nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2007‒10‒27
one paper chosen by
Maximo Rossi
University of the Republic

  1. Poverty and Inequality Components: a Micro Framework By Abdelkrim Araar; Jean-Yves Duclos

  1. By: Abdelkrim Araar; Jean-Yves Duclos
    Abstract: This paper explores the link between poverty and inequality through an analysis of the poverty impact of changes in income-component inequality and in between -an within- group inequality. This can help shed light on the theoretical and empirical linkages between poverty, growth and inequality. It might also help design policies to improve both equity and welfare. The tools are illustrated using the recent 2004 Nigerian national household survey. The analytical derived linkages are supported by the empirical illustration, and interesting insights also emerge from the empirical analysis. One such insight is that both the sign and the size of the elasticities can be quite sensitive to the choice of measurement assumptions (such as the choice of inequality and poverty aversion parameters, and that of the poverty line). The elasticities are also very much distributive-sensitive and dependent on the type of inequality-changing processes taking place. This also suggests that the response of poverty to growth can also be expected to be significantly context specific.
    Keywords: Poverty, inequality, poverty elasticities, redistribution
    JEL: D63 I32 O12
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:lvl:lacicr:0735&r=ltv

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