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Decomposition of Poverty Change: a Case Study

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  • Biscione Antonella
  • de Felice Annunziata
  • Martucci Isabella

Abstract

This paper investigates the impact of change in total population in decomposition of poverty change in Albania, providing empirical illustrations with data from a country still in economic and social transition, even if in recent years has registered a high growth of GDP rate. To quantify the impact of change in total population, we use the methodology developed by Mishra (2015). In previous literature decomposing poverty change into growth and inequality effects, the impact of change in total population concealed by the hypothesis that the growth effect can be quantified by observing at the growth rate of mean income. The Mishra’s method considers the population growth as an independent within-group effect that results different respect to the inequality and growth effect respectively. Furthermore, this method integrates that to Son (2003) so that variation in population shares across groups represents the between-group effect. Thus, we will have three effects: growth on account of total income, inequality, and change in total population. These effects can be calculated in multiple possibilities depending on the sequence that each is computed and the base year. JEL classification numbers: I30; I32;Keywords: Poverty, Population, Schwarz's inequality, Triangle inequality

Suggested Citation

  • Biscione Antonella & de Felice Annunziata & Martucci Isabella, 2018. "Decomposition of Poverty Change: a Case Study," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 8(3), pages 1-4.
    • Handle: RePEc:spt:admaec:v:8:y:2018:i:3:f:8_3_4
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    References listed on IDEAS

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    1. Camilla Mastromarco & Vito Peragine & Felice Russo & Laura Serlenga, 2014. "Poverty, inequality and growth in Albania," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(4), pages 635-682, October.
    2. Todaro, Michael P, 1969. "A Model for Labor Migration and Urban Unemployment in Less Developed Countries," American Economic Review, American Economic Association, vol. 59(1), pages 138-148, March.
    3. Srijit Mishra, 2015. "Decomposing Poverty Change: Deciphering Change in Total Population and Beyond," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(4), pages 799-811, December.
    4. Sami Bibi & Jean‐Yves Duclos, 2010. "A Comparison Of The Poverty Impact Of Transfers, Taxes And Market Income Across Five Oecd Countries," Bulletin of Economic Research, Wiley Blackwell, vol. 62(4), pages 387-406, October.
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    8. Michal Brzezinski, 2011. "Accounting for recent trends in absolute poverty in Poland: a decomposition analysis," Post-Communist Economies, Taylor & Francis Journals, vol. 24(4), pages 465-475, December.
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    Cited by:

    1. Kezhong Jiang & Qian Zhou & Jin Yao, 2023. "Research on the Pro-Poorness of Economic Growth in Rural China," Sustainability, MDPI, vol. 15(7), pages 1-18, April.
    2. Antonella Biscione & Dorothée Boccanfuso & Raul Caruso, 2020. "A Hypothesis on Poverty Change in Albania (2007-2016)," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 128(3), pages 301-320.

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    More about this item

    Keywords

    poverty; population; schwarz's inequality; triangle inequality;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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