The Composition of Growth Matters for Poverty Alleviation

This paper contributes to explain the cross-country heterogeneity of the poverty response to changes in economic growth. It does so by focusing on the structure of output growth itself. The paper presents a two-sector theoretical model that clarifies the mechanism through which the sectoral composit...

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Main Authors:	Loayza, Norman V., Raddatz, Claudio
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Measurement and Analysis of Poverty I320 Economic Development: Human Resources Human Development Income Distribution Migration O150
Online Access:	http://hdl.handle.net/10986/4720

id	okr-10986-4720
recordtype	oai_dc
spelling	okr-10986-47202021-04-23T14:02:19Z The Composition of Growth Matters for Poverty Alleviation Loayza, Norman V. Raddatz, Claudio Measurement and Analysis of Poverty I320 Economic Development: Human Resources Human Development Income Distribution Migration O150 This paper contributes to explain the cross-country heterogeneity of the poverty response to changes in economic growth. It does so by focusing on the structure of output growth itself. The paper presents a two-sector theoretical model that clarifies the mechanism through which the sectoral composition of growth and associated labor intensity can affect workers' wages and, thus, poverty alleviation. Then, it presents cross-country empirical evidence that analyzes, first, the differential poverty-reducing impact of sectoral growth at various levels of disaggregation, and, second, the role of unskilled labor intensity in such differential impact. The paper finds evidence that not only the size of economic growth but also its composition matters for poverty alleviation, with the largest contributions from unskilled labor-intensive sectors (agriculture, construction, and manufacturing). The results are robust to the influence of outliers, endogeneity concerns, alternative explanations, and various poverty measures. 2012-03-30T07:29:24Z 2012-03-30T07:29:24Z 2010 Journal Article Journal of Development Economics 03043878 http://hdl.handle.net/10986/4720 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Measurement and Analysis of Poverty I320 Economic Development: Human Resources Human Development Income Distribution Migration O150
spellingShingle	Measurement and Analysis of Poverty I320 Economic Development: Human Resources Human Development Income Distribution Migration O150 Loayza, Norman V. Raddatz, Claudio The Composition of Growth Matters for Poverty Alleviation
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This paper contributes to explain the cross-country heterogeneity of the poverty response to changes in economic growth. It does so by focusing on the structure of output growth itself. The paper presents a two-sector theoretical model that clarifies the mechanism through which the sectoral composition of growth and associated labor intensity can affect workers' wages and, thus, poverty alleviation. Then, it presents cross-country empirical evidence that analyzes, first, the differential poverty-reducing impact of sectoral growth at various levels of disaggregation, and, second, the role of unskilled labor intensity in such differential impact. The paper finds evidence that not only the size of economic growth but also its composition matters for poverty alleviation, with the largest contributions from unskilled labor-intensive sectors (agriculture, construction, and manufacturing). The results are robust to the influence of outliers, endogeneity concerns, alternative explanations, and various poverty measures.
format	Journal Article
author	Loayza, Norman V. Raddatz, Claudio
author_facet	Loayza, Norman V. Raddatz, Claudio
author_sort	Loayza, Norman V.
title	The Composition of Growth Matters for Poverty Alleviation
title_short	The Composition of Growth Matters for Poverty Alleviation
title_full	The Composition of Growth Matters for Poverty Alleviation
title_fullStr	The Composition of Growth Matters for Poverty Alleviation
title_full_unstemmed	The Composition of Growth Matters for Poverty Alleviation
title_sort	composition of growth matters for poverty alleviation
publishDate	2012
url	http://hdl.handle.net/10986/4720
_version_	1764392501227028480

The Composition of Growth Matters for Poverty Alleviation

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