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Azevedo, João Pedro
Global Practice on Poverty, The World Bank
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Inequality and Shared Prosperity,
Social Protection and Labor,
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Global Practice on Poverty, The World Bank
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July 19, 2023
Biography
João Pedro Azevedo is a Lead Economist at the World Bank in Washington. He currently works for the Poverty and Equity Global Practice in the European and Central Asia region, focusing on Central Asia and Turkey and leading the region's Statistics Team. João Pedro also leads the Global Solution Group on Welfare Measurement and Statistical Capacity for Results from the Poverty and Equity Global Practice. João Pedro has focused much of his work on helping developing countries improve their systems for evidence-based decision making. He worked in Colombia, Brazil and the Dominican Republic for five years, and led important regional public efforts such as the Latin American & Caribbean Stats Team and the LAC Monitoring and Evaluation Network. João Pedro brings solid and varied experience in applied econometrics to the fields of poverty and inequality. Before joining the Bank, João Pedro served as the superintendent of monitoring and evaluation at the Secretary of Finance for the State of Rio de Janeiro, as well as a research fellow at the Institute of Applied Economic Research from the Brazilian Ministry of Planning. He is a former chairman of the Latin American & Caribbean Network on Inequality and Poverty and holds a PhD in Economics.
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Publication
Fifteen Years of Inequality in Latin America : How Have Labor Markets Helped?
(World Bank, Washington, DC, 2013-03) Azevedo, João Pedro ; Dávalos, María Eugenia ; Diaz-Bonilla, Carolina ; Atuesta, Bernardo ; Castañeda, Raul AndresHousehold income inequality has declined in Latin America in the past decades, contributing significantly to poverty reduction in the region. Although available evidence shows that changes in the labor income are among the main factors behind these inequality trends, few studies have analyzed more closely the labor market dynamics that have led to a decline in total income inequality in some countries, but also to an increase in others. Using household survey data for a sample of 15 countries in Latin America from 1995 to 2010, this paper uses an extension of the Juhn-Murphy-Pierce methodology to decompose changes in labor income inequality (hourly wages) into a quantity effect (capturing changes in the distribution of workers' skills), price effect (reflecting returns to skills), and unobservables effect (other components, within skill groups, affecting labor income). The results show that falling returns to skills for both education and experience is, on average, driving the decline in labor income inequality in Latin America. The quantity effect, in turn, has contributed little to inequality reduction, mostly attributable to a larger dispersion in years of experience, possibly linked to the region's demographic transition and to significant increases in female labor force participation. Additional findings show that wage inequality, still high in the region, is coupled with inequality in terms of hours worked. The paper complements the existing literature by presenting separate results for males and females, as well as formal and informal sector workers as an attempt to control for secular shifts in these characteristics. -
Publication
From Noise to Signal : The Successful Turnaround of Poverty Measurement in Colombia
(World Bank, Washington, DC, 2013-05) Azevedo, João PedroIn the mid-2000s, poverty measurement in Colombia was at a standstill. A dated poverty measurement methodology was clashing with improvements in the national household survey system. As a result, official poverty rates showed volatile trends, and a weak communication strategy produced an unconvincing storyline, which further resulted in the rapid deterioration of indicator credibility. This happened during a period of high and sustained growth that also included a number of poverty reduction interventions, such as the flagship program familias en accion and the unidos strategy. The public debate on poverty lost focus and moved from substantial policy discussions to technical measurement methods. -
Publication
Decomposing the Recent Inequality Decline in Latin America
(World Bank, Washington, DC, 2013-12) Azevedo, Joao Pedro ; Inchauste, Gabriela ; Sanfelice, VivianeOver the past decade, 12 of 14 Latin American countries have experienced a reduction in inequality. Based on a series of counterfactual simulations, the observed changes in inequality are decomposed in order to identify the main determinants of inequality. In contrast to methods that focus on aggregate summary statistics, the method adopted in this paper generates counterfactual distributions, so that the analysis can account for changes related to demographics, occupation, labor earnings and transfers, pensions, and other nonlabor income sources. The results show that for the majority of countries in the sample, the most important contributor to the observed decline in inequality has been the relatively strong growth in labor earnings at the bottom of the income distribution. In particular, most of the reduction in inequality can be attributed to an increase in earnings per hour for the bottom of the income distribution. The paper also contributes to the literature on inequality in Latin America by providing the Shapley-Shorrocks value of this decomposition. -
