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Growth, Inequality, And Poverty: A Cautionary Note

Author

Listed:
  • Eugene Smolensky
  • Robert Plotnick
  • Eirik Evenhouse
  • Siobhan Reilly

Abstract

Economic growth had less impact on poverty rates in the 1980s than in the 1960s. Could this be explained by Locke Anderson's observation that the higher median income, the greater the amount of growth needed to achieve a percentage point fall in the poverty rate? No, higher poverty rates are due instead to the rise in income inequality. With higher inequality, however, trickle down could be as effective in the 1990s as it was in the late 1960s. More generally, assessments of anti‐poverty policy must recognize that inequality is as vital to changes in the poverty rate as growth in mean income.

Suggested Citation

  • Eugene Smolensky & Robert Plotnick & Eirik Evenhouse & Siobhan Reilly, 1994. "Growth, Inequality, And Poverty: A Cautionary Note," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(2), pages 217-222, June.
    • Handle: RePEc:bla:revinw:v:40:y:1994:i:2:p:217-222
    DOI: 10.1111/j.1475-4991.1994.tb00060.x
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    Citations

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    Cited by:

    1. Rana Hasan & M.G. Quibria & Yangseon Kim, 2003. "Poverty and Economic Freedom: Evidence from Cross-Country Data," Economics Study Area Working Papers 60, East-West Center, Economics Study Area.
    2. James E. Foster & Miguel Székely, 2008. "Is Economic Growth Good For The Poor? Tracking Low Incomes Using General Means," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1143-1172, November.
    3. Zyblock, Miles & Lin, Zhengxi & Zhengxi, Lin, 1997. "Trickling Down or Fizzling Out? Economic Performance, Transfers, Inequality and Low Income," Analytical Studies Branch Research Paper Series 1997110e, Statistics Canada, Analytical Studies Branch.
    4. James E. Foster & Miguel Székely, 2001. "¿Es el crecimiento económico bueno para los pobres? Seguimiento del ingreso bajo con medias generales," Research Department Publications 4270, Inter-American Development Bank, Research Department.
    5. Ke-Mei Chen & Te-Mu Wang, 2015. "Determinants of Poverty Status in Taiwan: A Multilevel Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 123(2), pages 371-389, September.
    6. Salem , Ali Asghar & Bayat , Neda, 2018. "Factors Influencing Poverty in Iran Using a Multilevel Approach," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 13(1), pages 81-106, January.

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