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"POVERTY CHANGE"
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Understanding changes in poverty
Understanding Changes in Poverty brings together different methods to decompose the contributions to poverty reduction. A simple approach quantifies the contribution of changes in demographics, employment, earnings, public transfers, and remittances to poverty reduction. A more complex approach quantifies the contributions to poverty reduction from changes in individual and household characteristics, including changes in the sectoral, occupational, and educational structure of the workforce, as well as changes in the returns to individual and household characteristics. Understanding Changes in Poverty implements these approaches and finds that labor income growththat is, growth in income per worker rather than an increase in the number of employed workerswas the largest contributor to moderate poverty reduction in 21 countries experiencing substantial reductions in poverty over the past decade. Changes in demographics, public transfers, and remittances helped, but made relatively smaller contributions to poverty reduction. Further decompositions in three countries find that labor income grew mainly because of higher returns to human capital endowments, signaling increases in productivity, higher relative price of labor, or both. Understanding Changes in Poverty will be of particular relevance to development practitioners interested in better understanding distributional changes over time. The methods and tools presented in this book can also be applied to better understand changes in inequality or any other distributional change.
eBook
The Impact of Socio-Economic and Climate Change on Poverty in Indonesia
Climate change can impact farmers’ incomes as agricultural production still depends on the weather. Currently, the majority of the impoverished rely primarily on agriculture for their income. The connection between poverty and climate change has been extensively studied, but further research is needed in this area. This research was conducted to provide empirical evidence regarding the impact of climate change on poverty using time series data, which has never been done. This research wants to examine the impact of socio-economics (economic growth, agricultural sector growth, inequality, inflation) and climate change on poverty. This research uses time series data from 2007 to 2022. The Central Bureau of Statistics and Climate Change Performance Index (CCPI) reports are the sources of research data. The study results suggest that the government’s performance index in combating inflation, agricultural sector growth, and climate change has a positive impact on poverty. Poverty is negatively affected by the Gini index and economic growth. Government efforts to adaptively address climate change are necessary to prevent worsening impacts on poverty rates. To reduce the risk of crop failure, farmers must also practice practical agricultural management.
Journal Article
Reducing poverty through growth and social policy reform in Russia
Following the 1998 financial crisis, four out of every ten people slipped into poverty, not able to meet basic needs. Luckily, post-crisis economic rebound was impressive and broad-based ? albeit uneven ? across sectors and regions. This title explores the nature of poverty, both nationally and regionally, to identify the groups with a high poverty risk. It then examines growth-poverty linkages through the labor market, as well as the contribution of growth and inequality to the recent poverty reduction. It also considers the expected impact of WTO accession on overall growth and poverty. Finally, it focuses on the scope for improving social policy in ways that will have a direct impact on the poor.
eBook
The great displacement : climate change and the next American migration
\"We think about the dangers of climate change in the future tense: that as global warming gets worse over the coming decades, millions of people will scatter around the world fleeing famine and rising seas. What we often don't realize is that the consequences of climate change are already visible, right here in the United States. Bittle shows that, from fire-scorched California to the soaked watersheds of inland North Carolina, people are moving. Insurance and mortgage markets are already shifting to reflect mounting climate risk, pricing people out of risky areas. He tells the stories of those already experiencing life on the move, and show how radically climate change will transform our lives--and reshape the geography of the United States.\"-- Adapted from jacket.
Book
Growth and poverty reduction : case studies from West Africa
This volume provides a set of six case studies from West Africa. These assess the benefits of growth (or the costs of a lack of growth) in terms of poverty reduction in those countries. The first part of this book describes the experience of two countries (Ghana and Senegal) that achieved high levels of growth in the 1990s, and that also experienced important reductions in poverty, even though growth was not strictly pro-poor. The second part describes the experience of two other countries (Burkina Faso and Cape Verde) that also achieved high levels of growth in the 1990s, but where there was an initial perception that growth did not lead to much poverty reduction. The more detailed analysis of poverty presented here suggests however that these two countries did witness a sharp reduction in their population share in poverty, as would have been expected given their growth record. Finally, in the third part, the authors argue that a lack of growth in the 1990s in Guinea-Bissau and Nigeria has been a key reason for their persistently high levels of poverty. Overall, the case studies in this Working Paper make a strong case for the positive impact of growth on poverty reduction in West Africa. However, they also point to the need to pay close attention to changes in inequality, because such changes have limited the gains from growth for the poor in several of the countries considered here.
eBook
A Three-Component Decomposition of the Change in Relative Poverty: An Application to China
China has eliminated absolute poverty and begun to tackle relative poverty, yet the change in relative poverty in China has been less studied. In this paper, we develop a three-component decomposition of the change in relative poverty and apply it to analyze the relative poverty in China. The change in relative poverty is decomposed into identification, growth, and redistribution components. We compare the three-component decomposition with other decomposition methods in the existing literature and show the advantages of the former. Our study, using the China Family Panel Studies (CFPS) 2010–2018 data, shows that relative poverty is rising. Examining the periods of 2012–2014, 2014–2016, and 2016–2018, we show that the three components differ in their contribution to relative poverty. The identification component rises with income growth and increases relative poverty by 8.42%, 12.19%, and 12.55%, respectively. The growth component reduces the incidence of relative poverty by 8.34%, 11.24%, and 12.18%, respectively. In comparison, the redistribution component increases the incidence of relative poverty by 2.88%, 1.12%, and 6.60%, respectively.
Journal Article
Understanding the poverty impact of the global financial crisis in Latin America and the Caribbean
This study documents the effects of the 2008–09 global financial crisis on poverty in Latin America and the Caribbean (LAC). In doing so, it describes and decomposes the effects of the crisis on poverty using data from comparable household budget surveys for Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Mexico, Paraguay, Peru, and Uruguay, and labor force surveys for Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, and Uruguay. The study also provides macro-micro modeling of crisis and no-crisis scenarios for Mexico and Brazil, as well as the big picture and program-specific details of the social protection policy responses for these countries and more. Among the findings are the following. First, the effects of the global financial crisis on those living in poverty were not trivial: more than 3 million people fell into or remained mired in poverty in 2009 as a result of the crisis. Of these, 2.5 million were Mexican. Second, the changes in poverty were driven by changes in labor incomes caused by a variable combination of changes in employment rates and real wages. Third, the macro-micro modeling revealed different adjustment mechanisms but similar final incidence results for Brazil and Mexico. The results were regressive overall, with the middle of the income distribution hit even a bit more than the poor. According to the descriptive results from the larger set of countries, changes in inequality accounted for a tenth to a third of changes in poverty. Fourth, countries were quite active in their social protection policy responses, largely taking advantage of programs built in precrisis years. Social transfers partially offset the lower labor earnings of the poor, although income protection for the unemployed was weak. Finally, overall the policy messages are that good policy helps attenuate the links between a global crisis and poverty in the LAC countries, and many of the important things need to be done ex ante such as dealing with the macro fundamentals and building social protection programs.
eBook