The Composition of Growth Matters for Poverty Alleviation

Loayza, Norman V.; Raddatz, Claudio

doi:10.1596/1813-9450-4077

The Composition of Growth Matters for Poverty Alleviation

collection.link.5	https://openknowledge.worldbank.org/handle/10986/9
collection.name.5	Policy Research Working Papers
dc.contributor.author	Loayza, Norman V.
dc.contributor.author	Raddatz, Claudio
dc.date.accessioned	2012-06-22T20:12:33Z
dc.date.available	2012-06-22T20:12:33Z
dc.date.issued	2006-12
dc.date.lastModified	2021-04-23T14:02:41Z
dc.description.abstract	This paper contributes to explain the cross-country heterogeneity of the poverty response to changes in economic growth. It does so by focusing on the structure of output growth. The paper presents a two-sector theoretical model that clarifies the mechanism through which the sectoral composition of growth and associated labor intensity can affect workers' wages and, thus, poverty alleviation. Then it presents cross-country empirical evidence that analyzes first, the differential poverty-reducing impact of sectoral growth at various levels of disaggregation, and the role of unskilled labor intensity in such differential impact. The paper finds evidence that not only the size of economic growth but also its composition matters for poverty alleviation, with the largest contributions from labor-intensive sectors (such as agriculture, construction, and manufacturing). The results are robust to the influence of outliers, alternative explanations, and various poverty measures.	en
dc.identifier	http://documents.worldbank.org/curated/en/2006/12/7245823/composition-growth-matters-poverty-alleviation
dc.identifier.uri	http://hdl.handle.net/10986/8857
dc.language	English
dc.language.iso	en_US
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Policy Research Working Paper; No. 4077
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	ABUSE
dc.subject	AGGREGATE GROWTH
dc.subject	AGGREGATE OUTPUT
dc.subject	AGRICULTURAL GROWTH
dc.subject	CHANGES IN POVERTY
dc.subject	COBB-DOUGLAS PRODUCTION FUNCTION
dc.subject	CONSIDERABLE DISPERSION
dc.subject	CONSTANT RETURNS
dc.subject	COUNTRY SPECIFIC
dc.subject	DEPENDENT VARIABLE
dc.subject	DEVELOPING COUNTRIES
dc.subject	DISTRIBUTION DATA
dc.subject	ECONOMIC ACTIVITY
dc.subject	ECONOMIC CONDITIONS
dc.subject	ECONOMIC GROWTH
dc.subject	ELASTICITY OF SUBSTITUTION
dc.subject	EMPIRICAL EVIDENCE
dc.subject	EMPIRICAL LITERATURE
dc.subject	EMPIRICAL SECTION
dc.subject	EMPLOYMENT
dc.subject	ESTIMATION RESULTS
dc.subject	EXCHANGE RATE
dc.subject	EXPLANATORY VARIABLES
dc.subject	FIXED EFFECTS
dc.subject	GINI COEFFICIENT
dc.subject	GROWTH ^ RATE
dc.subject	GROWTH EFFECT
dc.subject	GROWTH ELASTICITY
dc.subject	GROWTH PATH
dc.subject	GROWTH RATE
dc.subject	GROWTH RATES
dc.subject	GROWTH RELATIONSHIP
dc.subject	HEADCOUNT POVERTY
dc.subject	HIGHER INEQUALITY
dc.subject	HOUSEHOLD DATA
dc.subject	HOUSEHOLD INCOME
dc.subject	HOUSEHOLD SURVEY
dc.subject	HOUSEHOLD SURVEYS
dc.subject	HUMAN CAPITAL
dc.subject	IMPACT ON POVERTY REDUCTION
dc.subject	INCIDENCE OF POVERTY
dc.subject	INCOME DISTRIBUTION
dc.subject	INCOME GROWTH
