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  • 1
    Language: English
    Pages: Online-Ressource (35 p)
    Edition: 2010 World Bank eLibrary
    Parallel Title: Ferreira , Francisco H. G Distributions in motion
    Abstract: The joint determination of aggregate economic growth and distributional change has been studied empirically from at least three different perspectives. A macroeconomic approach that relies on cross-country data on poverty, inequality, and growth rates has generated some interesting stylized facts about the correlations between these variables, but has not shed much light on the underlying determinants. "Meso-" and microeconomic approaches have fared somewhat better. The microeconomic approach, in particular, builds on the observation that growth, changes in poverty, and changes in inequality are simply different aggregations of information on the incidence of economic growth along the income distribution. This paper reviews the evolution of attempts to understand the nature of growth incidence curves, from the statistical decompositions associated with generalizations of the Oaxaca-Blinder method, to more recent efforts to generate "economically consistent" counterfactuals, drawing on structural, reduced-form, and computable general equilibrium models
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  • 2
    Language: English
    Pages: Online-Ressource (44 p)
    Edition: 2011 World Bank eLibrary
    Parallel Title: Ferreira, Francisco H. G Rising Food Prices and Household Welfare
    Abstract: Food price inflation in Brazil in the twelve months to June 2008 was 18 percent, while overall inflation was 5.3 percent. This paper uses spatially disaggregated monthly data on consumer prices and two different household surveys to estimate the welfare consequences of these food price increases, and their distribution across households. Because Brazil is a large food producer, with a predominantly wage-earning agricultural labor force, our estimates include general equilibrium effects on market and transfer incomes, as well as the standard estimates of changes in consumer surplus. While the expenditure (or consumer surplus) effects were large, negative and markedly regressive everywhere, the market income effect was positive and progressive, particularly in rural areas. Because of this effect on the rural poor, and of the partial protection afforded by increases in two large social assistance benefits, the overall impact of higher food prices in Brazil was U-shaped, with the middle-income groups suffering larger proportional losses than the very poor. Nevertheless, since Brazil is 80 percent urban, higher food prices still led to a greater incidence and depth of poverty at the national level
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  • 3
    Language: English
    Pages: 1 Online-Ressource (67 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Ferreira, Francisco H G A Global Count of the Extreme Poor in 2012: Data Issues, Methodology and Initial Results
    Abstract: The 2014 release of a new set of purchasing power parity conversion factors (PPPs) for 2011 has prompted a revision of the international poverty line. In order to preserve the integrity of the goalposts for international targets such as the Sustainable Development Goals and the World Bank's twin goals, the new poverty line was chosen so as to preserve the definition and real purchasing power of the earlier
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  • 4
    Language: English
    Pages: 1 Online-Ressource (42 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Ferreira, Francisco H. G Equality of Opportunity
    Abstract: Building on earlier work by political philosophers, economists have recently sought to define a concept of equity that accommodates the fairness of reward to individual responsibility and effort, while allowing for the existence of some inequalities which are unfair and should be compensated. This paper-commissioned as a chapter for the Oxford Handbook of Well Being and Public Policy-provides a critical review of the economic literature on equality and inequality of opportunity. A simple 'canonical model' of equal opportunity is proposed, and used to explore the two fundamental concepts in this (relatively) new theory of social justice: the principles of compensation and reward. Ex-ante and ex-post versions of the compensation principle are presented, and the tensions between them are discussed. Different approaches to the measurement of inequality of opportunity-and empirical applications-are reviewed, and implications for the measurement of poverty and of the rate of economic development are discussed
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  • 5
    Language: English
    Pages: 1 Online-Ressource
    Series Statement: Other papers
    Series Statement: World Bank E-Library Archive
    Abstract: This paper seeks to measure inequality of opportunity for education in turkey, taking into account both the quantity (attainment) and the quality of schooling (achievement). Using DHS data, large gaps in age-enrollment profiles are documented across genders, regions, and family backgrounds. The gender gap is particularly pronounced in the Easter provinces, in rural areas, and for poorer and larger households. PISA data show that morally irrelevant circumstances also affect achievement. The lower bound for the share of the variance in test scores that is accounted for by such circumstances in between a quarter and a third, depending on the subject and on the procedure adopted to correct for sample selection. Among those circumstances, family background variables such as parental education, father's occupation and the ownership of books, cultural possessions and electronics, seem to account for the largest inequality shares. Once the composition of families is controlled for, spatial location is considerably less important
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  • 6
    Language: English
    Pages: 1 Online-Ressource
    Series Statement: Other papers
