Which Inequality Matters? Growth Evidence Based on Small Area Welfare Estimates in Uganda

Existing empirical studies on the relation between inequality and growth have been criticized for their focus on income inequality and their use of cross-country data sets. Schipper and Hoogeveen use two sets of small area welfare estimates-often referred to as poverty maps-to estimate a model of rural per capita expenditure growth for Uganda between 1992 and 1999. They estimate the growth effects of expenditure and education inequality while controlling for other factors, such as initial levels of expenditure and human capital, family characteristics, and unobserved spatial heterogeneity. The authors correct standard errors to reflect the uncertainty due to the fact that they use estimates rather than observations. They find that per capita expenditure growth in rural Uganda is affected positively by the level of education as well as by the degree of education inequality. Expenditure inequality does not have a significant impact on growth.

Bibliographic Details

Main Authors:	Schipper, Youdi, Hoogeveen, Johannes G.
Language:	English
Published:	World Bank, Washington, DC 2005-05
Subjects:	ABSOLUTE POVERTY, ABSOLUTE VALUE, ANNUAL GROWTH, ASSET INEQUALITY, AVERAGE LEVEL, CITIZENS, CONDITIONAL CONVERGENCE, COUNTRY CASE, COUNTRY SPECIFIC, COUNTRY SPECIFICITY, COVARIANCE MATRIX, CROSS -COUNTRY INEQUALITY, CROSS-COUNTRY DATA, CROSS-COUNTRY STUDIES, DATA ISSUES, DATA SET, DATA SETS, DEPENDENT VARIABLE, DESCRIPTIVE STATISTICS, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, ECONOMETRIC ISSUES, ECONOMETRIC PROBLEMS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC INEQUALITY, ECONOMIC LITERATURE, ECONOMIC REVIEW, ECONOMICS LETTERS, EDUCATION LEVEL, EDUCATIONAL ATTAINMENT, EMPIRICAL EVIDENCE, EMPIRICAL GROWTH LITERATURE, EMPIRICAL RESEARCH, EMPIRICAL SECTION, EMPIRICAL STUDIES, ENDOGENOUS VARIABLE, ENDOGENOUS VARIABLES, ERROR TERM, ERROR TERMS, ESTIMATION TECHNIQUES, FIXED EFFECTS, FIXED EFFECTS ESTIMATOR, GINI COEFFICIENT, GROWTH EFFECT, GROWTH EMPIRICS, GROWTH IMPACT, GROWTH LITERATURE, GROWTH MODEL, GROWTH MODELS, GROWTH RATE, GROWTH REGRESSION, GROWTH REGRESSIONS, GROWTH THEORIES, HIGH-INEQUALITY DEVELOPING COUNTRIES, HOUSEHOLD DATA, HOUSEHOLD INCOME, HOUSEHOLD MEMBERS, HOUSEHOLD SIZE, HUMAN CAPITAL, INCOME, INCOME GROWTH, INCOME INEQUALITY, INEQUALITY, INEQUALITY CHANGE, INEQUALITY COEFFICIENT, INEQUALITY DATA, INEQUALITY EFFECT, INEQUALITY ESTIMATES, INEQUALITY INDICATORS, INEQUALITY MEASURE, INEQUALITY MEASURES, INEQUALITY REGRESSIONS, INEQUALITY SERIES, INEQUALITY VARIABLES, INVESTMENT OPPORTUNITIES, LAGGED VALUES, LAND INEQUALITY, LONG RUN, MACROECONOMIC IMPLICATIONS, MEAN EXPENDITURE, MEASUREMENT ERROR, MEASURING INCOME INEQUALITY, MICRO DATA, NEGATIVE CORRELATION, NEGATIVE EFFECT, NEGATIVE SIGN, NEW GROWTH THEORIES, OLD ISSUES, OUTPUT GROWTH, PAPERS, PER CAPITA EXPENDITURE, PER CAPITA GROWTH, POLICY MAKERS, POLICY RESEARCH, POLICY REVIEW, POSITIVE EFFECT, POVERTY CHANGE, POVERTY ESTIMATES, POVERTY INCIDENCE, POVERTY REDUCTION, POVERTY REDUCTION STRATEGIES, POVERTY-GROWTH-INEQUALITY TRIANGLE, PRIMARY EDUCATION, PRODUCTION FUNCTION, REGIONAL DUMMIES, REGRESSION ANALYSIS, REGRESSION RESULTS, SIGNIFICANCE LEVEL, SIGNIFICANT EFFECT, SIGNIFICANT IMPACT, SIGNIFICANT NEGATIVE, TRADE POLICY, UNEQUAL DISTRIBUTION,
Online Access:	http://documents.worldbank.org/curated/en/2005/05/5800534/inequality-matters-growth-evidence-based-small-area-welfare-estimates-uganda https://hdl.handle.net/10986/8937
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