A New Poverty Decomposition

This note proposes a new poverty decomposition that can be used to explain changes in poverty over time. The change in poverty is derived as the exact sum of four elements: (i) the overall growth effect, assuming inequality in the distribution does not change; (ii) the impact of differences in growth rates between the groups; (iii) the effect of the change in inequality within the different groups; (iv) the impact of changes in the population shares of the various groups.     

Population Redistribution Trends in Nonmetropolitan America, 2010 to 2021☆

Given the turbulent conditions of the early 21st century and the release of data from the 2020 Census, it is an appropriate time to examine contemporary population redistribution trends in nonmetropolitan America. Analysis centers on the major demographic components of population change: migration; and natural increase. The analysis demonstrates that the turbulent economic, social, and now epidemiological conditions of recent years altered traditional demographic trends in nonmetropolitan America. For the first time in history, nonmetropolitan America lost population between 2010 and 2020 because of shifts in migration trends and diminishing natural increase. In contrast, post-censal population estimates suggest that nonmetropolitan population gains exceeded those in metropolitan areas for the first time in 50 years between 2020 and 2021. The recent widespread nonmetropolitan population increases are the result of substantial net migration gains that offset the growing natural decrease fostered by COVID-19. Sustained net migration gains in nonmetro areas provides a demographic lifeline to many counties that would otherwise face depopulation because of accelerating natural decrease. Whether these migration patterns can be sustained remains to be seen.     

Multidimensional poverty in Latin America and the Caribbean: new evidence from the Gallup World Poll

This paper studies poverty in Latin America and the Caribbean from a multidimensional perspective, exploiting the Gallup World Poll, a survey that provides a unique opportunity to perform intercountry comparisons. By applying factor analysis we find that welfare can be appropriately summarized by three dimensions: income, subjective welfare and “basic needs”. Another finding is that the US$ 1 line appears to be a reasonable cut-off value to measure food deprivation.     

Class and comparison: subjective social location and lay experiences of constraint and mobility

Lay perceptions and experiences of social location have been commonly framed with reference to social class. However, complex responses to, and ambivalence over, class categories have raised interesting analytic questions relating to how sociological concepts are operationalized in empirical research. For example, prior researchers have argued that processes of class dis‐identification signify moral unease with the nature of classed inequalities, yet dis‐identification may also in part reflect a poor fit between ‘social class’ as a category and the ways in which people accord meaning to, and evaluate, their related experiences of socio‐economic inequality. Differently framed questions about social comparison, aligned more closely with people's own terms of reference, offer an interesting alternative avenue for exploring subjective experiences of inequality. This paper explores some of these questions through an analysis of new empirical data, generated in the context of recession. In the analysis reported here, class identification was common. Nevertheless, whether or not people self identified in class terms, class relevant issues were perceived and described in highly diverse ways, and lay views on class revealed it to be a very aggregated as well as multifaceted construct. It is argued that it enables a particular, not general, perspective on social comparison. The paper therefore goes on to examine how study participants compared themselves with familiar others, identified by themselves. The evidence illuminates social positioning in terms of constraint, agency and (for some) movement, and offers insight into very diverse experiences of inequality, through the comparisons that people made. Their comparisons are situated, and pragmatic, accounts of the material contexts in which people live their lives. Linked evaluations are circumscribed and strongly tied to these proximate material contexts.The paper draws out implications for theorizing lay perspectives on class, and subjective experiences of inequality.     

Who do you think they were? How family historians make sense of social position and inequality in the past

How do social comparisons over time shape perceptions of inequality? In thinking about subjective inequality, it is important to ask which social comparisons matter in establishing people's sense of relative social position and wider inequalities. These issues are discussed by drawing on a qualitative study of popular genealogy, which examines how people make sense of social position in the past, and explores how social change affects people's sense of social hierarchies. The gaze of family history promotes certain sorts of social comparisons, between ‘then and now’, and between immediate kin, which can flatten the sense of social hierarchies. However, the ability to determine social position also depends on the quality of information available, and how different practical engagements facilitate ‘sideways’ comparisons between contemporaries, affording different fields of vision on relative inequalities. On this evidence, when exploring subjective inequality it is necessary to examine when and how people engage in social comparison as part of everyday practical activities.     

Poverty in the news media: Continuities,ruptures, and change in the reporting socioeconomic inequality

This work attempts to offer a reflexive account of the key ideas and scholarly contributions developed over the years that provide elements for a theoretical explanatory framework regarding news media and poverty. In so doing, the article presents a general assessment of some of the key works in this area, while assessing the main notions, concepts, and contributions in this regard. The author points out at the fact that there is broad agreement among most scholars in relation to these issues while suggesting, nevertheless, that there are still some important pieces of the puzzle missing in our understanding about how the media engages with poverty and inequality.     

International income poverty measurement: which way now?