Publication
Teenage Pregnancy and Opportunities in Latin America and the Caribbean : On Teenage Fertility Decisions, Poverty and Economic Achievement
(World Bank, Washington, DC, 2012) Azevedo, Joao Pedro ; Favara, Marta ; Haddock, Sarah E. ; Lopez-Calva, Luis F. ; Muller, Miriam ; Perova, ElizavetaThe pregnancy project sought to expose the existence, and challenge the validity, of stereotypes about Hispanic women. The charade explored the underlying motivations of the many who responded with a wide range of reactions. The specific objectives of this regional study are: to establish a thorough description of the magnitude of the issue and its potential implications for social advancement; to advance the understanding of the risk factors, motivations and impacts at the household level-as a determinant of poverty and a cause of intra-and intergenerational poverty traps; to illuminate the coping mechanisms and their individual and social implications; to highlight the gender-related issues that have historically provoked asymmetric costs to boys and girls; and to provide elements that support specific policies on this matter. In the last decade, Latin America and the Caribbean (LAC) have been moving in the right direction and the region has experienced important gains in gender equality of endowments (assets) and economic opportunities. In most LAC countries, girls have been achieving gender parity in primary school enrollment and even outperforming boys at the secondary and tertiary level. The present report reviews the factors associated with teenage pregnancy and early childbearing and builds a framework to explore these issues systematically, towards the design of effective policy interventions in LAC. Teen pregnancy and early childbearing remain a challenge in the region, particularly given the association of these phenomena with poverty and lack of opportunities, and the concern that it may prevent women from taking full advantage of their human development assets and opportunities. The main message of the report is that poverty and lack of opportunities are key factors associated to early childbearing. -
Publication
Is the Baby to Blame? An Inquiry into the Consequences of Early Childbearing
(World Bank, Washington, DC, 2012-05) Azevedo, Joao Pedro ; Lopez-Calva, Luis F. ; Perova, ElizavetaTeenage pregnancy has been a cause of concern for policy makers because it is associated with a complex and often adverse social context for women. It is seen as the cause of lower social and economic achievement for mothers and their children, and as the potential determinant of inter-generational poverty traps. However, the question of whether pregnancy -- and the subsequent rearing of a child -- is actually the trigger of poverty, higher dependence on social welfare and/ or other undesirable social and economic consequences has not been studied in developing countries with enough rigor to establish a causal relation. This paper follows a methodology previously applied in the United States, using Mexican data from the National Survey of Demographic Dynamics, to exploit information about miscarriages as an instrument to identify the long-term consequences of early child bearing. Thus, the paper takes the advantage of a natural experiment: it compares the outcomes of women who became pregnant in adolescence, and gave birth, to outcomes of women who became pregnant in adolescence and miscarried. This approach only allows for estimating the costs of adolescent childbearing for teenagers in a risk group, that is, teenagers who are likely to experience a pregnancy. The results are consistent with findings in the United States, suggesting that, contrary to popular thinking, adolescent childbearing does not hamper significantly the lifelong opportunities of the young mothers. Actually, women who gave birth during their adolescence have on average 0.34 more years of education, and are 21 percentage points more likely to be employed, compared with their counterparts who miscarried. The results also suggest, however, greater dependence on social welfare among women who gave birth during adolescence: their social assistance income is 36 percent higher, and they are more likely to participate in social programs, especially the conditional cash transfer program Oportunidades. -
Publication
Fiscal Adjustment and Income Inequality : Sub-national Evidence from Brazil
(World Bank, Washington, DC, 2014-06) Azevedo, Joao Pedro ; David, Antonio C. ; Rodrigues Bastos, Fabiano ; Pineda, EmilioThe paper combines state-level fiscal data with household survey data to assess the links between sub-national fiscal policy and income inequality in Brazil over the period 1995-2011. The results indicate that a tighter fiscal stance at the sub-national level is not associated with a deterioration in inequality measures. This finding contrasts with the conclusions of several papers in the burgeoning literature on the effects of fiscal consolidation on inequality using national data for OECD economies. In addition, the authors find that a tighter stance is typically positively associated with a measure of "shared prosperity". Hence, the results caution against extrapolating policy implications of the literature focusing on advanced economies to other settings. -
