Description: Growth Still Is Good for the Poor

Growth Still Is Good for the Poor

Incomes in the poorest two quintiles on average increase at the same rate as overall average incomes. This is because, in a global dataset spanning 118 countries over the past four decades, changes in the share of income of the poorest quintiles ar...

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Bibliographic Details
Main Authors:	Dollar, David, Kleineberg, Tatjana, Kraay, Aart
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	ABSOLUTE POVERTY ADVANCED ECONOMIES AGGREGATE GROWTH AGGREGATE INCOME AGRICULTURAL PRODUCTIVITY AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE AVERAGE ANNUAL AVERAGE ANNUAL GROWTH AVERAGE CHANGE AVERAGE GROWTH AVERAGE GROWTH RATE AVERAGE INCOME AVERAGE INCOME GROWTH AVERAGE INCOMES BENCHMARK BLACK MARKET BLACK MARKET PREMIUM CAPITAL ACCOUNT CIVIL LIBERTIES CONSUMPTION GROWTH COUNTRY LEVEL COUNTRY VARIATION COUNTRY-BY-COUNTRY BASIS CROSS-COUNTRY INCOME CROSS-COUNTRY PANEL DATA AVAILABILITY DEMOCRACY DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT RESEARCH DISPOSABLE INCOME DISTRIBUTION OF INCOME ECONOMETRICS ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC REVIEW ECONOMICS EDUCATIONAL ATTAINMENT EMERGING MARKETS EMPIRICAL ANALYSIS EMPIRICAL FINDINGS EMPIRICAL GROWTH LITERATURE EMPIRICAL LITERATURE EMPIRICAL MODELS EMPIRICAL RESULTS ESTIMATED COEFFICIENT EXCHANGE RATE EXPECTED VALUE EXPLANATORY POWER EXPLANATORY VARIABLES EXPORTS EXTREME POVERTY FINANCIAL DEPTH FINANCIAL SUPPORT FINANCIAL TRANSACTIONS FIRST YEAR GDP GDP DEFLATOR GINI COEFFICIENT GLOBALIZATION GOVERNMENT BUDGET GOVERNMENT EXPENDITURE GROWTH CONTEXT GROWTH DETERMINANTS GROWTH EMPIRICS GROWTH EPISODES GROWTH LITERATURE GROWTH RATE GROWTH RATES GROWTH REGRESSIONS HETEROSKEDASTICITY HIGH INCOME COUNTRIES HIGH URBANIZATION HOUSEHOLD SURVEYS INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME GROWTH INCOME INEQUALITY INCOME QUINTILES INCOME SHARE INCOME STUDY INDUSTRIAL COUNTRIES INEQUALITY CHANGES INEQUALITY MEASURE INEQUALITY MEASURES INFLATION INFLATION RATE LABOUR MARKET LIFE EXPECTANCY LIVING STANDARDS LOCAL CURRENCY LONG-TERM GROWTH LORENZ CURVE M2 MACRO POLICY MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMICS MARKET REGULATION MEAN CHANGE MEAN GROWTH MEAN INCOME MEAN INCOME GROWTH MEAN INCOMES MEASUREMENT ERROR MICRO DATA MONOPOLY NATIONAL ACCOUNTS NATIONAL INCOME 0 HYPOTHESIS OUTPUTS PARTICULAR COUNTRIES PER CAPITA CONSUMPTION POLICY DISCUSSIONS POLICY REFORMS POLICY RESEARCH POLITICAL RIGHTS POLITICAL STABILITY POPULATION GROWTH POSITIVE CORRELATION POVERTY DEBATE POVERTY ESTIMATES POVERTY LINE POVERTY LINES POVERTY REDUCTION POWER PARITY PRIMARY ENROLLMENT PRIVATE CONSUMPTION PRO-POOR PUBLIC SECTOR PUBLIC SPENDING PURCHASING POWER RAPID GROWTH REDUCING INEQUALITY REGRESSION RESULTS RELATIVE IMPORTANCE RELATIVE INCOMES RISING INCOME INEQUALITY RISING INEQUALITY SECTOR EMPLOYMENT SERIES DATA SIGNIFICANT RELATIONSHIP SOCIAL SPENDING STANDARD DEVIATION TAX TAX SYSTEMS TRADE OPENNESS URBAN AREAS VALUE ADDED WEALTH
Online Access:	http://documents.worldbank.org/curated/en/2013/08/18104693/growth-still-good-poor http://hdl.handle.net/10986/16001

Description
Summary:	Incomes in the poorest two quintiles on average increase at the same rate as overall average incomes. This is because, in a global dataset spanning 118 countries over the past four decades, changes in the share of income of the poorest quintiles are generally small and uncorrelated with changes in average income. The variation in changes in quintile shares is also small relative to the variation in growth in average incomes, implying that the latter accounts for most of the variation in income growth in the poorest quintiles. These findings hold across most regions and time periods and when conditioning on a variety of country-level factors that may matter for growth and inequality changes. This evidence confirms the central importance of economic growth for poverty reduction and illustrates the difficulty of identifying specific macroeconomic policies that are significantly associated with the relative growth rates of those in the poorest quintiles.

Growth Still Is Good for the Poor

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