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
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dc.contributor.author
Inchauste, Gabriela
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dc.contributor.author
Olivieri, Sergio
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dc.contributor.author
Saavedra, Jaime
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dc.contributor.author
Winkler, Hernan
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dc.date.accessioned
2013-09-04T14:59:02Z
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dc.date.available
2013-09-04T14:59:02Z
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dc.date.issued
2013-04
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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.
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dc.identifier.uri
http://hdl.handle.net/10986/15552
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dc.language
English
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dc.language.iso
en_US
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dc.publisher
World Bank, Washington, DC
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dc.relation.ispartofseries
Policy Research Working Paper;No. 6414
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dc.rights
CC BY 3.0 IGO
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dc.rights.holder
World Bank
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dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
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dc.subject
CASH TRANSFER PROGRAMS
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dc.subject
CASH TRANSFERS
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dc.subject
CHANGES IN POVERTY
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dc.subject
CONSUMPTION AGGREGATE
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dc.subject
CONSUMPTION EXPENDITURES
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dc.subject
COUNTERFACTUAL
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dc.subject
DECLINE IN POVERTY
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dc.subject
DECOMPOSABLE POVERTY
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dc.subject
DECOMPOSITION METHODOLOGY
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dc.subject
DECOMPOSITION TECHNIQUES
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dc.subject
ECONOMIC GROWTH
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dc.subject
EMPLOYMENT OF WOMEN
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dc.subject
EXTREME POVERTY
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dc.subject
FAMILY INCOME
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dc.subject
FAMILY MEMBERS
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dc.subject
HOUSEHOLD CONSUMPTION
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dc.subject
HOUSEHOLD CONSUMPTION PER CAPITA
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dc.subject
HOUSEHOLD INCOME
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dc.subject
HOUSEHOLD PER CAPITA INCOME
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dc.subject
HOUSEHOLD SURVEY
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dc.subject
HOUSEHOLD SURVEYS
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dc.subject
INCOME
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dc.subject
INCOME DISTRIBUTION
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dc.subject
INCOME DYNAMICS
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dc.subject
INCOME GROWTH
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dc.subject
INCOME INEQUALITY
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dc.subject
INEQUALITY
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dc.subject
INTERNATIONAL POVERTY LINE
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dc.subject
INTERNATIONAL POVERTY LINES
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dc.subject
NUTRITION
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dc.subject
PER CAPITA CONSUMPTION
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dc.subject
POLITICAL ECONOMY
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dc.subject
POOR
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dc.subject
POVERTY ACROSS COUNTRIES
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dc.subject
POVERTY DYNAMICS
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dc.subject
POVERTY GAP
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dc.subject
POVERTY GAP INDEX
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dc.subject
POVERTY HEADCOUNT RATE
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dc.subject
POVERTY HEADCOUNT RATES
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dc.subject
POVERTY INCIDENCE
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dc.subject
POVERTY MEASURES
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dc.subject
POVERTY OUTCOMES
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dc.subject
POVERTY RATE
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dc.subject
POVERTY RATES
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dc.subject
POVERTY REDUCTION
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dc.subject
POVERTY SEVERITY
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dc.subject
PRIVATE TRANSFERS
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REDUCTION IN POVERTY
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dc.subject
REGIONAL POVERTY
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dc.subject
RURAL
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dc.subject
RURAL INCOME
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dc.subject
SAVINGS
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dc.subject
SOCIAL POLICIES
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dc.subject
SOCIAL PROTECTION
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dc.subject
TOTAL POVERTY
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dc.subject
TRANSFER PROGRAMS
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dc.subject
WELFARE MEASURE
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dc.title
Is Labor Income Responsible for Poverty Reduction? A Decomposition Approach
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okr.date.disclosure
2013-04-01
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okr.doctype
Publications & Research :: Policy Research Working Paper
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okr.doctype
Publications & Research
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okr.docurl
http://documents.worldbank.org/curated/en/2013/04/17599289/labor-income-responsible-poverty-reduction-decomposition-approach
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okr.globalpractice
Macroeconomics and Fiscal Management
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okr.globalpractice
Poverty
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okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-6414
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okr.identifier.externaldocumentum
000158349_20130418083935
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okr.identifier.internaldocumentum
17599289
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okr.identifier.report
WPS6414
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okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/04/18/000158349_20130418083935/Rendered/PDF/wps6414.pdf
en_US
okr.topic
Services and Transfers to Poor
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okr.topic
Poverty Reduction :: Rural Poverty Reduction
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okr.topic
Macroeconomics and Economic Growth :: Regional Economic Development
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okr.topic
Poverty Monitoring and Analysis
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okr.unit
Development Research Group (DECRG)
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okr.volume
1 of 1
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