Is Labor Income Responsible for Poverty Reduction? A Decomposition Approach

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dc.creatorAzevedo, Joao Pedro
dc.creatorInchauste, Gabriela
dc.creatorOlivieri, Sergio
dc.creatorSaavedra, Jaime
dc.creatorWinkler, Hernan
dc.date2013-09-04T14:59:02Z
dc.date2013-09-04T14:59:02Z
dc.date2013-04
dc.date.accessioned2026-07-01T00:59:26Z
dc.descriptionDemographics, labor income, public transfers, or remittances: Which factor contributes the most to observed reductions in poverty? Using counterfactual simulations, this paper accounts for the contribution labor income has made to the observed changes in poverty over the past decade for a set of 16 countries that have experienced substantial declines in poverty. In contrast to methods that focus on aggregate summary statistics, the analysis generates entire counterfactual distributions that allow assessing the contributions of different factors to observed distributional changes. Decompositions across all possible paths are calculated so the estimates are not subject to path-dependence. The analysis shows that for most countries in the sample, labor income is the most important contributor to changes in poverty. In ten of the countries, labor income explains more than half of the change in moderate poverty; in another four, it accounts for more than 40 percent of the reduction in poverty. Although public and private transfers were relatively more important in explaining the reduction in extreme poverty, more and better-paying jobs were the key factors behind poverty reduction over the past decade.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/2013/04/17599289/labor-income-responsible-poverty-reduction-decomposition-approach
dc.identifierhttps://hdl.handle.net/10986/15552
dc.identifierhttps://doi.org/10.1596/1813-9450-6414
dc.identifier.urihttp://hdl.handle.net/123456789/413946
dc.languageEnglish
dc.languageen_US
dc.publisherWorld Bank, Washington, DC
dc.relationPolicy Research Working Paper;No. 6414
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo/
dc.rightsWorld Bank
dc.subjectCASH TRANSFER PROGRAMS
dc.subjectCASH TRANSFERS
dc.subjectCHANGES IN POVERTY
dc.subjectCONSUMPTION AGGREGATE
dc.subjectCONSUMPTION EXPENDITURES
dc.subjectCOUNTERFACTUAL
dc.subjectDECLINE IN POVERTY
dc.subjectDECOMPOSABLE POVERTY
dc.subjectDECOMPOSITION METHODOLOGY
dc.subjectDECOMPOSITION TECHNIQUES
dc.subjectECONOMIC GROWTH
dc.subjectEMPLOYMENT OF WOMEN
dc.subjectEXTREME POVERTY
dc.subjectFAMILY INCOME
dc.subjectFAMILY MEMBERS
dc.subjectHOUSEHOLD CONSUMPTION
dc.subjectHOUSEHOLD CONSUMPTION PER CAPITA
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLD PER CAPITA INCOME
dc.subjectHOUSEHOLD SURVEY
dc.subjectHOUSEHOLD SURVEYS
dc.subjectINCOME
dc.subjectINCOME DISTRIBUTION
dc.subjectINCOME DYNAMICS
dc.subjectINCOME GROWTH
dc.subjectINCOME INEQUALITY
dc.subjectINEQUALITY
dc.subjectINTERNATIONAL POVERTY LINE
dc.subjectINTERNATIONAL POVERTY LINES
dc.subjectNUTRITION
dc.subjectPER CAPITA CONSUMPTION
dc.subjectPOLITICAL ECONOMY
dc.subjectPOOR
dc.subjectPOVERTY ACROSS COUNTRIES
dc.subjectPOVERTY DYNAMICS
dc.subjectPOVERTY GAP
dc.subjectPOVERTY GAP INDEX
dc.subjectPOVERTY HEADCOUNT RATE
dc.subjectPOVERTY HEADCOUNT RATES
dc.subjectPOVERTY INCIDENCE
dc.subjectPOVERTY MEASURES
dc.subjectPOVERTY OUTCOMES
dc.subjectPOVERTY RATE
dc.subjectPOVERTY RATES
dc.subjectPOVERTY REDUCTION
dc.subjectPOVERTY SEVERITY
dc.subjectPRIVATE TRANSFERS
dc.subjectREDUCTION IN POVERTY
dc.subjectREGIONAL POVERTY
dc.subjectRURAL
dc.subjectRURAL INCOME
dc.subjectSAVINGS
dc.subjectSOCIAL POLICIES
dc.subjectSOCIAL PROTECTION
dc.subjectTOTAL POVERTY
dc.subjectTRANSFER PROGRAMS
dc.subjectWELFARE MEASURE
dc.titleIs Labor Income Responsible for Poverty Reduction? A Decomposition Approach

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