poverty and inequality pdf macroeconomic

Poverty And Inequality Pdf Macroeconomic

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This paper aims to explore the quality of economic growth in a sample of 50 emerging and transition economies ETEs , which are countries experiencing a process of fast growth and institutional change. Economic growth during — is regressed against poverty, inequality and human development variables using OLS cross-country regression models. The main findings are that growth did not reduce poverty and income inequality worsened too.

How is Economic Inequality Defined?

Equitable Growth supports research and policy analysis on how strong competition among U. Equitable Growth supports research and policy analysis on how unequal access to care, 21st century work-life policies, and education undermines stable, broad-based economic growth. Equitable Growth supports research and policy analysis on how trends in economic inequality and mobility and changes in the economy have affected the concentration of wealth, income, and earnings, and how these distributional shifts have affected the promise of economic security and opportunity. Equitable Growth supports research and policy analysis on how tax and macroeconomic policies can promote stable and broad-based economic growth. Bargaining Power. Economic Inequality. Economic Mobility.

This article explores the interrelationships among poverty, economic performance, and inequality in rich countries. It argues that poverty rises and falls with the business cycle and economic performance. Business cycle refers to macroeconomic fluctuations in economic growth, unemployment, and employment. Higher economic growth and lower unemployment rates mean more individuals employed. Because a job is one of the most effective ways to remove a household from poverty, macroeconomic performance should directly influence individual poverty.

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Metrics details. Financial inclusion is a key element of social inclusion, particularly useful in combating poverty and income inequality by opening blocked advancement opportunities for disadvantaged segments of the population. This study intends to investigate the impact of financial inclusion on reducing poverty and income inequality, and the determinants and conditional effects thereof in developing countries. The analysis is carried out using an unbalanced annual panel data for the period of — For this purpose, we construct a novel index of financial inclusion using a broad set of financial sector outreach indicators, finding that per capita income, ratio of internet users, age dependency ratio, inflation, and income inequality significantly influence the level of financial inclusion in developing countries. Furthermore, the results provide robust evidence that financial inclusion significantly reduces poverty rates and income inequality in developing countries. Financial inclusion connotes all initiatives that make formal financial services accessible and affordable, primarily to low-income people.


The second chapter deals with the impact poverty has on economic growth while the third and fourth investigate how inequality influences aggregate outcomes.


Economic inequality

There are wide varieties of economic inequality , most notably measured using the distribution of income the amount of money people are paid and the distribution of wealth the amount of wealth people own. Besides economic inequality between countries or states, there are important types of economic inequality between different groups of people. Important types of economic measurements focus on wealth , income , and consumption. There are many methods for measuring economic inequality, [3] with the Gini coefficient being a widely used one. Another type of measure is the Inequality-adjusted Human Development Index , which is a statistic composite index that takes inequality into account.

This paper analyzes the relationship between macroeconomic factors and the income distribution using data on equivalized disposable household income from the United Kingdom for — We argue in favour of fitting a parametric functional form to the income distribution for each year, and then modeling the time series of model parameters in terms of the macroeconomic factors, as this better allows us to take into account non-stationarity in the time series. Estimates from models that relate income distribution parameters to cyclical variables in first differences to account for non-stationarity suggest that neither inflation nor unemployment have significant effects on income inequality. Compared to the commonly-used method of modelling the income shares directly, our approach indicates that there was no clear cut relationship between macroeconomic factors and the UK income distribution during the last third of the twentieth century.

Not a MyNAP member yet? Register for a free account to start saving and receiving special member only perks. W e live in an unequal world in which descriptors of global inequality—especially inequalities in income—abound.

The last two decades has witnessed an increase in globalizing influences affecting most countries, Africa included.

Growth, Inequality and Poverty in Emerging and Transition Economies

Pro-Poor Macroeconomics pp Cite as. The success is defined by the high and sustained rates of growth of aggregate and per capita national income; the absence of major financial crises that have characterized a number of other emerging markets; and substantial reductions in income poverty. The importance of these two countries also spills over into discussions of international inequality. In this chapter, we attempt such an examination, assessing growth performance and its impact on poverty and inequality, and also specifically addressing the question of how the macro policies have contributed to observed outcomes. Unable to display preview. Download preview PDF.

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The impact of macroeconomic conditions on income inequality

4 comments

Isidora P.

PDF | The purpose of this study is to review a major section of the literature on macroeconomics and poverty to achieve better perspectives on emerging | Find​.

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JazmГ­n Q.

While The Equality Trust recognises the importance of these measures, the focus of our work is specifically the gap between the well-off and the less well-off in the overall economic distribution.

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Jennifer P.

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