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Narayan, Ambar

Poverty and Equity Global Practice of the World Bank
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Welfare economics, Labor economics, Inequality, Poverty and social impact, Impact evaluation and economic shocks, Policy and program evaluation
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Poverty and Equity Global Practice of the World Bank
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Last updated August 29, 2023
Biography
Ambar Narayan, a Lead Economist in the Poverty and Equity Global Practice of the World Bank, leads and advises teams conducting policy analysis and research in development from a microeconomic perspective. Topics that he works on include inequality of opportunity, economic mobility, policy evaluation, economic transformation, country diagnostics, and impacts of economic shocks on households. Currently, he provides leadership to teams engaged in analyzing the distributional impacts of markets, institutions and private sector participation, and the inequality implications of COVID-19 for developing countries. Ambar has been a lead author for several large World Bank studies, including a recent global report on intergenerational mobility titled “Fair Progress?” as well as reports on inequality of opportunity, poverty, and the impacts of financial crisis in developing countries. In the past, he has worked in the South Asia region of the World Bank on knowledge and lending programs. He has authored a number of scholarly publications and working papers, which reflect the eclectic mix of topics he has worked on over the years. He holds a PhD in Economics from Brown University in the United States.

Publication Search Results

Now showing 1 - 10 of 11
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    Inequality of Opportunities in the Labor Market : Evidence from Life in Transition Surveys in Europe and Central Asia
    (World Bank, Washington, DC, 2012-10) Abras, Ana ; Hoyos, Alejandro ; Narayan, Ambar ; Tiwari, Sailesh
    This paper attempts to quantify the degree of inequality of opportunity in labor market outcomes for a selection of countries in the Europe and Central Asia (ECA) region. We adapt the Human Opportunity Index (HOI) methodology that has been widely used to study opportunities of children to measures of inequality in the labor market for working age adults, using data from the Life in Transition Surveys (LiTS) conducted in 2006. We decompose the observed inequalities into components that are attributable to circumstances an individual was born into (e.g., gender, parents’ education, minority status, etc) and other characteristics (education and age). We conduct additional exercises with this measure, which examine: (i) comparisons with an expenditure-based measure of inequality of opportunity; (ii) the extent to which the measures of inequality resonate with individual perceptions of life satisfaction and fairness; and (iii) how the results for ECA countries compare with similar measures in the Latin America and the Caribbean (LAC) region. Our findings show substantial inequality of opportunity (attributable to circumstances that an individual was born into) in employment status in the ECA region and a high degree of heterogeneity across countries in the circumstances that matter the most for inequality. The correlations between measures and perceptions of inequality among citizens across ECA countries suggest that inequality between groups, including measures of inequality of opportunity, matter more than overall measures of inequality for citizen perceptions of "fairness". The results are robust to different definitions of jobs as opportunities.
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    How Unfair is the Inequality of Wage Earnings in Russia?: Estimates from Panel Data
    (World Bank, Washington, DC, 2015-06) Tiwari, Sailesh ; Lara Ibarra, Gabriel ; Narayan, Ambar
    This paper attempts to determine the extent to which inequality in wage earnings in the Russian Federation is unfair. Unlike other similar attempts that can, at best, produce a lower bound on the estimate of the share of inequality that is unfair, this paper exploits the longitudinal nature of the data to come up with a lower bound as well as an upper bound. The upper bound is further refined to take into account the indirect effect of circumstances at birth (gender, parental wealth, etc.) on effort. Results show that the upper bound on the inequality of opportunity may be three to four times the measured lower bound and significantly higher for females than males in the sample. Finally, comparison with the United States and Germany show that although total inequality is lower in Russia, the share of unfair inequality is distinctly larger. The markedly large explanatory role of extraneous factors, such as gender and parental characteristics, in wage inequality calls for a close examination of governments’ efforts to address inequities in the labor market.
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    Fair Progress?: Economic Mobility Across Generations Around the World
    (Washington, DC: World Bank, 2018-05-09) Narayan, Ambar ; Van der Weide, Roy ; Cojocaru, Alexandru ; Lakner, Christoph ; Redaelli, Silvia ; Mahler, Daniel Gerszon ; Ramasubbaiah, Rakesh Gupta N. ; Thewissen, Stefan
    Fair Progress? Economic Mobility Across Generations Around the World looks at an issue that has gotten much attention in the developed world, but with, for the first time, new data and analysis covering most of the world, including developing economies. The analysis examines whether those born in poverty or in prosperity are destined to remain in the same economic circumstances into which they were born, and looks back over a half a century at whether children’s lives are better or worse than their parents’ in different parts of the world. It suggests local, national, and global actions and policies that can help break the cycle of poverty, paving the way for the next generation to realize their potential and improve their lives.