dc.subject	INCOME INEQUALITY
dc.subject	INDIVIDUAL COUNTRIES
dc.subject	INDUSTRIAL SECTOR
dc.subject	INTERMEDIATE GOODS
dc.subject	LABOR INTENSITIES
dc.subject	LABOR INTENSITY
dc.subject	LABOR MARKET
dc.subject	LABOR MARKETS
dc.subject	LABOR MOBILITY
dc.subject	LABOR REALLOCATION
dc.subject	LABOR SHARE
dc.subject	LABOR-INTENSIVE GROWTH
dc.subject	LEVEL OF TECHNOLOGY
dc.subject	LITERACY RATES
dc.subject	MEAN INCOME
dc.subject	MEAN INCOME GROWTH
dc.subject	MORTALITY
dc.subject	NATIONAL ACCOUNTS
dc.subject	0 HYPOTHESIS
dc.subject	OUTPUT GROWTH
dc.subject	POLICY CIRCLES
dc.subject	POLICY RESEARCH
dc.subject	POLICY RESEARCH WORKING PAPER
dc.subject	POOR COUNTRIES
dc.subject	POOR HOUSEHOLDS
dc.subject	POOR INDIVIDUALS
dc.subject	POVERTY ALLEVIATION
dc.subject	POVERTY CHANGE
dc.subject	POVERTY CHANGES
dc.subject	POVERTY DATA
dc.subject	POVERTY GAP
dc.subject	POVERTY LEVEL
dc.subject	POVERTY LINE
dc.subject	POVERTY MEASURE
dc.subject	POVERTY MEASURES
dc.subject	POVERTY REDUCING
dc.subject	POVERTY REDUCTION
dc.subject	PRO POOR
dc.subject	PRODUCTION FUNCTION
dc.subject	PRODUCTION GROWTH
dc.subject	REAL WAGE
dc.subject	REAL WAGES
dc.subject	RELATIVE PRICES
dc.subject	RESPECT
dc.subject	RURAL AREAS
dc.subject	SECTOR MODEL
dc.subject	SECTORAL COMPOSITION
dc.subject	SECTORAL GROWTH RATES
dc.subject	SERVICE SECTORS
dc.subject	SHARE OF LABOR
dc.subject	SQUARED POVERTY GAP
dc.subject	TECHNOLOGICAL PROGRESS
dc.subject	TOTAL EMPLOYMENT
dc.subject	TOTAL OUTPUT
dc.subject	UNEQUAL COUNTRIES
dc.subject	UNSKILLED LABOR
dc.subject	UNSKILLED WORKERS
dc.subject	URBANIZATION
dc.subject	UTILITY FUNCTION
dc.subject	WAGE INCREASE
dc.subject	WAGE EQUALIZATION
dc.subject	WAGE GAINS
dc.subject	WAGE GROWTH
dc.subject	WAGE RATE
dc.subject	WORKER
dc.subject	WORKERS
dc.title	The Composition of Growth Matters for Poverty Alleviation	en
okr.crosscuttingsolutionarea	Jobs
okr.doctype	Publications & Research :: Policy Research Working Paper
okr.doctype	Publications & Research
okr.docurl	http://documents.worldbank.org/curated/en/2006/12/7245823/composition-growth-matters-poverty-alleviation
okr.globalpractice	Macroeconomics and Fiscal Management
okr.globalpractice	Social, Urban, Rural and Resilience
okr.globalpractice	Social Protection and Labor
okr.globalpractice	Poverty
okr.globalpractice	Health, Nutrition, and Population
okr.googlescholar.linkpresent	yes
okr.identifier.doi	10.1596/1813-9450-4077
okr.identifier.externaldocumentum	000016406_20061205152514
okr.identifier.internaldocumentum	7245823
okr.identifier.report	WPS4077
okr.language.supported	en
okr.pdfurl	http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/12/05/000016406_20061205152514/Rendered/PDF/wps4077.pdf	en
okr.topic	Poverty Reduction :: Achieving Shared Growth
okr.topic	Health, Nutrition and Population :: Population Policies
okr.topic	Poverty Reduction :: Rural Poverty Reduction
okr.topic	Social Protections and Labor :: Labor Markets
okr.topic	Macroeconomics and Economic Growth :: Economic Growth
okr.topic	Health, Nutrition and Population
okr.topic	Rural Development
okr.unit	Development Research Group (DECRG)

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