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Is there poverty convergence?

Author

Listed:
  • Jesús Crespo Cuaresma
  • Stephan Klasen
  • Konstantin M. Wacker

Abstract

Martin Ravallion ("Why Don't We See Poverty Convergence?" American Economic Review, 102(1): 504-23; 2012) presents evidence against the existence of proportionate convergence in global poverty rates despite convergence in household mean income levels and the link between income growth and poverty reduction. We show that heterogeneity in this link affects the evidence of poverty convergence and that this result depends on the sample selected, especially on the inclusion of transition economies with poorly measured low poverty incidences. Motivating the poverty convergence equation with an arguably superior semi-elasticity specification, we find robust evidence of convergence in absolute poverty rates.

Suggested Citation

  • Jesús Crespo Cuaresma & Stephan Klasen & Konstantin M. Wacker, 2017. "Is there poverty convergence?," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 230, Courant Research Centre PEG.
    • Handle: RePEc:got:gotcrc:230
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    File URL: http://www2.vwl.wiso.uni-goettingen.de/courant-papers/CRC-PEG_DP_230.pdf
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    Cited by:

    1. Asadullah, M. Niaz & Savoia, Antonio, 2018. "Poverty reduction during 1990–2013: Did millennium development goals adoption and state capacity matter?," World Development, Elsevier, vol. 105(C), pages 70-82.
    2. Luis F. López-Calva & Eduardo Ortiz-Juarez & Carlos Rodríguez-Castelán, 2022. "Within-country poverty convergence: evidence from Mexico," Empirical Economics, Springer, vol. 62(5), pages 2547-2586, May.
    3. Jesús Crespo Cuaresma & Stephan Klasen & Konstantin M. Wacker, 2022. "When Do We See Poverty Convergence?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(6), pages 1283-1301, December.
    4. Zaira Najam & John Gibson, 2021. "Does within-country poverty convergence depend on spatial spillovers and the type of poverty measure? Evidence from Pakistan," Working Papers in Economics 21/07, University of Waikato.

    More about this item

    Keywords

    poverty convergence; income inequality; economic growth; poverty trap; transition economies;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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