Toward a New Definition of Shared Prosperity : A Dynamic Perspective from Three Countries

This paper proposes a new measure of growth in shared prosperity, based on shifts in population shares of different income groups over time. This measure complements the definition of shared prosperity recently proposed by the World Bank in which i...

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Bibliographic Details
Main Authors:	Dang, Hai-Anh H., Lanjouw, Peter F.
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	LIVING STANDARDS PER CAPITA CONSUMPTION POVERTY THRESHOLD GROWTH RATES POVERTY LINE ECONOMIC GROWTH PRO- POOR DISPOSABLE INCOME INCOME POVERTY RATES ANNUAL GROWTH RATE ECONOMIC REVIEW DEVELOPING COUNTRIES HOUSING AVERAGE INCOMES REDUCED POVERTY NATIONAL POVERTY POLICY DISCUSSIONS ESTIMATION RESULTS DISTRIBUTIONAL EFFECTS POORER GROUPS POORER HOUSEHOLDS ANNUAL GROWTH NATIONAL POVERTY RATE GLOBAL POVERTY MEASURES POVERTY MEASURES NATIONAL POVERTY LINES DEVELOPING COUNTRY REGION POVERTY REDUCTION PRO-POOR MEASURING POVERTY DEVELOPMENT ECONOMICS NEGATIVE GROWTH NEGATIVE IMPACT INCOME GROWTH VULNERABLE HOUSEHOLDS AVERAGE INCOME SOCIAL PROGRESS HOUSEHOLD INCOME PER CAPITA GROWTH HOUSEHOLD SURVEYS INCOME LEVELS SOCIAL PROTECTION ECONOMIC REFORMS POOR GROWTH PRODUCT POWER PARITY INCOME DATA EMPIRICAL APPLICATION DEVELOPMENT RESEARCH POVERTY LINES CONSUMPTION REDUCING POVERTY COUNTRY LEVEL POPULATION SHARE CROSS-SECTIONAL DATA POLICY MAKERS POORER POPULATION MEAN INCOME SUSTAINABLE GROWTH INCOME DISTRIBUTION ABSOLUTE POVERTY INCOMES PRO- POOR GROWTH MIDDLE CLASS MEAN CONSUMPTION TRANSFER PROGRAMS PER CAPITA GROWTH RATE RELATIVE POVERTY ECONOMICS ECONOMIC INEQUALITY ECONOMIC DEVELOPMENT INCOME DYNAMICS WELFARE MEASURES GROWTH RATE EXTREME POVERTY POVERTY ABSOLUTE TERMS HOUSEHOLD CONSUMPTION PRO-POOR GROWTH POVERTY DYNAMICS POSITIVE GROWTH POLICY RESEARCH POVERTY RATE POOR CONSUMPTION PER CAPITA EXCHANGE RATE COUNTRY SPECIFIC DEVELOPMENT INDICATORS POLITICAL INSTABILITY GROWTH PROCESS DECREASING FUNCTION POVERTY ANALYSIS INEQUALITY INCOME GROUPS DEVELOPMENT POLICY GROWTH POOR HOUSEHOLDS
Online Access:	http://documents.worldbank.org/curated/en/2015/06/24596134/toward-new-definition-shared-prosperity-dynamic-perspective-three-countries http://hdl.handle.net/10986/22165

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Summary:	This paper proposes a new measure of growth in shared prosperity, based on shifts in population shares of different income groups over time. This measure complements the definition of shared prosperity recently proposed by the World Bank in which income growth of the bottom 40 percent is examined. The new measure’s strengths arise from its close ties to countries’ national poverty lines and poverty measures, its focus on inclusion of the vulnerable population, and its identification of a population segment that is neither poor nor at significant risk of falling into poverty. The paper also offers a typology of scenarios for tracking shared prosperity under this measure. It provides illustrative examples using survey data from India, the United States, and Vietnam for the mid-to-late 2000s. Estimation results comparing the two approaches with measuring the evolution of shared prosperity are qualitatively consistent, and suggest that during this period, Vietnam enjoyed the greatest expansion in shared prosperity, followed by India and then the United States.

Toward a New Definition of Shared Prosperity : A Dynamic Perspective from Three Countries

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