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Distributions in motion: Economic growth, inequality, and poverty dynamics

Author

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  • Francisco Ferreira

    (The World Bank)

Abstract
The joint determination of aggregate economic growth and distributional change has been studied empirically from at least three different perspectives. A macroeconomic approach that relies on cross-country data on poverty, inequality, and growth rates has generated some interesting stylized facts about the correlations between these variables, but has not shed much light on the underlying determinants. “Meso-” and microeconomic approaches have fared somewhat better. The microeconomic approach, in particular, builds on the observation that growth, changes in poverty, and changes in inequality are simply different aggregations of information on the incidence of economic growth along the income distribution. This paper reviews the evolution of attempts to understand the nature of growth incidence curves, from the statistical decompositions associated with generalizations of the Oaxaca-Blinder method, to more recent efforts to generate “economically consistent” counterfactuals, drawing on structural, reduced-form, and computable general equilibrium models.

Suggested Citation

  • Francisco Ferreira, 2010. "Distributions in motion: Economic growth, inequality, and poverty dynamics," Working Papers 183, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2010-183
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2010-183.pdf
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    References listed on IDEAS

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    1. Distributions in motion: Economic growth, inequality, and poverty dynamics
      by maximorossi in NEP-LTV blog on 2010-10-18 21:23:39

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    Cited by:

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    2. Vanessa Hartmann & Konstantin M. Wacker, 2023. "Poverty decompositions with counterfactual income and inequality dynamics," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1746-1768, August.
    3. Vito Peragine & Flaviana Palmisano & Paolo Brunori, 2014. "Economic Growth and Equality of Opportunity," The World Bank Economic Review, World Bank, vol. 28(2), pages 247-281.
    4. Elena Bárcena-Martín & Ana I. Moro Egido, 2013. "Country differences in the gender effect on poverty in Europe," ThE Papers 13/02, Department of Economic Theory and Economic History of the University of Granada..
    5. Flaviana Palmisano & Vito Peragine, 2015. "The Distributional Incidence of Growth: A Social Welfare Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(3), pages 440-464, September.
    6. Essama-Nssah, B., 2012. "Identification of sources of variation in poverty outcomes," Policy Research Working Paper Series 5954, The World Bank.
    7. Facundo Alvaredo & Leonardo Gasparini, 2013. "Recent Trends in Inequality and Poverty in Developing Countries," CEDLAS, Working Papers 0151, CEDLAS, Universidad Nacional de La Plata.
    8. Manoel Bittencourt, 2014. "Economic Growth and Inequality: Evidence from the Young Democracies of South America," International Symposia in Economic Theory and Econometrics, in: Macroeconomic Analysis and International Finance, volume 23, pages 37-58, Emerald Group Publishing Limited.
    9. Leonardo Gasparini & Jessica Bracco, 2023. "Tres Décadas en Diez Gráficos: El Desarrollo Inclusivo en América Latina a la Luz de las Encuestas de Hogares," CEDLAS, Working Papers 0314, CEDLAS, Universidad Nacional de La Plata.
    10. Bassol3, Leandre & Essama-Nssah, B. & Paul,Saumik, 2010. "Accounting for heterogeneity in growth incidence in Cameroon," Policy Research Working Paper Series 5464, The World Bank.
    11. Azevedo, Joao Pedro & Sanfelice, Viviane & Nguyen, Minh C., 2012. "Shapley Decomposition by Components of a Welfare Aggregate," MPRA Paper 85584, University Library of Munich, Germany.
    12. Flaviana Palmisano, 2012. "The distributional incidence of growth: a non-anonymous and rank dependent approach," SERIES 0039, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Jul 2012.
    13. Maurizio Bussolo & Luis F. Lopez-Calva, 2014. "Shared Prosperity : Paving the Way in Europe and Central Asia," World Bank Publications - Books, The World Bank Group, number 17696.
    14. Dwayne Benjamin & Loren Brandt & John Giles, 2011. "Did Higher Inequality Impede Growth in Rural China?," Economic Journal, Royal Economic Society, vol. 121(557), pages 1281-1309, December.
    15. repec:aru:wpaper:201304 is not listed on IDEAS
    16. Giulia Barletta & Maimuna Ibraimo & Vincenzo Salvucci & Enilde Sarmento & Finn Tarp, 2022. "The evolution of inequality in Mozambique: 1996/97-2019/20," WIDER Working Paper Series wp-2022-151, World Institute for Development Economic Research (UNU-WIDER).
    17. Azevedo, Joao Pedro & Inchauste, Gabriela & Sanfelice, Viviane, 2013. "Decomposing the recent inequality decline in Latin America," Policy Research Working Paper Series 6715, The World Bank.
    18. B. Essama-Nssah & Saumik Paul & Léandre Bassolé, 2013. "Accounting for Heterogeneity in Growth Incidence in Cameroon Using Recentered Influence Function Regression," Journal of African Economies, Centre for the Study of African Economies, vol. 22(5), pages 757-795, November.

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    More about this item

    Keywords

    Poverty and inequality dynamics; growth incidence curves.;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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