Dollar, DavidKleineberg, TatjanaKraay, Aart2013-10-012013-10-012013-08https://hdl.handle.net/10986/16001Incomes in the poorest two quintiles on average increase at the same rate as overall average incomes. This is because, in a global dataset spanning 118 countries over the past four decades, changes in the share of income of the poorest quintiles are generally small and uncorrelated with changes in average income. The variation in changes in quintile shares is also small relative to the variation in growth in average incomes, implying that the latter accounts for most of the variation in income growth in the poorest quintiles. These findings hold across most regions and time periods and when conditioning on a variety of country-level factors that may matter for growth and inequality changes. This evidence confirms the central importance of economic growth for poverty reduction and illustrates the difficulty of identifying specific macroeconomic policies that are significantly associated with the relative growth rates of those in the poorest quintiles.en-USCC BY 3.0 IGOABSOLUTE POVERTYADVANCED ECONOMIESAGGREGATE GROWTHAGGREGATE INCOMEAGRICULTURAL PRODUCTIVITYAGRICULTUREANNUAL GROWTHANNUAL GROWTH RATEAVERAGE ANNUALAVERAGE ANNUAL GROWTHAVERAGE CHANGEAVERAGE GROWTHAVERAGE GROWTH RATEAVERAGE INCOMEAVERAGE INCOME GROWTHAVERAGE INCOMESBENCHMARKBLACK MARKETBLACK MARKET PREMIUMCAPITAL ACCOUNTCIVIL LIBERTIESCONSUMPTION GROWTHCOUNTRY LEVELCOUNTRY VARIATIONCOUNTRY-BY-COUNTRY BASISCROSS-COUNTRY INCOMECROSS-COUNTRY PANELDATA AVAILABILITYDEMOCRACYDEPENDENT VARIABLEDESCRIPTIVE STATISTICSDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING WORLDDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDEVELOPMENT RESEARCHDISPOSABLE INCOMEDISTRIBUTION OF INCOMEECONOMETRICSECONOMIC GROWTHECONOMIC POLICYECONOMIC REVIEWECONOMICSEDUCATIONAL ATTAINMENTEMERGING MARKETSEMPIRICAL ANALYSISEMPIRICAL FINDINGSEMPIRICAL GROWTH LITERATUREEMPIRICAL LITERATUREEMPIRICAL MODELSEMPIRICAL RESULTSESTIMATED COEFFICIENTEXCHANGE RATEEXPECTED VALUEEXPLANATORY POWEREXPLANATORY VARIABLESEXPORTSEXTREME POVERTYFINANCIAL DEPTHFINANCIAL SUPPORTFINANCIAL TRANSACTIONSFIRST YEARGDPGDP DEFLATORGINI COEFFICIENTGLOBALIZATIONGOVERNMENT BUDGETGOVERNMENT EXPENDITUREGROWTH CONTEXTGROWTH DETERMINANTSGROWTH EMPIRICSGROWTH EPISODESGROWTH LITERATUREGROWTH RATEGROWTH RATESGROWTH REGRESSIONSHETEROSKEDASTICITYHIGH INCOME COUNTRIESHIGH URBANIZATIONHOUSEHOLD SURVEYSINCOME DISTRIBUTIONINCOME DISTRIBUTIONSINCOME GROWTHINCOME INEQUALITYINCOME QUINTILESINCOME SHAREINCOME STUDYINDUSTRIAL COUNTRIESINEQUALITY CHANGESINEQUALITY MEASUREINEQUALITY MEASURESINFLATIONINFLATION RATELABOUR MARKETLIFE EXPECTANCYLIVING STANDARDSLOCAL CURRENCYLONG-TERM GROWTHLORENZ CURVEM2MACRO POLICYMACROECONOMIC POLICIESMACROECONOMIC STABILITYMACROECONOMICSMARKET REGULATIONMEAN CHANGEMEAN GROWTHMEAN INCOMEMEAN INCOME GROWTHMEAN INCOMESMEASUREMENT ERRORMICRO DATAMONOPOLYNATIONAL ACCOUNTSNATIONAL INCOME0 HYPOTHESISOUTPUTSPARTICULAR COUNTRIESPER CAPITA CONSUMPTIONPOLICY DISCUSSIONSPOLICY REFORMSPOLICY RESEARCHPOLITICAL RIGHTSPOLITICAL STABILITYPOPULATION GROWTHPOSITIVE CORRELATIONPOVERTY DEBATEPOVERTY ESTIMATESPOVERTY LINEPOVERTY LINESPOVERTY REDUCTIONPOWER PARITYPRIMARY ENROLLMENTPRIVATE CONSUMPTIONPRO-POORPUBLIC SECTORPUBLIC SPENDINGPURCHASING POWERRAPID GROWTHREDUCING INEQUALITYREGRESSION RESULTSRELATIVE IMPORTANCERELATIVE INCOMESRISING INCOME INEQUALITYRISING INEQUALITYSECTOR EMPLOYMENTSERIES DATASIGNIFICANT RELATIONSHIPSOCIAL SPENDINGSTANDARD DEVIATIONTAXTAX SYSTEMSTRADE OPENNESSURBAN AREASVALUE ADDEDWEALTHWorld Bank10.1596/1813-9450-6568