McGavock, Tamara J.Rosenblatt, David2014-02-042014-02-042013-10https://hdl.handle.net/10986/16860One of the two goals of the World Bank Group's new strategy is to promote shared prosperity, defined as the income growth of the bottom 40 percent of the population. The simple monitoring indicator then is the income per capita of the bottom 40 percent of the population. The growth of this indicator can be decomposed into two components: the change in the share of total income accruing to the bottom 40 percent and the growth of the average income of the total population. This paper presents: (i) a brief discussion of the properties of the indicator; (ii) the simple decomposition in algebraic form; (iii) a graphical method for displaying the combinations of the two components of the decomposition; (iv) simulations of the decomposition for hypothetical countries; and (v) some illustrative data.en-USCC BY 3.0 IGOANNUAL GROWTHAVERAGE INCOMEAVERAGE INCOMESCOUNTRY DATACOUNTRY EXPERIENCESCROSS-COUNTRY DIFFERENCESDEMOCRACYDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT ECONOMICSDEVELOPMENT INDICATORSDEVELOPMENT POLICYDEVELOPMENT RESEARCHDIFFERENCES IN INCOMEDISTRIBUTION OF INCOMEECONOMIC GROWTHECONOMIC INEQUALITYECONOMIC POLICYEMERGING MARKETEMERGING MARKET ECONOMIESEMPIRICAL EVIDENCEEXTREME POVERTYGDPGDP PER CAPITAGINI COEFFICIENTGROWTH MODELGROWTH RATEGROWTH RATESHOUSEHOLD INCOMEHOUSEHOLD SURVEYSHUMAN DEVELOPMENTINCOMEINCOME DISTRIBUTIONINCOME GROWTHINCOME LEVELINCOME LEVELSINCOME SHAREINCOMESINEQUALITYINEQUALITY AVERSIONINEQUALITY MEASUREINEQUALITY MEASURESJOB CREATIONLIVING STANDARDSLOCAL CURRENCYLONG-RUN GROWTHLORENZ CURVENATURAL RESOURCENEGATIVE RELATIONSHIPNEGATIVE VALUEOLD ISSUESPER CAPITA GROWTHPER CAPITA INCOMEPOLICY DISCUSSIONSPOLICY IMPLICATIONSPOLICY RESEARCHPOORPOOR COUNTRIESPOOR COUNTRYPOOR PEOPLEPOPULATION GROWTHPOPULATION SHAREPOVERTY LEVELSPOVERTY LINEPOVERTY LINESPOVERTY MEASUREPOVERTY RATEPOWER PARITYPURCHASING POWERPURE GROWTHREDUCING INEQUALITYREDUCING POVERTYRELATIVE INEQUALITYRELATIVE ROLERICH COUNTRIESSIGNIFICANT EFFECTSOCIAL PROGRAMSWORLD DEVELOPMENT INDICATORSWorld Bank10.1596/1813-9450-6645