Policy Options for Poverty Alleviation

This work builds on previous research to develop a methodology that simplifies the identification of the best policy options for poverty alleviation in a given country. When a population can be divided into subgroups according to an easily identifiable characteristic, the problem of alleviating poverty through a targeted mechanism can be viewed as one of choosing of three options: (i) provoking a marginal change in the average income of certain subgroups; (ii) changing the resource distribution within marginal subgroups; and (iii) generating a marginal change in the differences between the subgroups. Recent data from Mexico is applied. Note: This paper is published as Chapter 6 in Székely, M. "The Economics of Poverty, Inequality and Wealth Accumulation in Mexico", MacMillan, London, 1998.

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Bibliographic Details
Main Author: Inter-American Development Bank
Other Authors: Miguel Székely
Format: Working Papers biblioteca
Language:English
Published: Inter-American Development Bank
Subjects:Poverty, Economy, WP-342,
Online Access:http://dx.doi.org/10.18235/0010754
https://publications.iadb.org/en/policy-options-poverty-alleviation
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Summary:This work builds on previous research to develop a methodology that simplifies the identification of the best policy options for poverty alleviation in a given country. When a population can be divided into subgroups according to an easily identifiable characteristic, the problem of alleviating poverty through a targeted mechanism can be viewed as one of choosing of three options: (i) provoking a marginal change in the average income of certain subgroups; (ii) changing the resource distribution within marginal subgroups; and (iii) generating a marginal change in the differences between the subgroups. Recent data from Mexico is applied. Note: This paper is published as Chapter 6 in Székely, M. "The Economics of Poverty, Inequality and Wealth Accumulation in Mexico", MacMillan, London, 1998.