EconPapers    
Economics at your fingertips  
 

Inequality, income and poverty: comparative global evidence

Augustin Fosu ()

Global Development Institute Working Paper Series from GDI, The University of Manchester

Abstract: Analysing a large sample of 1980-2004 unbalanced panel data, the current study presents comparative global evidence on the role of (income) inequality in poverty reduction. The evidence involves both an indirect channel via the tendency of high inequality to decrease the rate at which income is transformed to poverty reduction, and the tendency of rising inequality to increase poverty. Based on the basic-needs approach, an analysis-of-covariance model is estimated, with the headcount measure of poverty as the dependent variable, and the Gini coefficient and PPP-adjusted mean income as explanatory variables. The study finds that the responsiveness of poverty to income growth is a decreasing function of inequality, and that the income elasticity of poverty is actually smaller than the inequality elasticity. Thus, income distribution can play a more important role than might be traditionally acknowledged. Found also is a large variation across regions (and countries) in the poverty effects of inequality. A version of this paper has been accepted for publication in Social Science Quarterly.

Date: 2010
New Economics Papers: this item is included in nep-ltv, nep-pbe and nep-pke
References: View complete reference list from CitEc
Citations: View citations in EconPapers (160)

Downloads: (external link)
http://hummedia.manchester.ac.uk/institutes/gdi/pu ... pi/bwpi-wp-14010.pdf (application/pdf)

Related works:
Journal Article: Inequality, Income, and Poverty: Comparative Global Evidence (2010) Downloads
Working Paper: Inequality, Income and Poverty: Comparative Global Evidence (2010) Downloads
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: https://EconPapers.repec.org/RePEc:bwp:bwppap:14010

Access Statistics for this paper

More papers in Global Development Institute Working Paper Series from GDI, The University of Manchester Contact information at EDIRC.
Bibliographic data for series maintained by Rowena Harding ().

 
Page updated 2024-11-05
Handle: RePEc:bwp:bwppap:14010