eBook

Understanding the poverty impact of the global financial crisis in Latin America and the Caribbean

Bussolo, Maurizio, Freije, Samuel, Grosh, Margaret

2014

Overview

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.

• Publisher: THE WORLD BANK,World Bank,World Bank Publications,The World Bank,Washington, DC: World Bank
• Subject: 21st century / ACCOUNTING / ACTIVE LABOR / ACTIVE LABOR MARKET / ACTIVE LABOR MARKET POLICY / ADVISERS / AGGREGATE DEMAND / AGGREGATE EMPLOYMENT / AGGREGATE OUTPUT / ANNUAL CHANGE / ANNUAL GROWTH / ANNUAL GROWTH RATE / AVERAGE GROWTH / AVERAGE INCOME / AVERAGE INCOME GROWTH / AVERAGE PRODUCTIVITY / AVERAGE WAGES / BANKING CRISES / BANKING SYSTEMS / BASIS POINTS / BENCHMARK / BENEFICIARIES / BORROWING / BORROWING REQUIREMENTS / CAPITAL MARKETS / Caribbean Area / Caribbean Area -- Economic conditions -- 21st century / CASH TRANSFER / CASH TRANSFERS / CENTRAL BANKS / COMPENSATORY MEASURES / CONSUMER PREFERENCES / CROSS-SECTIONAL DATA / CURRENCY CRISES / CURRENCY MISMATCHES / DEBT / DEBT CRISIS / DEBT MARKETS / DEMAND CURVES / DEVELOPED COUNTRIES / DEVELOPED WORLD / DEVELOPING COUNTRIES / DEVELOPING REGIONS / DEVELOPMENT BANK / DEVELOPMENT ECONOMICS / DEVELOPMENT INDICATORS / DEVELOPMENT POLICY / DEVELOPMENT REPORT / DISTRIBUTIONAL IMPACT / DRIVERS / EARNINGS LOSS / ECONOMIC ACTIVITY / ECONOMIC CONDITIONS / ECONOMIC DOWNTURNS / ECONOMIC GROWTH / ECONOMIC POLICY / ECONOMIC SHOCK / ECONOMICS / ECONOMICS RESEARCH / ELASTICITY / ELASTICITY OF SUBSTITUTION / EMERGING ECONOMIES / EMPLOYMENT GROWTH / EMPLOYMENT PROGRAM / EMPLOYMENT SERVICES / EQUILIBRIUM / EXCHANGE RATE / EXCHANGE RATES / EXPENDITURE / EXPLAINING CHANGES / EXPORTS / EXTERNAL FACTORS / EXTREME POVERTY / FACTOR MARKETS / FEMALE EMPLOYMENT / FINANCIAL ASSETS / FINANCIAL CRISES / FINANCIAL CRISIS / FINANCIAL SYSTEMS / FISCAL POLICY / FIXED INVESTMENT / FLEXIBLE EXCHANGE RATES / FORECASTS / FOREIGN CURRENCY / FOREIGN CURRENCY DEBT / FOREIGN EXCHANGE / FOREIGN INVESTMENT / GDP / GDP DEFLATOR / GDP PER CAPITA / GENERAL EQUILIBRIUM / GENERAL EQUILIBRIUM MODELS / Global Financial Crisis, 2008-2009 / GOVERNMENT DEBT / GOVERNMENT EXPENDITURES / GROSS DOMESTIC PRODUCT / GROWTH POLICIES / GROWTH RATES / HEALTH CARE / HOUSEHOLD INCOME / HOUSEHOLD INCOMES / HOUSEHOLD SURVEY / HOUSEHOLD SURVEYS / HOUSEHOLD WELFARE / HUMAN DEVELOPMENT / INCOME DISTRIBUTION / INCOME GROUPS / INCOME INEQUALITY / INCOME SUPPORT PROGRAM / INCREASE POVERTY / INEQUALITY MEASURES / INFANT MORTALITY / INFORMAL SECTOR / INSURANCE / INTERNATIONAL BANK / INTERNATIONAL ECONOMICS / INTERNATIONAL FINANCE / INTERNATIONAL TRADE / INVESTMENT FUND / JOB DESTRUCTION / JOB LOSSES / JOBS / LABOR ADJUSTMENT / LABOR DEMAND / LABOR ECONOMICS / LABOR FORCE / LABOR MARKET / LABOR MARKET ADJUSTMENT / LABOR MARKET PERFORMANCE / LABOR MARKET POLICY / LABOR MARKET PROGRAMS / LABOR MARKET VARIABLES / LABOR MARKETS / LABOR PRODUCTIVITY / LABOR PROGRAM / LABOR SUPPLY / LABOR SURVEYS / LABOUR / Latin America / Latin America -- Economic conditions -- 21st century / LIQUIDITY / LIVING STANDARD / LOCAL CURRENCY / MACROECONOMIC POLICIES / MACROECONOMIC VARIABLES / MATHEMATICS / MEASURING POVERTY / MICRO MODEL / MICRODATA / MONETARY FUND / MONETARY POLICY / NATIONAL ACCOUNTS / NEGATIVE IMPACT / NET EXPORTS / OCCUPATION / OUTPUT PER CAPITA / PENSION / PENSIONS / PER CAPITA GROWTH / PER CAPITA INCOME / PERMANENT EMPLOYMENT / POLICY ANALYSIS / POLICY DEBATE / POLICY MESSAGES / POLICY OPTIONS / POLICY RESPONSE / POLICY RESPONSES / POPULATION GROUP / POPULOUS COUNTRIES / Poverty / Poverty -- Caribbean Area / Poverty -- Latin America / POVERTY CHANGES / POVERTY GAP / POVERTY IMPACT / POVERTY INCREASES / POVERTY LEVELS / POVERTY LINES / POVERTY RATE / POVERTY RATES / POVERTY REDUCTION / PREVIOUS ONES / PRIVATE TRANSFERS / PRODUCTIVITY / PUBLIC EMPLOYMENT / PUBLIC EMPLOYMENT SERVICES / PUBLIC SECTOR / PUBLIC SECTOR BORROWING / PURCHASING POWER / REAL GDP / REAL WAGES / RECESSION / REDUCED POVERTY / REGULATORY FRAMEWORKS / REMITTANCES / RENTS / RETURNS / RISING UNEMPLOYMENT / SAVINGS ACCOUNT / SIGNIFICANT IMPACT / SKILL TYPE / SOCIAL DEVELOPMENT / SOCIAL PROTECTION / SOCIAL SCIENCE / SOCIAL SECURITY / TEMPORARY EMPLOYMENT / TEMPORARY INCOME SUPPORT / TOTAL FACTOR PRODUCTIVITY / TRADE LIBERALIZATION / UNEMPLOYED / UNEMPLOYMENT / UNEMPLOYMENT BENEFITS / UNEMPLOYMENT COMPENSATION / UNEMPLOYMENT INSURANCE / UNEMPLOYMENT INSURANCE PROGRAMS / UNEMPLOYMENT RATE / UNEMPLOYMENT RATES / UNSKILLED WORKERS / VALUE ADDED / WAGE BILL / WAGES / WELFARE IMPACT / WORKER / WORKING HOURS / YOUTH UNEMPLOYMENT / YOUTH UNEMPLOYMENT RATE
• ISBN: 1464802416, 9781464802416, 9781464802430, 1464802432