Publication:
Who is Poorer?: Poverty by Age in the Developing World

Loading...
Thumbnail Image
Files in English
English PDF (395.24 KB)
573 downloads
English Text (46.74 KB)
21 downloads
Date
2015-06
ISSN
Published
2015-06
Editor(s)
Abstract
This note shows that based on headcount poverty rates, at the household level, households with elderly members are roughly equally poor to non-elderly households, though with variation when using more detailed compositions, and the elderly are less poor than children in 98 percent of the countries sampled when comparing different age groups. Further, as a share of the poor, elderly average only 10 percent, children 36 percent, and adults 54 percent. Moderate equivalence adjustments result in a four percentage point change in the number of countries with children better off than elderly. (A separate note provides detailed sensitivity analysis). These results can be seen as a starting point for further analysis that would look at the reasons behind differences between countries as well as age sub-groups within countries. The findings provide preliminary evidence that households with elderly, and especially elderly individuals are often not the most poor. The analysis is relevant to countries considering new policies or reforms of existing programs targeting particular age groups, such as the elderly or children.
Link to Data Set
Citation
Evans, Brooks; Palacios, Robert. 2015. Who is Poorer?: Poverty by Age in the Developing World. © World Bank. http://hdl.handle.net/10986/24992 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections

Related items

Showing items related by metadata.

  • Publication
    World Bank Support for Pensions and Social Security
    (World Bank, Washington, DC, 2012-03) Dorfman, Mark; Palacios, Robert
    Pension and social insurance programs that prevent a substantial loss in consumption resulting from old age, disability, or death are an integral part of any social protection system. The dual objectives of such programs are to allow for the prevention of a sharp decline in income when these life-cycle events take place and protection against poverty in old age. This background paper reviews the World Bank's conceptual framework for the analysis of pension programs and defines the major challenges facing low and middle income countries, namely, coverage, adequacy and sustainability. The paper proposes a broad, forward-looking strategy to help address these challenges.
  • Publication
    Ukraine Poverty Update
    (Washington, DC, 2007-06-20) World Bank
    Ukraine recorded one of the sharpest declines in poverty of any transition economy in recent years. The poverty rate, measured against an absolute poverty line, fell from a high of 32 percent in 2001 to 14 percent in 2004, and then again to 8 percent in 2005. This Update presents simulations of the direct influence of an increase in energy prices on the poverty rate. Using 2005 as a base period, the simulations estimate the poverty rates that might result from alternative increases in the price of energy. In this simple model, the main determinant of the impact of the increase in energy prices on poverty is the share of energy in total household expenditures. An increase in energy prices will harm the poor slightly more than the rich because the poor have a slightly higher share of energy in their expenditures.
  • Publication
    Albania : Social Safety Net Review
    (Washington, DC, 2004-12-29) World Bank
    In 1989, Albania's rigid political and socioeconomic structure shattered beyond repair. Turbulence soon invaded every domain of life. As the state imploded, so did the state-run economy. This review explores ongoing consequences of this difficult transformation that took place since 1989 and of policy initiatives to mitigate or ameliorate its effects. Albania has been much studied; the review addresses important information gaps. It establishes, from the representative 2002 Living Standards Measurement Survey (LSMS), which kinds of families receive public income transfers and private income flows in what amounts and from what sources. It estimates the impact that these public and private income flows have in mitigating pre-transfer and post-transfer poverty among households. It does this by type of family and source of income flow, for all Albanian households and for various subsets of them. This review analyzes the relative importance of pensions and social assistance in alleviating poverty among rural households with aged members. This review also documents and links data on expenditures under social programs with data on program beneficiaries for recent years and it identifies current tradeoffs among the multiple objectives of social safety net policies, including those relating to coverage, adequacy, work incentives, equity, and effective government spending. Finally, it suggests options for future development of social safety net policies, including ways to strengthen overall policy linkages and programmatic coordination among social programs.
  • Publication
    Romania : Considering Options for Extending Social Protection Coverage to Elderly Farmers
    (Washington, DC, 2011-04) World Bank
    The Romanian government recognizes that there are current and future problems related to the risk of old-age poverty among elderly farmers, and has been working on sustainable solutions to avert this risk. The main objective of this report is to provide recommendations to the policy makers in Romania in designing a non-contributory program for poor elderly, including farmers. To this end, the report (i) evaluates the current semi-subsistence farming structure and the income situation of farmers in Romania, including access to EU support programs; (ii) provides an overview of the social protection currently available to elderly farmers in Romania through the existing social insurance and social assistance system; and (iii) presents options for a non-contributory scheme for the elderly poor, including farmers, and analyzes the fiscal and poverty impact and the administrative feasibility of each option.
  • Publication
    Madagascar : Three Years into the Crisis
    (World Bank Group, Washington, DC, 2014-05) Auffret, Philippe
    Madagascar is one of the poorest countries in the world and a very high proportion of the population experiences frequent shocks, whether from natural disasters, economic shocks or internal crises of governance. As a consequence, about half the country s population is undernourished. Children between the ages of 6 and 14 face the risks of low human capital development, child labor and marginalization. On the other hand, the Government of Madagascar s commitment to social protection as a national policy was never fully effective. Interventions in social protection have been developed on an ad-hoc basis, often on the initiative of donors. In order to inform the government s policy development, the report proposes a social protection strategy that increases the protection of the population while decreasing its vulnerability, taking into account the existing programs and the differences in exposure to risks between population groups recommendations that emerge from the research.

Users also downloaded

Showing related downloaded files

  • Publication
    Global Economic Prospects, January 2025
    (Washington, DC: World Bank, 2025-01-16) World Bank
    Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.
  • Publication
    Global Economic Prospects, June 2024
    (Washington, DC: World Bank, 2024-06-11) World Bank
    After several years of negative shocks, global growth is expected to hold steady in 2024 and then edge up in the next couple of years, in part aided by cautious monetary policy easing as inflation gradually declines. However, economic prospects are envisaged to remain tepid, especially in the most vulnerable countries. Risks to the outlook, while more balanced, are still tilted to the downside, including the possibility of escalating geopolitical tensions, further trade fragmentation, and higher-for-longer interest rates. Natural disasters related to climate change could also hinder activity. Subdued growth prospects across many emerging market and developing economies and continued risks underscore the need for decisive policy action at the global and national levels. Global Economic Prospects is a World Bank Group Flagship Report that examines global economic developments and prospects, with a special focus on emerging market and developing economies, on a semiannual basis (in January and June). Each edition includes analytical pieces on topical policy challenges faced by these economies.
  • Publication
    World Bank Annual Report 2024
    (Washington, DC: World Bank, 2024-10-25) World Bank
    This annual report, which covers the period from July 1, 2023, to June 30, 2024, has been prepared by the Executive Directors of both the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)—collectively known as the World Bank—in accordance with the respective bylaws of the two institutions. Ajay Banga, President of the World Bank Group and Chairman of the Board of Executive Directors, has submitted this report, together with the accompanying administrative budgets and audited financial statements, to the Board of Governors.
  • Publication
    Digital Progress and Trends Report 2023
    (Washington, DC: World Bank, 2024-03-05) World Bank
    Digitalization is the transformational opportunity of our time. The digital sector has become a powerhouse of innovation, economic growth, and job creation. Value added in the IT services sector grew at 8 percent annually during 2000–22, nearly twice as fast as the global economy. Employment growth in IT services reached 7 percent annually, six times higher than total employment growth. The diffusion and adoption of digital technologies are just as critical as their invention. Digital uptake has accelerated since the COVID-19 pandemic, with 1.5 billion new internet users added from 2018 to 2022. The share of firms investing in digital solutions around the world has more than doubled from 2020 to 2022. Low-income countries, vulnerable populations, and small firms, however, have been falling behind, while transformative digital innovations such as artificial intelligence (AI) have been accelerating in higher-income countries. Although more than 90 percent of the population in high-income countries was online in 2022, only one in four people in low-income countries used the internet, and the speed of their connection was typically only a small fraction of that in wealthier countries. As businesses in technologically advanced countries integrate generative AI into their products and services, less than half of the businesses in many low- and middle-income countries have an internet connection. The growing digital divide is exacerbating the poverty and productivity gaps between richer and poorer economies. The Digital Progress and Trends Report series will track global digitalization progress and highlight policy trends, debates, and implications for low- and middle-income countries. The series adds to the global efforts to study the progress and trends of digitalization in two main ways: · By compiling, curating, and analyzing data from diverse sources to present a comprehensive picture of digitalization in low- and middle-income countries, including in-depth analyses on understudied topics. · By developing insights on policy opportunities, challenges, and debates and reflecting the perspectives of various stakeholders and the World Bank’s operational experiences. This report, the first in the series, aims to inform evidence-based policy making and motivate action among internal and external audiences and stakeholders. The report will bring global attention to high-performing countries that have valuable experience to share as well as to areas where efforts will need to be redoubled.
  • Publication
    Business Ready 2024
    (Washington, DC: World Bank, 2024-10-03) World Bank
    Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.