| 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 |