectHOUSEHOLD SURVEYS
dc.subjectHUMAN CAPITAL
dc.subjectIMPACT ON POVERTY REDUCTION
dc.subjectINCIDENCE OF POVERTY
dc.subjectINCOME DISTRIBUTION
dc.subjectINCOME GROWTH
dc.subjectINCOME INEQUALITY
dc.subjectINDIVIDUAL COUNTRIES
dc.subjectINDUSTRIAL SECTOR
dc.subjectINTERMEDIATE GOODS
dc.subjectLABOR INTENSITIES
dc.subjectLABOR INTENSITY
dc.subjectLABOR MARKET
dc.subjectLABOR MARKETS
dc.subjectLABOR MOBILITY
dc.subjectLABOR REALLOCATION
dc.subjectLABOR SHARE
dc.subjectLABOR-INTENSIVE GROWTH
dc.subjectLEVEL OF TECHNOLOGY
dc.subjectLITERACY RATES
dc.subjectMEAN INCOME
dc.subjectMEAN INCOME GROWTH
dc.subjectMORTALITY
dc.subjectNATIONAL ACCOUNTS
dc.subject0 HYPOTHESIS
dc.subjectOUTPUT GROWTH
dc.subjectPOLICY CIRCLES
dc.subjectPOLICY RESEARCH
dc.subjectPOLICY RESEARCH WORKING PAPER
dc.subjectPOOR COUNTRIES
dc.subjectPOOR HOUSEHOLDS
dc.subjectPOOR INDIVIDUALS
dc.subjectPOVERTY ALLEVIATION
dc.subjectPOVERTY CHANGE
dc.subjectPOVERTY CHANGES
dc.subjectPOVERTY DATA
dc.subjectPOVERTY GAP
dc.subjectPOVERTY LEVEL
dc.subjectPOVERTY LINE
dc.subjectPOVERTY MEASURE
dc.subjectPOVERTY MEASURES
dc.subjectPOVERTY REDUCING
dc.subjectPOVERTY REDUCTION
dc.subjectPRO POOR
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTION GROWTH
dc.subjectREAL WAGE
dc.subjectREAL WAGES
dc.subjectRELATIVE PRICES
dc.subjectRESPECT
dc.subjectRURAL AREAS
dc.subjectSECTOR MODEL
dc.subjectSECTORAL COMPOSITION
dc.subjectSECTORAL GROWTH RATES
dc.subjectSERVICE SECTORS
dc.subjectSHARE OF LABOR
dc.subjectSQUARED POVERTY GAP
dc.subjectTECHNOLOGICAL PROGRESS
dc.subjectTOTAL EMPLOYMENT
dc.subjectTOTAL OUTPUT
dc.subjectUNEQUAL COUNTRIES
dc.subjectUNSKILLED LABOR
dc.subjectUNSKILLED WORKERS
dc.subjectURBANIZATION
dc.subjectUTILITY FUNCTION
dc.subjectWAGE INCREASE
dc.subjectWAGE EQUALIZATION
dc.subjectWAGE GAINS
dc.subjectWAGE GROWTH
dc.subjectWAGE RATE
dc.subjectWORKER
dc.subjectWORKERS
dc.titleThe Composition of Growth Matters for Poverty Alleviation

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