A Poverty-Inequality Trade-off?

The idea that developing countries face a trade-off between poverty and inequality has had considerable influence on thinking about development policy. The experience of developing countries in the 1990s does not, however, reveal any sign of a systematic trade-off between measures of absolute poverty and relative inequality. Indeed, falling inequality tends to come with falling poverty incidence. And rising inequality appears more likely to be putting a brake on poverty reduction than to be facilitating it. However, there is evidence of a trade-off for absolute inequality, suggesting that those who want a lower absolute gap between the rich and the poor must in general be willing to see lower absolute levels of living for poor people.

Bibliographic Details

Main Author:	Ravallion, Martin
Language:	English
Published:	World Bank, Washington, DC 2005-04
Subjects:	ABSOLUTE DIFFERENCE, ABSOLUTE POVERTY, ADJUSTMENT PERIOD, AVERAGE INCOME, COUNTRY LEVEL, DATA SET, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, DISTRIBUTIONAL EFFECT, ECONOMIC ACTIVITY, ECONOMIC GROWTH, ECONOMIC REFORM, ECONOMIC REVIEW, ECONOMIC THEORY, EMPIRICAL LITERATURE, EMPIRICAL PROBLEMS, EMPIRICAL RELATIONSHIP, EMPIRICAL RESULT, EMPIRICAL STUDIES, FALLING POVERTY, FINANCIAL FLOWS, GROWTH, GROWTH PRO-POOR, GROWTH RATES, HOUSEHOLD CONSUMPTION, HOUSEHOLD INCOME, HOUSEHOLD SURVEYS, INCOME, INCOME DISTRIBUTION, INCOME DISTRIBUTIONS, INCOME INEQUALITY, INCOME SHARE, INDIVIDUAL INCOMES, INEQUALITY, INEQUALITY MEASURE, INEQUALITY MEASUREMENT, INEQUALITY MEASURES, LINEAR REGRESSION, LIVING STANDARDS, LOG-NORMAL DISTRIBUTION, MARKET ECONOMY, MEAN INCOME, MEAN INCOMES, MEASUREMENT ERROR, MEASUREMENT ERRORS, MEASURING POVERTY, NEGATIVE CORRELATION, NEGATIVE RELATIONSHIP, PER CAPITA CONSUMPTION, POLICY DISCUSSIONS, POLICY ISSUES, POLICY RESEARCH, POOR COUNTRIES, POOR PEOPLE, POSITIVE COEFFICIENT, POSITIVE CORRELATION, POSITIVE GROWTH, POVERTY, POVERTY INCIDENCE, POVERTY LINE, POVERTY LINES, POVERTY MEASURE, POVERTY MEASURES, POVERTY RATE, POVERTY REDUCTION, POVERTY RISES, PRIVATE CONSUMPTION, PROPORTIONATE CHANGES, PUBLIC GOODS, PURCHASING POWER, PURCHASING POWER PARITY, QUALITY GROWTH, RAPID GROWTH, RELATIVE POVERTY, RISING INEQUALITY, SERIES DATA, TRANSITION ECONOMIES, URBANIZATION,
Online Access:	http://documents.worldbank.org/curated/en/2005/04/5780454/poverty-inequality-trade-off https://hdl.handle.net/10986/8928
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