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    Equality of Opportunities and Fiscal Incidence in Cote d'Ivoire
    (World Bank, Washington, DC, 2012-04) Abras, Ana ; Cuesta, Jose ; Hoyos, Alejandro ; Narayan, Ambar
    This study analyzes opportunities for children in Cote d'Ivoire, where opportunities refer to access to basic services and goods that improve the likelihood of a child maximizing his or her human potential. The principle that guides this analysis is one of equality of opportunity, which is that a child's circumstances at birth should not determine his or her access to opportunities. The analysis computes the Human Opportunity Index, which measures the extent to which access to basic services is universal and evenly distributed among children of different circumstances. Opportunities are limited in Cote d'Ivoire, despite some improvements in access to electricity and timely access to primary education. Otherwise, trends on access remain stagnant. Scale effects (variations across the board) are behind these trends, with little improvement observed from equalizing interventions. Circumstances such as region and household head characteristics affect a child's access to opportunities, while household incomes and a child's gender and ethnicity play a relatively small role in access differentials. Public spending on education opportunities is shown to be regressive and pro-rich, especially when analyzed across the distribution of circumstances rather than acroos income level.The groups of children that are particularly behind in terms of educational opportunities are those whose household heads lack primary education and reside in rural areas. Closing the enrollment gap of these children should be a priority for targeted educational interventions. However, improving opportunities may require more than a single type of intervention: opportunities with low coverage may need to be scaled up, while those with large inequalities of access may require equalizing interventions.
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    Assessing Poverty and Distributional Impacts of the Global Crisis in the Philippines : A Microsimulation Approach
    ( 2010-04-01) Habib, Bilal ; Narayan, Ambar ; Olivieri, Sergio ; Sanchez-Paramo, Carolina
    As the financial crisis has spread through the world, the lack of real-time data has made it difficult to track its impact in developing countries. This paper uses a micro-simulation approach to assess the poverty and distributional effects of the crisis in the Philippines. The authors find increases in both the level and the depth of aggregate poverty. Income shocks are relatively large in the middle part of the income distribution. They also find that characteristics of people who become poor because of the crisis are different from those of both chronically poor people and the general population. The findings can be useful for policy makers wishing to identify leading monitoring indicators to track the impact of macroeconomic shocks and to design policies that protect vulnerable groups.
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    Economic Mobility Across Generations in the Developing East Asia and Pacific Region
    (World Bank, Washington, DC, 2019-09) Narayan, Ambar ; Yang, Judy
    The pace and success of economic growth in the developing East Asia and Pacific region (EAP) has been described as nothing short of a miracle. Education and its complementarities are often linked and credited significantly for the region's positive story on economic growth. During the early stages of the region's development, education kept pace and complemented labor needs; widespread basic literacy and numeracy met demands in manufacturing and assembling. This led to rapid improvements in educational mobility across generations in absolute terms, where mobility is understood as the rise in education levels from one generation to the next. On the other hand, progress has been slower and uneven in relative mobility, which is more closely linked to inequality in education and income and refers to the extent to which an individual's position in society is influenced by that of his or her parents.
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    COVID-19 and Inequality: How Unequal Was the Recovery from the Initial Shock?
    (World Bank, Washington, DC, 2021-06) Agrawal, Sarthak ; Cojocaru, Alexandru ; Montalva, Veronica ; Narayan, Ambar ; Bundervoet, Tom ; Ten, Andrey
    The restrictions on mobility and economic activity that were put in place to mitigate the health impacts of the COVID-19 (coronavirus) pandemic have had an unequal impact both across and within countries, with vulnerable populations within developing countries being affected disproportionately. An important concern is that the recovery may be similarly inequitable. Across the 17 developing countries in our sample, where policies became more conducive to mobility and economic activity, we indeed observe a partial recovery of employment and incomes in most countries, as well as improvements in food security. Although job recovery and lower policy stringency were accompanied by an overall fall in the share of the food-insecure population from 13 percent to 9 percent, those living in rural areas witnessed slower declines in food insecurity. However, the recovery was not only incomplete, but also uneven within countries. In particular, the recovery in employment among those who suffered larger initial shocks - - women, non-college-educated, and urban workers - - was not sufficient to significantly reduce the initial disparities in losses. By August-September, female employment had only recovered 30 percent of what was lost between pre-pandemic and May-June (versus 49 percent for men). Finally, more recent data for a smaller number of countries up to January 2021 indicates that while food security continued improving in these countries, recovery in employment appears to have stalled, while the disparities by gender and education persisted.
