Why Don't We See Poverty Convergence?
- (pp. 504-23)
AbstractAverage living standards are converging among developing countries and faster growing economies see more progress against poverty. Yet we do not find poverty convergence; countries starting with higher poverty rates do not see higher proportionate rates of poverty reduction. The paper tries to explain why. Analysis of a new dataset suggests that, at given mean consumption, high initial poverty has an adverse effect on consumption growth and also makes growth less poverty-reducing. Thus, for many poor countries, the growth advantage of starting out with a low mean is lost due to a high incidence of poverty. (JEL D63, I31, I32, O15)
CitationRavallion, Martin. 2012. "Why Don't We See Poverty Convergence?" American Economic Review, 102 (1): 504-23. DOI: 10.1257/aer.102.1.504
- D63 Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- I31 General Welfare
- I32 Measurement and Analysis of Poverty
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration