When Do We See Poverty Convergence?*

Jesus Crespo Cuaresma, Stephan Klasen and Konstantin Wacker

Oxford Bulletin of Economics and Statistics, 2022, vol. 84, issue 6, 1283-1301

Abstract: We show why convergence in mean income levels and the negative relation between mean income growth and poverty changes need not lead to proportionate poverty convergence across countries. We propose an analytical framework that highlights that poverty convergence depends on the speed of income convergence relative to a complex interaction of initial inequality, mean income levels, and inequality dynamics. Our framework allows us to investigate poverty convergence, or the lack thereof, under different plausible dynamics of mean income and inequality.

Date: 2022
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