Working Paper

The Consumption, Income, and Wealth of the Poorest : Cross-Sectional Facts of Rural and Urban Sub-Saharan Africa for Macroeconomists

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
De Magalhaes, Leandro
dc.contributor.author
Santaeulalia-Llopis, Raul
dc.date.accessioned
2015-07-17T19:06:52Z
dc.date.available
2015-07-17T19:06:52Z
dc.date.issued
2015-06
dc.date.lastModified
2021-04-23T14:04:07Z
dc.description.abstract
This paper provides new empirical insights on the joint distribution of consumption, income, and wealth in three of the poorest countries in the world — Malawi, Tanzania, and Uganda — all located in Sub-Saharan Africa (SSA). The first finding is that while income inequality is similar to that of the United States (US), wealth inequality is barely one-third that of the US. Similarly, while the top of the income distribution (1 and 10 percent) earns a similar share of total income in SSA as in the US, the share of total wealth accumulated by the income-rich in SSA is one-fifth of its US counterpart. The main contributions of the paper are to document: (i) this dwarfed transmission from income to wealth, which suggests that SSA households face a larger inability to save and accumulate wealth compared with US households; and (ii) a lower transmission from income to consumption inequality, which suggests the presence of powerful institutions that favor consumption insurance to the detriment of saving. These features are more relevant for rural areas, which represent roughly four-fifths of the total population. The paper identifies the few successful pockets of the SSA population that are able to accumulate wealth by exploring sources of inequality such as age, education, migration, borrowing ability, and societal systems.
en
dc.identifier
http://documents.worldbank.org/curated/en/2015/06/24703810/consumption-income-wealth-poorest-cross-sectional-facts-rural-urban-sub-saharan-africa-macroeconomists
dc.identifier.uri
http://hdl.handle.net/10986/22218
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 7337
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
LIVING STANDARDS
dc.subject
PER CAPITA CONSUMPTION
dc.subject
FORECASTS
dc.subject
RISKS
dc.subject
HOUSEHOLD SIZE
dc.subject
HOUSEHOLD SURVEY
dc.subject
ECONOMIC GROWTH
dc.subject
PRODUCTION
dc.subject
VALUATION
dc.subject
DISPOSABLE INCOME
dc.subject
FOOD CONSUMPTION
dc.subject
INCOME
dc.subject
CONSUMPTION BEHAVIOR
dc.subject
AGRICULTURAL PRODUCTION
dc.subject
CONSUMPTION INSURANCE
dc.subject
INTEREST RATE
dc.subject
PROPERTY RIGHTS
dc.subject
COUNTERFACTUAL
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POLITICAL ECONOMY
dc.subject
DEATH
dc.subject
PORTFOLIO
dc.subject
WELFARE
dc.subject
RURAL CREDIT
dc.subject
INCENTIVES
dc.subject
DISTRIBUTION
dc.subject
VARIABLES
dc.subject
INCOME GAP
dc.subject
INPUTS
dc.subject
PAYMENTS
dc.subject
WEALTH
dc.subject
RURAL POPULATION
dc.subject
CALORIC INTAKE
dc.subject
MEASURES
dc.subject
SAFETY NETS
dc.subject
DEVELOPMENT
dc.subject
LAND LAW
dc.subject
RURAL POPULATIONS
dc.subject
SAVINGS
dc.subject
RURAL HOUSEHOLD
dc.subject
COSTS
dc.subject
RURAL HOUSEHOLDS
dc.subject
DEVELOPMENT ECONOMICS
dc.subject
HOUSEHOLD HEAD
dc.subject
RURAL INCOME
dc.subject
RENT
dc.subject
FOOD PRICE
dc.subject
INEQUALITY MEASURES
dc.subject
INCOME INEQUALITY
dc.subject
EXCHANGE RATES
dc.subject
INDUSTRIALIZATION
dc.subject
TRANSFERS
dc.subject
