Tuesday, August 26, 2014
Tweet[IWS] World Bank: UNDERSTANDING CHANGES IN POVERTY [12 August 2014]
IWS Documented News Service
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Institute for Workplace Studies-----------------Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor--------------------Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
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World Bank
UNDERSTANDING CHANGES IN POVERTY [12 August 2014]
by Inchauste, Gabriela; Azevedo, João Pedro; Essama-Nssah, B.; Olivieri, Sergio;
Van Nguyen, Trang; Saavedra-Chanduvi, Jaime; Winkler, Hernan
https://openknowledge.worldbank.org/handle/10986/19445
or
[full-text, 191 pages]
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 povertyreduction. 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.
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