We critically review conceptual and empirical issues surrounding the derivation of the international poverty line, expressed in PPP-adjusted dollars and linked to various rounds of the International Comparison Program (ICP). We find that there are some limitations in the current estimation of these lines, but show that statistically superior methods lead to lines that are relatively robust and confirm the $1.25 using 2005 PPPs and suggest $1.67–1.71 using 2011 PPPs (or close to the $1.90 proposed by the World Bank if we follow the World Bank’s approach of adjusting inflation rates in some countries); they also roughly confirm the current shape of the proposed ‘weakly relative’ poverty line. Using the new absolute line based on 2011 PPPs would lead to substantially lower poverty in our estimation. The extent of the decline depends on whether and how one treats China, India, and Indonesia differently from other countries in the 2005 and 2011 PPPs. More seriously, we note that the dependence on successive ICP rounds creates conceptual and empirical problems that have become worse over time so that we suggest that it would be best to consider alternatives to the current reliance on ICP rounds and the resulting PPPs. As a short-term solution we propose to fix the international poverty line in national currencies using either the 2005 or 2011 level; in the medium term, we argue for global poverty measurement based on internationally coordinated national poverty measurement.     

Axiomatic measurement of multidimensional well-being inequality: Some distributional questions

This paper focuses on two main issues which are crucial for improving on the analysis of multidimensional inequality: the effect of both the dispersion of well-being attributes across individuals and the interaction among attributes on the measurement of multidimensional well-being. To approach these distributional questions we rely on the Atkinson, Kolm, Sen (hereafter AKS) methodology, which defines a multidimensional inequality index consistent with the Pigou–Dalton principle. This index can be decomposed into univariate indexes belonging to the class of AKS indexes, and a residual term accounting for the interaction across dimensions. The empirical application investigates the evolution of inequality in well-being across some EU countries between 1994 and 2001.Since the multidimensional index depends on the values assigned to the parameters, we test the sensitivity of the trend in well-being to the degree of inequality aversion on each dimension. Our empirical results summarize the evolution of inequality for the indicators of well-being considered both separately and jointly, over time and across countries.     

Armut und Klassenstruktur

The article tries to combine dynamic and multidimensional poverty-research with class analysis, using data from the German Socio-Economical Panel. A multidimensional indicator for measuring poverty both long-term and cross-sectional is developed, based on theoretical assumptions concerning the relations between poverty, time and social inequality. The empirical results of this approach give no evidence neither of temporalization of poverty nor of a new social cleavage between exclusion and inclusion. Instead they depict almost time-stable stratas or zones of high poverty, precarity and wealth, which are closely related to social class. Estimating binary logistic regressions, the effect of social class on poverty-risks remains highly significant controlling for several socio-demographic variables and even labour-market issues such as unemployment. In the core of new poverty, it is pointed out, we can still find working class families.     

Poverty and economic development: not as direct as it may seem

The relationships among various subsets of economic development, poverty, crime, and/or income inequality have been separately investigated in several theoretical and empirical studies. However, there has been very little empirical analysis on the interdependence among all these variables in one framework. This paper examines the causality between economic development and poverty while incorporating crime and inequality. It employs a co-integration test, a 4-variable vector autoregressive (VAR) model, and a Granger test in the US over the period 1959–2001. Findings reveal a feedback loop mechanism between economic development, poverty, and crime. Interestingly, income inequality as measured by the Gini coefficient has no important impact on any of the variables.     

The relationship between inequality and labor market performance: Evidence from U.S. states

A central issue facing society is the equity/growth trade-off. Conventional economic theory suggests enhanced incentives associated with income inequality should increase growth, but at the expense of “fairness.” Recent theories challenge this notion by contending that inequality reduces human-capital investment and increases instability. Nevertheless, empirical evidence from U.S. states and across countries suggests an ambiguous relationship between inequality and income growth. Yet, at the state level, because inequality is related to many disamenities including crime, it can lead to lower utility and out-migration. The disamenities may produce compensating differentials that increase income. Given the inconsistencies regarding income, this study extends the literature by instead examining employment growth. Namely, long-run job growth is closely associated with net migration and any utility gains from migration. Thus, examining relative employment growth indicates whether inequality is associated with netutility gains from a vibrant economy or net-losses from disamenities. The results suggest that state-level inequality is associated with greater long-run job growth, or enhanced incentives appear to be the dominant factor.     

Second‐Generation Poverty Reduction Strategies: New Opportunities and Emerging Issues

The poverty reduction strategy paper (PRSP) approach has taken centre stage in development asssistance over the past five years. International endorsement of the approach has led to important gains in government focus on poverty reduction, civil society participation and donor behaviour. Yet PRSPs also potentially offer a much greater contribution to aid effectiveness, good governance and poverty reduction in developing countries. With a second generation of PRSPs now set to appear, this article examines the technical and political challenges that need addressing to realise their potential over time. Emerging issues include how to respond to political transitions, alternative design approaches, how to assess financing needs, and ways of enhancing the predictability of aid.     

