Poverty and Inequality Components: a Micro Framework

Araar Abdelkrim () and Jean-Yves Duclos ()

Cahiers de recherche from CIRPEE

Abstract: This paper explores the link between poverty and inequality through an analysis of the poverty impact of changes in income-component inequality and in between -an within- group inequality. This can help shed light on the theoretical and empirical linkages between poverty, growth and inequality. It might also help design policies to improve both equity and welfare. The tools are illustrated using the recent 2004 Nigerian national household survey. The analytical derived linkages are supported by the empirical illustration, and interesting insights also emerge from the empirical analysis. One such insight is that both the sign and the size of the elasticities can be quite sensitive to the choice of measurement assumptions (such as the choice of inequality and poverty aversion parameters, and that of the poverty line). The elasticities are also very much distributive-sensitive and dependent on the type of inequality-changing processes taking place. This also suggests that the response of poverty to growth can also be expected to be significantly context specific.

Keywords: Poverty; inequality; poverty elasticities; redistribution (search for similar items in EconPapers)
JEL-codes: D63 I32 O12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr, nep-dev and nep-ltv
Date: 2007
View list of references

Downloads: (external link)
http://www.cirpee.org/fileadmin/documents/Cahiers_2007/CIRPEE07-35.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:lvl:lacicr:0735

Access Statistics for this paper

More papers in Cahiers de recherche from CIRPEE
Contact information at EDIRC.
Series data maintained by Johanne Perron ().