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    Inequality of Opportunities Among Children: How Much Does Gender Matter?
    (World Bank, Washington, DC, 2011-06-27) Hoyos, Alejandro ; Narayan, Ambar
    Authors apply a decomposition method to a measure of inequality of opportunities among children (the human opportunity index) to examine the question of how much does gender of a child contribute to inequality in access to critical services that should be available as basic minimum opportunities to all children. Authors use a database of 47 countries for which Demographic and Health Survey (DHS) data is available during 2003-2010, four indicators for opportunities and a limited set of circumstances or characteristics of the child. On the average and for most countries, the contribution of gender of the child to inequality of opportunity in two measures of school attendance and immunization tends to be low and much below the contribution of household factors such as economic status and urban/rural location. In a few countries, however, gender still plays a more substantial role in influencing a child's access to a particular service. Preliminary evidence also suggests that inequalities and contributions of gender to inequality across opportunities are correlated, particularly for opportunities in the same sector.
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    Knowing, When You Do Not Know : Simulating the Poverty and Distributional Impacts of an Economic Crisis
    (World Bank, 2012-01-12) Narayan, Ambar ; Sánchez-Páramo, Carolina
    Economists have long sought to predict how macroeconomic shocks will affect individual welfare. Macroeconomic data and forecasts are easily available when crises strike. But policy action requires not only understanding the magnitude of a macro shock, but also identifying which households or individuals are being hurt by (or benefit from) the crisis. Moreover, in many cases, impacts on the ground might be already occurring as macro developments become known, while micro level evidence is still unavailable because of paucity of data. Because of these reasons, a comprehensive real-time understanding of how the aggregate changes will translate to impacts at the micro level remains elusive. This problem is particularly acute when dealing with developing countries where household data is sporadic or out of date. This volume outlines a more comprehensive approach to the problem, showcasing a micro simulation model, developed in response to demand from World Bank staff working in countries and country governments in the wake of the global financial crisis of 2008-09. During the growing catastrophe in a few industrialized countries, there was rising concern about how the crisis would affect the developing world and how to respond to it through public policies. World Bank staff s was scrambling to help countries design such policies; this in turn required information on which groups of the population, sectors and regions the crisis would likely affect and to what extent. The volume is organized as follows. Chapter 1 summarizes the methodology underlying the micro simulation model to predict distributional impacts of the crisis, along with several case studies that highlight how the model can be used in different country contexts. Chapters 2 to 4 are written by experts external to the Bank, two of whom participated as discussants at a workshop on the micro simulation work organized in May, 2010 at the World Bank headquarters. Chapter 2 comments on the broader implications and shortcomings of applying the technique described in Chapter 1 and the ability or willingness of governments to respond adequately to its results. Chapter 3 draws parallels between the United States and developing countries to discuss the lessons that can be learned for mitigating the impacts of future crises. Chapter 4 discusses how the micro simulation approach can be sharpened to make it a better tool for distributional analysis moving forward.
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    Uneven Odds, Unequal Outcomes: Inequality of Opportunity in the Middle East and North Africa
    (Washington, DC: World Bank, 2016-06-23) Krishnan, Nandini ; Lara Ibarra, Gabriel ; Narayan, Ambar ; Tiwari, Sailesh ; Vishwanath, Tara
    Perceptions of eroding living standards and low life satisfaction are widespread in the Middle East and North Africa region today, along with pessimism about prospects for economic mobility. Conventional measures of economic well-being offer little in the way of explanation – in most countries in the region, extreme poverty is low and declining and economic inequality is lower than in other parts of the world. This book investigates possible reasons for this disconnect, focusing on the role played by inadequate and unequal access to opportunities to realize one’s aspirations for economic mobility. The inability of most countries in the region to meet the aspirations of citizens is closely linked to persistent weaknesses in the labor markets where the pace of job creation has been chronically below levels required to absorb the growing and increasingly better educated population. A high degree of segmentation in the labor markets also puts the youth and women in the region at a particular disadvantage. While labor markets are critical for mobility, opportunities and life paths can diverge even earlier in life if access to basic services in health, education and infrastructure are unequally distributed among children in their formative years. This book documents sharp disparities in the quality of services available to children of varying birth circumstances in the region. Although the most intense debates in development coalesce around inequality of income or wealth, the notion of inequality of opportunity has an intuitive appeal that can bridge ideological differences. By drawing attention to the notion of equality of opportunity to create a level playing field for all sections of society, the book highlights the need to critically examine the social contract and governance structures that guide the delivery of services and are instrumental for implementing necessary reforms to make labor markets more dynamic and equitable.