Growth elasticity of monetary and non-monetary poverty: an application to Iran

Hosnieh Mahoozi
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Hosnieh Mahoozi: Justus-Liebig University, Germany

No 403, Working Papers from ECINEQ, Society for the Study of Economic Inequality

Abstract: The sensitivity of the frequency of poverty to economic growth is one of the central issues of poverty and development discourse. In this paper we estimate the income growth elasticity of poverty and income inequality elasticity of poverty for a panel of 28 provinces of Iran from 1998 to 2009. We also, for the first time, estimate the growth elasticity of multidimensional poverty (estimated via Alkire-Foster method). The results demonstrated the low income growth elasticity of poverty while the income inequality elasticity of poverty is stronger and significant. Similar results are obtained for elasticities of multidimensional poverty. The results suggest that changes in inequality are more important for poverty reduction than in income growth.

Keywords: Growth elasticity of poverty; income inequality; monetary poverty; Multidimensional poverty. (search for similar items in EconPapers)
JEL-codes: D63 I30 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2016-06
New Economics Papers: this item is included in nep-ara and nep-cwa
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Persistent link: https://EconPapers.repec.org/RePEc:inq:inqwps:ecineq2016-403

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