Publication
Understanding Changes in Poverty
(World Bank Group, Washington, DC, 2014-08-12) Inchauste, Gabriela ; Azevedo, João Pedro ; Essama-Nssah, B. ; Olivieri, Sergio ; Van Nguyen, Trang ; Saavedra-Chanduvi, Jaime ; Winkler, HernanUnderstanding Changes in Poverty brings together different methods to decompose the contributions to poverty reduction. A simple approach quantifies the contribution of changes in demographics, employment, earnings, public transfers, and remittances to poverty reduction. A more complex approach quantifies the contributions to poverty reduction from changes in individual and household characteristics, including changes in the sectoral, occupational, and educational structure of the workforce, as well as changes in the returns to individual and household characteristics. Understanding Changes in Poverty implements these approaches and finds that labor income growth that is, growth in income per worker rather than an increase in the number of employed workers was the largest contributor to moderate poverty reduction in 21 countries experiencing substantial reductions in poverty over the past decade. Changes in demographics, public transfers, and remittances helped, but made relatively smaller contributions to poverty reduction. Further decompositions in three countries find that labor income grew mainly because of higher returns to human capital endowments, signaling increases in productivity, higher relative price of labor, or both. Understanding Changes in Poverty will be of particular relevance to development practitioners interested in better understanding distributional changes over time. The methods and tools presented in this book can also be applied to better understand changes in inequality or any other distributional change. -
Publication
Weather Shocks and Health at Birth in Colombia
(World Bank Group, Washington, DC, 2014-11) Andalon, Mabel ; Azevedo, Joao Pedro ; Rodriguez Castelan, Carlos ; Sanfelice, Viviane ; Valderrama, DanielPoor health at birth has negative long-run effects on individual well-being and is also detrimental for intergenerational mobility. This paper examines whether health outcomes at birth are affected by in utero increased exposure to rainfall and temperature shocks in Colombia, one of the countries in the world with the highest incidence of extreme weather events per year. The paper uses a fixed effects design to gauge the causal effect using variation in fetal exposure to these shocks by municipality and date of birth. The analysis finds negative effects of temperature shocks on birth health outcomes and no effect of rainfall shocks. The results indicate that heat waves lead to a 0.5 percentage point reduction in the probability of being born at full term and a decline of 0.4 percentage point in the probability of newborns classified as healthy. The timing of exposure to the shock matters and it matters differently for different outcomes. These findings are critical to prioritize responses to counteract the negative effects of weather, particularly hot shocks, which are projected to become more frequent and intense with changing climate. -
Publication
Kyrgyz Republic: Social Sectors at a Glance
(World Bank, Washington, DC, 2015-08) Azevedo, Joao Pedro ; Calvo, Paula ; Nguyen, Minh ; Posadas, JosefinaTraditional benchmarks to assess performance rely on unconditional rankings or regional averages. This paper uses a recently developed methodology based on quantile regressions and initial conditions to propose alternative benchmarks for social sectors in Kyrgyz Republic. Covering a wide set of indicators, the analysis reveals mixed results for Kyrgyz Republic. The country has made important strides in many social areas, with outstanding results in reducing child mortality and undernourishment. However, other areas are still key challenges and demand further attention and resources, as evidenced by the underachievement in maternal mortality, educational performance, and increasing informality in labor markets. -
Publication
How Equitable is Access to Finance in Turkey?: Evidence from the Latest Global FINDEX
(World Bank, Washington, DC, 2016-01) Azevedo, Joao Pedro ; Inan, Osman Kaan ; Yang, Judy S.Access to finance is a key component of poverty reduction, as it enables individuals to make economic decisions that can improve their welfare. The equality of access among different groups in society is also crucial for correctly allocating the positive benefits of improved financial services. In Turkey, bank account, debit card, and credit card ownership, which can serve as the main indicators of access to finance, are at a remarkably high level. However, adjusting the coverage rate of these indicators by controlling for age, education, gender, an income reveals that gender is the main source of inequality in Turkey at the individual level. Despite the progress made in addressing the gender disparity in access to finance between 2011 and 2014, females in Turkey continue to be financially less included. Moreover, Turkey's low level of savings and high rate of informal borrowing compared with its peers diminish individuals' resilience to future shocks. Promisingly, Turkey has been able to improve its rate of savings significantly over the past few years, although it continues to be among the countries that save at a lower level.