Measuring poverty and inequality in northern Canada

We provide the first direct comparisons of poverty and inequality in the North (i.e. Yukon, Northwest Territories, Nunavut) with elsewhere in Canada. We do so by first constructing a northern equivalence scale. Based on an Engel methodology, we estimate the extra income needed by families in the North to devote the same share to necessities as those in southern Canada. Using econometric techniques and public use microdata from the Survey of Household Spending, we find that cost of living is 1.46 times higher in the North. We use this scale to adjust the incomes of northern residents so that purchasing power is, for the purposes of our model, equal to that in the South. We subsequently measure poverty and inequality in northern versus southern Canada over the period 1997–2009. Our findings indicate that incidence of poverty is much higher in the North. For example, 31.1% of northern families with children are poor, compared with 9.9% in the South. Moreover, while approximately 10% of the southern population is represented in each income decile, 31.1% of northern families with children are in the bottom 10%. Only 3% have incomes that would place them among the richest 10% of Canadians.     

Statistical inference for vector measures of inequality and poverty

In this paper, we consider methods of inference for vector measures of inequality and poverty. These vector measures may consist of several different scalar measures of inequality or poverty in a single dimension, several scalar measures of poverty which use different poverty lines, or several scalar measures of inequality or poverty in different dimensions. Our proposed methods are illustrated with a Monte Carlo simulation and two empirical examples utilizing Canadian household data.     

The possibilities for global inequality and poverty reduction using revenues from global carbon pricing

Global carbon pricing can yield revenues which are large enough to create significant global pro-poor redistributive opportunities. We analyze alternative multidecade growth trajectories from 2015 to 2105 for major global economies with carbon tax rates designed to stabilize emissions in the presence of both continued country growth and autonomous energy use efficiency improvement. In our central case analysis, revenues from globally internalizing carbon pricing rise to 8 % and then fall to 6 % of gross world product. High growth in India and China reduces global inequality and poverty strongly over time, but important incremental redistributive effects can be achieved using global carbon pricing revenues. Taking into account both between-country effects and previous literature estimates of within-country effects, a global carbon tax alone tends to be regressive in its global incidence. However, if its revenues are redistributed globally via equal per capita transfers, in our central case the Gini coefficient for world income falls by about 3 % and the share of the bottom decile rises by 81 % on average from 2015 to 2105. The population living in poverty falls by 16 % in 2015. Going further, global poverty could be eliminated entirely by 2015 according to our calculations if one third of global carbon tax revenues were redistributed directly to the poorest individuals.     

Can Africa Reduce Poverty by Half by 2015?

This article uses simulations to explore the possibility of halving the number of people in Africa living in extreme poverty by 2015. It shows that initial levels of inequality and per capita consumption determine the cumulative growth and reductions in inequality required to achieve this target, and finds that on average Africa needs only a relatively modest annual rate of growth in per capita household consumption, if inequality remains unchanged. The trade‐off between the two varies greatly among countries, and their policy choices are thus quite different: in some cases small changes in income distribution can have a large effect on poverty, while in others a strong focus on growth is the only viable option.     

Tracing out the effects of demographic changes on the income distribution

During the 1980s and 1990s fertility decisions varied significantly and not uniformly along the income distribution in Argentina. In this paper we study the effects of these demographic changes on income poverty and inequality by applying microeconometric decomposition techniques. In particular, we simulate the equivalized household income distribution that would emerge if individuals observed in a given base year had taken fertility decisions as they did in another different year. The results suggest that these demographic factors have contributed considerably to the changes in poverty and inequality experienced by Argentina since the 1980s.     

Growth,Inequality and Poverty in Emerging and Transition Economies

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 1995–2006 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. On the one hand, economic growth occurred despite the worsening of income inequality. However, this result does not identify a “U-shaped” Kuznets curve because even after a consistent period of growth, inequality did not decrease and it remained at higher levels. Only countries with higher education levels and public expenditure in strategic dimensions seem to escape from this trap. On the other hand, growth occurred at the expense of an important human development variable i.e., life expectancy, and of an important indicator of democracy, i.e., voice and accountability.     

Distributive effects of benefits and taxes

In light of the growing federal deficit, pressure is mounting to cut federal spending. If the budget for social security programs is cut, who will suffer? This article presents the results of a study that investigated the degree to which taxes and public income transfers change the level of income, the degree of inequality in income distribution, and the poverty rates of various demographic groups. Major findings are that public income transfers are more powerful than taxes in equalizing the income distribution and that poverty reduction through non-means-tested transfer programs is more effective among elderly people, white people, and people in married-couple families, whereas poverty reduction through means-tested transfer programs is more effective among nonelderly people, black people, and people in female-headed families. Implications for social work practice are discussed.     

Understanding Persistent Poverty: Social Class Context in Rural Communities1

Abstract Urban and rural poverty researchers have been paying increased attention to the social context in which the poor are embedded. This paper argues that the scale, familiarity among social actors, and relatively bounded nature of poor rural communities offer unique advantages for understanding why poverty persists across generations in the same places. Rural sociologists can observe the social interaction associated with particular class and race relations, track the evolution of these patterns over time, and uncover the process through which the social class context perpetuates poverty and underdevelopment. Studies of poverty in rural Texas, rural Mississippi, and Appalachia are reviewed to illustrate how political economies that rely on low wages and extreme control over labor generate rigid stratification. This structure of inequality determines social interaction and the allocation of opportunities in rural communities, blocking upward mobility, and undermines investment and trust in social institutions, blocking development.