Understanding Changes in Poverty
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World Bank Group, Washington, DC
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Understanding Changes in Poverty brings
together different methods to decompose the contributions to
poverty reduction. A simple approach quantifies the
contribution of changes in demographics, employment,
earnings, public transfers, and remittances to poverty
reduction. A more complex approach quantifies the
contributions to poverty reduction from changes in
individual and household characteristics, including changes
in the sectoral, occupational, and educational structure of
the workforce, as well as changes in the returns to
individual and household characteristics. Understanding
Changes in Poverty implements these approaches and finds
that labor income growth that is, growth in income per
worker rather than an increase in the number of employed
workers was the largest contributor to moderate poverty
reduction in 21 countries experiencing substantial
reductions in poverty over the past decade. Changes in
demographics, public transfers, and remittances helped, but
made relatively smaller contributions to poverty reduction.
Further decompositions in three countries find that labor
income grew mainly because of higher returns to human
capital endowments, signaling increases in productivity,
higher relative price of labor, or both. Understanding
Changes in Poverty will be of particular relevance to
development practitioners interested in better understanding
distributional changes over time. The methods and tools
presented in this book can also be applied to better
understand changes in inequality or any other distributional change.
Palabras clave
AGGREGATE POVERTY, AGRICULTURAL WORKERS, AVERAGE INCOME, AVERAGE WAGES, CASH TRANSFERS, CHANGES IN POVERTY, CONSUMPTION AGGREGATE, CONSUMPTION EXPENDITURE, CONSUMPTION PER CAPITA, CONSUMPTION POVERTY, COUNTERFACTUAL, CUMULATIVE DISTRIBUTION, CUMULATIVE DISTRIBUTION FUNCTION, DECLINE IN POVERTY, DECOMPOSABLE POVERTY, DECOMPOSABLE POVERTY MEASURES, DECOMPOSITION METHODOLOGY, DECOMPOSITION TECHNIQUES, DENSITY FUNCTION, DEVELOPING COUNTRIES, DEVELOPING WORLD, DEVELOPMENT ECONOMICS, DEVELOPMENT GOALS, DEVELOPMENT REPORT, DEVELOPMENT RESEARCH, DISTRIBUTION OF LAND, DISTRIBUTIONAL CHANGE, DISTRIBUTIONAL CHANGES, DISTRIBUTIONAL IMPACT, ECONOMIC GROWTH, ECONOMICS, EMPIRICAL REGULARITIES, ESTIMATED COEFFICIENTS, EX ANTE ANALYSIS, EXTREME POVERTY, EXTREME POVERTY LINE, FAMILY INCOME, FAMILY MEMBERS, FARM HOUSEHOLDS, FARM INCOME, FARM SECTOR, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL MARKETS, FLEXIBILITY, FOOD PRICES, FUNCTIONAL FORM, GLOBAL POVERTY, GROWTH EFFECT, GROWTH PATTERN, GROWTH PROCESS, GROWTH RATE, HOUSEHOLD CONSUMPTION, HOUSEHOLD INCOME, HOUSEHOLD INCOMES, HOUSEHOLD PER CAPITA INCOME, HOUSEHOLD SURVEYS, HUMAN CAPITAL, HUMAN CAPITAL ENDOWMENTS, IMPACT EVALUATION, IMPROVING PRODUCTIVITY, INCIDENCE ANALYSIS, INCOME DISTRIBUTION, INCOME DISTRIBUTIONS, INCOME DYNAMICS, INCOME GROWTH, INCOME INEQUALITY, INCOME REDISTRIBUTION, INCOME-GENERATING ACTIVITIES, INEQUALITY CONSTANT, INEQUALITY MEASURES, INTERVENTION, LABOR FORCE, LABOR MARKET, LIVING STANDARDS, MACROECONOMIC SHOCKS, MARGINAL EFFECT, MEAN INCOME, NATIONAL POVERTY, NATIONAL POVERTY HEADCOUNT, NUTRITION, PER CAPITA CONSUMPTION, POLICY MAKERS, POLICY RESEARCH, POLITICAL ECONOMY, POOR, POPULATION SHARE, POVERTY CHANGE, POVERTY CHANGES, POVERTY DYNAMICS, POVERTY GAP, POVERTY GAP INDEX, POVERTY HEADCOUNT RATES, POVERTY IMPACT, POVERTY IMPACTS, POVERTY LEVEL, POVERTY LEVELS, POVERTY LINE, POVERTY LINES, POVERTY MEASURE, POVERTY MEASUREMENT, POVERTY MEASURES, POVERTY OUTCOMES, POVERTY RATE, POVERTY RATES, POVERTY REDUCTION, POVERTY REDUCTION TARGETS, POVERTY SEVERITY, PRIVATE TRANSFERS, PRO-POOR, PRO-POOR GROWTH, PROGRAM EVALUATION, PUBLIC EXPENDITURE, PUBLIC POLICY, QUALITY OF PUBLIC SERVICES, REDUCING POVERTY, REDUCTION IN POVERTY, REGIONAL COMPOSITION, RELATIVE IMPORTANCE, RELATIVE INEQUALITY, RURAL INCOME, SAFETY NET, SAFETY NET PROGRAMS, SAVINGS, SECTORAL COMPOSITION, SOCIAL POLICIES, SOCIAL PROTECTION, TRANSFER PROGRAMS, UNDERSTANDING OF POVERTY, WAGE DIFFERENTIALS, WELFARE INDICATOR, WELFARE MEASURE