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A poverty-inequality trade off?

A poverty-inequality trade off? 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 1990s 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Journal of Economic Inequality Springer Journals

A poverty-inequality trade off?

Ravallion, Martin
The Journal of Economic Inequality , Volume 3 (2) – Jun 22, 2005
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References (33)

Publisher
Springer Journals
Copyright
Copyright © 2005 by Springer
Subject
Economics; Economic Growth; Development Economics; International Economics; Political Science; Public Finance
ISSN
1569-1721
eISSN
1573-8701
DOI
10.1007/s10888-005-0091-1
Publisher site
See Article on Publisher Site

Abstract

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 1990s 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.

Journal

The Journal of Economic Inequality – Springer Journals

Published: Jun 22, 2005

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