Growth Still Is Good for the Poor

Average incomes in the poorest two quintiles on average increase at the same rate as overall average incomes. This is because, in a global data set spanning 121 countries over the past four decades, changes in the share of income of the poorest quintiles are uncorrelated with changes in average inco...

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Bibliographic Details
Main Authors:	Dollar, David, Kleineberg, Tatjana, Kraay, Aart
Format:	Journal Article
Language:	en_US
Published:	Elsevier 2015
Subjects:	growth inequality
Online Access:	http://hdl.handle.net/10986/22707

id	okr-10986-22707
recordtype	oai_dc
spelling	okr-10986-227072021-04-23T14:04:10Z Growth Still Is Good for the Poor Dollar, David Kleineberg, Tatjana Kraay, Aart growth inequality Average incomes in the poorest two quintiles on average increase at the same rate as overall average incomes. This is because, in a global data set spanning 121 countries over the past four decades, changes in the share of income of the poorest quintiles are uncorrelated with changes in average income. The variation in changes in quintile shares is also small relative to the variation in growth in average incomes, implying that the latter accounts for most of the variation in income growth in the poorest quintiles. In addition, we find little evidence that changes in the bottom quintile shares are correlated with country-level factors that are typically considered as important determinants for growth in average incomes or for changes in inequality. This evidence confirms the central importance of economic growth for improvements in living standards at the low end of the income distribution. It also illustrates the difficulty of identifying specific macroeconomic policies that are significantly associated with the growth rates of those in the poorest quintiles relative to everyone else. 2015-09-30T15:27:45Z 2015-09-30T15:27:45Z 2015-06-18 Journal Article European Economic Review 0014-2921 http://hdl.handle.net/10986/22707 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Elsevier Publications & Research Publications & Research :: Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	growth inequality
spellingShingle	growth inequality Dollar, David Kleineberg, Tatjana Kraay, Aart Growth Still Is Good for the Poor
description	Average incomes in the poorest two quintiles on average increase at the same rate as overall average incomes. This is because, in a global data set spanning 121 countries over the past four decades, changes in the share of income of the poorest quintiles are uncorrelated with changes in average income. The variation in changes in quintile shares is also small relative to the variation in growth in average incomes, implying that the latter accounts for most of the variation in income growth in the poorest quintiles. In addition, we find little evidence that changes in the bottom quintile shares are correlated with country-level factors that are typically considered as important determinants for growth in average incomes or for changes in inequality. This evidence confirms the central importance of economic growth for improvements in living standards at the low end of the income distribution. It also illustrates the difficulty of identifying specific macroeconomic policies that are significantly associated with the growth rates of those in the poorest quintiles relative to everyone else.
format	Journal Article
author	Dollar, David Kleineberg, Tatjana Kraay, Aart
author_facet	Dollar, David Kleineberg, Tatjana Kraay, Aart
author_sort	Dollar, David
title	Growth Still Is Good for the Poor
title_short	Growth Still Is Good for the Poor
title_full	Growth Still Is Good for the Poor
title_fullStr	Growth Still Is Good for the Poor
title_full_unstemmed	Growth Still Is Good for the Poor
title_sort	growth still is good for the poor
publisher	Elsevier
publishDate	2015
url	http://hdl.handle.net/10986/22707
_version_	1764451896319279104

Growth Still Is Good for the Poor

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