Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/54010 
Year of Publication: 
2010
Series/Report no.: 
WIDER Working Paper No. 2010/77
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
Macroeconomic instability has been increasingly considered as a factor lowering average income growth and, in this way, is a factor slowing down poverty reduction. But it can also result in slower poverty reduction for a given average rate of growth, due to poverty traps, often examined at the microeconomic level. Testing a model of poverty change on a panel of data for more than 80 countries from 1981 to 2005, we find that income instability results in a lower poverty reduction for a given growth. It reflects a distributional effect not fully captured by a change in the Gini coefficient.
Subjects: 
income instability
poverty
inequality
economic growth
growth elasticity of poverty
poverty trap
JEL: 
E32
I30
I32
O15
D31
O40
ISBN: 
978-92-9230-315-0
Document Type: 
Working Paper

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