Is Labor Income Responsible for Poverty Reduction? A Decomposition Approach

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Azevedo, Joao Pedro
dc.contributor.author
Inchauste, Gabriela
dc.contributor.author
Olivieri, Sergio
dc.contributor.author
Saavedra, Jaime
dc.contributor.author
Winkler, Hernan
dc.date.accessioned
2013-09-04T14:59:02Z
dc.date.available
2013-09-04T14:59:02Z
dc.date.issued
2013-04
dc.description.abstract
Demographics, labor income, public transfers, or remittances: Which factor contributes the most to observed reductions in poverty? Using counterfactual simulations, this paper accounts for the contribution labor income has made to the observed changes in poverty over the past decade for a set of 16 countries that have experienced substantial declines in poverty. In contrast to methods that focus on aggregate summary statistics, the analysis generates entire counterfactual distributions that allow assessing the contributions of different factors to observed distributional changes. Decompositions across all possible paths are calculated so the estimates are not subject to path-dependence. The analysis shows that for most countries in the sample, labor income is the most important contributor to changes in poverty. In ten of the countries, labor income explains more than half of the change in moderate poverty; in another four, it accounts for more than 40 percent of the reduction in poverty. Although public and private transfers were relatively more important in explaining the reduction in extreme poverty, more and better-paying jobs were the key factors behind poverty reduction over the past decade.
en
dc.identifier.uri
http://hdl.handle.net/10986/15552
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 6414
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
CASH TRANSFER PROGRAMS
dc.subject
CASH TRANSFERS
dc.subject
CHANGES IN POVERTY
dc.subject
CONSUMPTION AGGREGATE
dc.subject
CONSUMPTION EXPENDITURES
dc.subject
COUNTERFACTUAL
dc.subject
DECLINE IN POVERTY
dc.subject
DECOMPOSABLE POVERTY
dc.subject
DECOMPOSITION METHODOLOGY
dc.subject
DECOMPOSITION TECHNIQUES
dc.subject
ECONOMIC GROWTH
dc.subject
EMPLOYMENT OF WOMEN
dc.subject
EXTREME POVERTY
dc.subject
FAMILY INCOME
dc.subject
FAMILY MEMBERS
dc.subject
HOUSEHOLD CONSUMPTION
dc.subject
HOUSEHOLD CONSUMPTION PER CAPITA
dc.subject
HOUSEHOLD INCOME
dc.subject
HOUSEHOLD PER CAPITA INCOME
dc.subject
HOUSEHOLD SURVEY
dc.subject
HOUSEHOLD SURVEYS
dc.subject
INCOME
dc.subject
INCOME DISTRIBUTION
dc.subject
INCOME DYNAMICS
dc.subject
INCOME GROWTH
dc.subject
INCOME INEQUALITY
dc.subject
INEQUALITY
dc.subject
INTERNATIONAL POVERTY LINE
dc.subject
INTERNATIONAL POVERTY LINES
dc.subject
NUTRITION
dc.subject
PER CAPITA CONSUMPTION
dc.subject
POLITICAL ECONOMY
dc.subject
POOR
dc.subject
POVERTY ACROSS COUNTRIES
dc.subject
POVERTY DYNAMICS
dc.subject
POVERTY GAP
dc.subject
POVERTY GAP INDEX
dc.subject
POVERTY HEADCOUNT RATE
dc.subject
POVERTY HEADCOUNT RATES
dc.subject
POVERTY INCIDENCE
dc.subject
POVERTY MEASURES
dc.subject
POVERTY OUTCOMES
dc.subject
POVERTY RATE
dc.subject
POVERTY RATES
dc.subject
POVERTY REDUCTION
dc.subject
POVERTY SEVERITY
dc.subject
PRIVATE TRANSFERS
dc.subject
REDUCTION IN POVERTY
dc.subject
REGIONAL POVERTY
dc.subject
RURAL
dc.subject
RURAL INCOME
dc.subject
SAVINGS
dc.subject
SOCIAL POLICIES
dc.subject
SOCIAL PROTECTION
dc.subject
TOTAL POVERTY
dc.subject
TRANSFER PROGRAMS
dc.subject
WELFARE MEASURE
dc.title
Is Labor Income Responsible for Poverty Reduction? A Decomposition Approach
en
okr.date.disclosure
2013-04-01
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/2013/04/17599289/labor-income-responsible-poverty-reduction-decomposition-approach
okr.globalpractice
Macroeconomics and Fiscal Management
okr.globalpractice
Poverty
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-6414
okr.identifier.externaldocumentum
000158349_20130418083935
okr.identifier.internaldocumentum
17599289
okr.identifier.report
WPS6414
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/04/18/000158349_20130418083935/Rendered/PDF/wps6414.pdf
en
okr.topic
Services and Transfers to Poor
okr.topic
Poverty Reduction :: Rural Poverty Reduction
okr.topic
Macroeconomics and Economic Growth :: Regional Economic Development
okr.topic
Poverty Monitoring and Analysis
okr.unit
Development Research Group (DECRG)
okr.volume
1 of 1

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