handbook on poverty and inequality world bank pdf

Handbook On Poverty And Inequality World Bank Pdf

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This entry presents the empirical evidence of how inequality between incomes has changed over time, and how the level of inequality varies between different countries. We also present some of the research on the factors driving the inequality of incomes.

Majumder, Rajarshi : Removing poverty and inequality in India: the role of infrastructure.

Poverty is defined by the World Bank Haughton and Khandker, , p. It can be defined narrowly or more broadly, depending on how well-being is understood. Narrow definitions of well-being are typically linked to commodities, i.

Removing poverty and inequality in India: the role of infrastructure

Poverty is defined by the World Bank Haughton and Khandker, , p. It can be defined narrowly or more broadly, depending on how well-being is understood. Narrow definitions of well-being are typically linked to commodities, i.

Income and consumption are generally defined at household level and do not take account of intra-household variations which obscures individual poverty, see Sen in Chant, ; Coudouel-et-al Poverty is often defined this way in developing countries, as it focuses attention on vital human needs, and helps with measurement and cross country comparisons Hulme, The most commonly used global comparative poverty lines were USD 1.

Relative poverty is defined in relation to other people in that society at the same time Hulme, Poverty is often defined this way in high-income countries to acknowledge that people are part of a society and to take into account broader quality of life issues Hulme, Well-being can also be linked to the lack of a specific type of consumption good.

Viewed in this way, poverty is a multidimensional phenomenon and less amenable to simple solutions. For instance, while higher average incomes will certainly help reduce poverty, these may need to be accompanied by measures to empower the poor, or insure them against risks, or to address specific weaknesses such as inadequate availability of schools or a corrupt health service.

There is increasing understanding that poverty is multidimensional, although there is a tendency to focus on human development outcomes such as health, education, and nutrition when looking beyond income measures Poverty Analysis Discussion Group, This may underplay the significance of socio-cultural difference and more qualitative elements powerlessness, stigma, discrimination and isolation, for example Poverty Analysis Discussion Group, Some people are chronically poor poor for years at a time or even their whole lives , while others can be transiently poor move in and out of poverty Coudouel et al.

Poverty can be seasonal or nonseasonal. For example, people can fall into poverty if the end of the dry season exhausts food stocks and then recover later Coudouel et al. Poverty dynamics help explain why people move into and out of poverty and why some people are trapped in it Shepherd, Child poverty refers to the deprivation of the material, spiritual and emotional resources children need to survive, develop and thrive, and to enjoy their rights and achieve their full potential.

Inequality is concerned with the full distribution of wellbeing; poverty is focused on the lower end of the distribution only — those who fall below a poverty line McKay, Inequality can be viewed as inequality of what, inequality of whom and inequality over what time horizon McKay, Inequality can exist in a variety of different spheres such as income, wealth, education, health and nutrition.

Vertical inequalities are a measure of inequality among individuals and households, often focused on income or consumption; and horizontal inequalities occur among groups who share a common identity, and often have economic, social, political and cultural status dimensions Stewart, , p. Economic inequality is often found in conjunction with other social inequalities faced by people marginalised because of identities such as gender, disability, race, ethnicity, caste, religion or language — resulting in intersecting — and mutually reinforcing — inequalities Kabeer, ; World Bank, These socially excluded groups often suffer from spatial inequalities as they tend to be concentrated in disadvantaged locations.

The social, economic and spatial inequalities also contribute to political inequalities UNDP, There are two prominent perspectives on inequality de Barros et al. For those born into relatively disadvantaged households, increasingly unequal outcomes mean fewer opportunities to live a fulfilling life UNDP, Inequality can be understood at different levels Milanovic, It occurs within countries, and between different countries, either taking into account population weighting or not Milanovic, Global inequality, on the other hand, looks at the differences in income between all individuals in the world rather than between countries, recognising the different levels on inequality within countries.

Each different understanding of inequality has different consequences for establishing changes in inequality levels Milanovic, Poverty and well-being Poverty is a pronounced deprivation in well-being. Income or consumption poverty refers to lack of monetary resources to meet needs.

Absolute poverty is poverty below a set line of what is required to access minimum needs for survival. Relative poverty is set in relation to others. Shelter poverty, food poverty, asset poverty, time-poverty or health poverty refer to lack of that specific good. Multidimensional poverty recognises the many different ways in which people can be deprived.

The transiently poor move in and out of poverty. The chronically poor are poor for years at a time or even their whole lives. Vulnerability to poverty is the probability or risk of being in poverty or falling into poverty in the future. Inequality refers to disparities and discrepancies in areas such as income, wealth, education, health, nutrition, space, politics and social identity.

Intersecting inequalities occur when people face inequality in multiple aspects of their lives. Vertical inequalities occur between individuals. Horizontal inequalities occur between groups. Inequality of outcomes refers to differences in what people achieve in life e. Global inequality refers to difference in income between all individuals in the world rather than inequalities between countries.

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Income Inequality

Martin Ravallion born 19 March , [1] is an Australian economist. As of [update] he was the inaugural Edmond D. Villani Professor of Economics at Georgetown University , [2] and previously had been director of the research department at the World Bank. Ravallion has researched extensively on poverty in developing countries and on policies for fighting poverty. Based on publications and citations, Ravallion is regularly ranked in the top 10 development economists in the world, [8] and in the top economists in all fields.

You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbpubs See general information about how to correct material in RePEc. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thomas Breineder The email address of this maintainer does not seem to be valid anymore. Please ask Thomas Breineder to update the entry or send us the correct email address. If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item.

The idea that developing countries face a trade off between poverty and inequality has had considerable influence on thinking about development policy. The experience of developing countries in the s does not, however, reveal any sign of a systematic trade off between measures of absolute poverty and relative inequality. Indeed, falling inequality tends to come with falling poverty incidence. And rising inequality appears more likely to be putting a brake on poverty reduction than to be facilitating it. However, there is evidence of a trade off for absolute inequality, suggesting that those who want a lower absolute gap between the rich and the poor must in general be willing to see lower absolute levels of living for poor people.


and offices in over locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty​.


Martin Ravallion

The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries.

Handbook on Poverty and Inequality

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