DEBT
dc.subject
HOUSEHOLD COMPOSITION
dc.subject
HOUSEHOLD INCOME
dc.subject
HOUSEHOLD SURVEYS
dc.subject
LOTTERY
dc.subject
SOCIAL SECURITY
dc.subject
CALORIE INTAKE
dc.subject
FARMERS
dc.subject
RISK SHARING
dc.subject
LAND DISTRIBUTION
dc.subject
LAND VALUE
dc.subject
RURAL MIGRANTS
dc.subject
HOUSEHOLD HEADS
dc.subject
FOOD PRODUCTION
dc.subject
ECONOMIC RESEARCH
dc.subject
FOOD ITEMS
dc.subject
ALTERNATIVE USE
dc.subject
INCOME MEASURES
dc.subject
RURAL GAP
dc.subject
EQUILIBRIUM ANALYSIS
dc.subject
CONSUMPTION
dc.subject
AGRICULTURAL SHOCKS
dc.subject
SOCIAL SAFETY NETS
dc.subject
HUMAN CAPITAL
dc.subject
FOOD SECURITY
dc.subject
RURAL COUNTERPARTS
dc.subject
CAPITAL
dc.subject
WAGES
dc.subject
RURAL MIGRATION
dc.subject
VALUE
dc.subject
LAND QUALITY
dc.subject
RURAL AREA
dc.subject
CREDIT
dc.subject
MACROECONOMICS
dc.subject
FARM ACTIVITIES
dc.subject
POOR COUNTRIES
dc.subject
CONSUMER PRICE INDEXES
dc.subject
INCOME DISTRIBUTION
dc.subject
RURAL SETTINGS
dc.subject
AGRICULTURE
dc.subject
AGRICULTURAL LAND
dc.subject
GROWTH MODELS
dc.subject
RURAL
dc.subject
MEASUREMENT
dc.subject
SHARES
dc.subject
FARM WORK
dc.subject
ASSETS
dc.subject
PUBLIC WORKS
dc.subject
FOOD TRANSFERS
dc.subject
BENCHMARK
dc.subject
IDIOSYNCRATIC SHOCKS
dc.subject
AGRICULTURAL INPUTS
dc.subject
ECONOMIC INEQUALITY
dc.subject
INSURANCE
dc.subject
RURAL RESIDENTS
dc.subject
TRADE
dc.subject
CONSUMPTION SMOOTHING
dc.subject
THEORY
dc.subject
FOOD SHARE
dc.subject
GENERAL EQUILIBRIUM ANALYSIS
dc.subject
GROWTH RATE
dc.subject
RURAL AREAS
dc.subject
POVERTY
dc.subject
CREDIT MARKET CONSTRAINTS
dc.subject
HOUSEHOLD CONSUMPTION
dc.subject
INFORMAL INSURANCE
dc.subject
HUMAN CAPITAL INVESTMENT
dc.subject
SUBSISTENCE ECONOMY
dc.subject
UNDERESTIMATES
dc.subject
POOR
dc.subject
INCOME QUINTILE
dc.subject
PRICE INDEXES
dc.subject
INHERITANCE
dc.subject
FOOD PRICES
dc.subject
OUTCOMES
dc.subject
CONSUMPTION INCREASES
dc.subject
MIDDLE INCOME COUNTRIES
dc.subject
PRICES
dc.subject
ECONOMIC STATISTICS
dc.subject
PRODUCTION COSTS
dc.subject
DEVELOPMENT POLICY
dc.subject
INCOME GROUPS
dc.subject
INEQUALITY
dc.subject
POOR HOUSEHOLDS
dc.title
The Consumption, Income, and Wealth of the Poorest
en
dc.title.subtitle
Cross-Sectional Facts of Rural and Urban Sub-Saharan Africa for Macroeconomists
en
dc.type
Working Paper
en
okr.date.disclosure
2015-06-25
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/2015/06/24703810/consumption-income-wealth-poorest-cross-sectional-facts-rural-urban-sub-saharan-africa-macroeconomists
okr.globalpractice
Poverty
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-7337
okr.identifier.externaldocumentum
090224b082f931ac_2_0
okr.identifier.internaldocumentum
24703810
okr.identifier.report
WPS7337
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/06/26/090224b082f931ac/2_0/Rendered/PDF/The0consumptio00for0macroeconomists.pdf
en
okr.region.administrative
Africa
okr.region.country
Malawi
okr.region.country
Tanzania
okr.region.country
Uganda
okr.topic
Macroeconomics and Economic Growth :: Economic Investment & Savings
okr.topic
Poverty Reduction :: Inequality
okr.topic
Macroeconomics and Economic Growth :: Consumption
okr.topic
Poverty Reduction :: Rural Poverty Reduction
okr.topic
Social Protections and Labor :: Social Protections & Assistance
okr.unit
Poverty and Inequality Team, Development Research Group

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