    Series Statement: World Bank E-Library Archive
    Abstract: Using information on asset ownership, housing quality, and access to services to construct an indicator of household wealth, the author estimates the share of inequality among prime-age Turkish women that can be attributed to unequal opportunities. Both parametric and non-parametric estimation methods are used, and robustness to some sample redefinitions is verified. The author find that at least one-third (one-fourth) of overall wealth (imputed consumption) inequality in Turkey is associated with morally irrelevant, pre-determined circumstances. The circumstances that account for the largest share of the variance are rural or urban birth area and father's education. Controlling for rural birth, parents' education, language spoken at home, and number of siblings, a three-way regional breakdown of birthplace is not an important predictor of wealth. An opportunity deprivation profile reveals that more than two thirds of the most deprived group in Turkey consists of women born in the rural areas of the Eastern region, from mothers with no formal education
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  • 7
    Language: English
    Pages: 1 Online-Ressource (40 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Ferreira, Francisco H. G Appraising Cross-National Income Inequality Databases: An Introduction
    Abstract: In response to a growing interest in comparing inequality levels and trends across countries, several cross-national inequality databases are now available. These databases differ considerably in purpose, coverage, data sources, inclusion and exclusion criteria, and quality of documentation. A special issue of the Journal of Economic Inequality, which this paper introduces, is devoted to an assessment of the merits and shortcomings of eight such databases. Five of these sets are microdata-based: CEPALSTAT, Income Distribution Database, Luxembourg Income Study, PovcalNet, and Socio-Economic Database for Latin America and the Caribbean. Two are based on secondary sources: All the Ginis and the World Income Inequality Database; and one is generated entirely through multiple-imputation methods: the Standardized World Income Inequality Database. Although there is much agreement across these databases, there is also a nontrivial share of country/year cells for which substantial discrepancies exist. In some cases, different databases would lead users to radically different conclusions about inequality dynamics in certain countries and periods. The methodological differences that lead to these discrepancies often appear to be driven by a fundamental trade-off between a wish for broader coverage on the one hand, and for greater comparability on the other hand. These differences across databases place considerable responsibility on both producers and users: on the former, to better document and explain their assumptions and procedures, and on the latter, to understand the data they are using, rather than merely taking them as true because available
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  • 8
    Language: English
    Pages: 1 Online-Ressource (61 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Ferreira, Francisco H. G Estimation and Inference for Actual and Counterfactual Growth Incidence Curves
    Abstract: Different episodes of economic growth display widely varying distributional characteristics, both across countries and over time. Growth is sometimes accompanied by rising and sometimes by falling inequality. Applied economists have come to rely on the Growth Incidence Curve, which gives the quantile-specific rate of income growth over a certain period, to describe and analyze the incidence of economic growth. This paper discusses the identification conditions, and develops estimation and inference procedures for both actual and counterfactual growth incidence curves, based on general functions of the quantile potential outcome process over the space of quantiles. The paper establishes the limiting 0 distribution of the test statistics of interest for those general functions, and proposes resampling methods to implement inference in practice. The proposed methods are illustrated by a comparison of the growth processes in the United States and Brazil during 1995-2007. Although growth in the average real wage was disappointing in both countries, the distribution of that growth was markedly different. In the United States, wage growth was mediocre for the bottom 80 percent of the sample, but much more rapid for the top 20 percent. In Brazil, conversely, wage growth was rapid below the median, and negative at the top. As a result, inequality rose in the United States and fell markedly in Brazil
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  • 9
    Language: English
    Pages: Online-Ressource (40 p)
    Edition: 2014 World Bank eLibrary
    Parallel Title: Ferreira, Francisco H. G Inequality of Opportunity and Economic Growth
    Abstract: Income differences arise from many sources. While some kinds of inequality, caused by effort differences, might be associated with faster economic growth, other kinds, arising from unequal opportunities for investment, might be detrimental to economic progress. This study uses two new metadata sets, consisting of 118 household surveys and 134 Demographic and Health Surveys, to revisit the question of whether inequality is associated with economic growth and, in particular, to examine whether inequality of opportunity-driven by circumstances at birth-has a negative effect on subsequent growth. The results are suggestive but not robust: while overall income inequality is generally negatively associated with growth in the household survey sample, we find no evidence that this is due to the component associated with unequal opportunities. In the Demographic and Health Surveys sample, both overall wealth inequality and inequality of opportunity have a negative effect on growth in some of the preferred specifications, but the results are not robust to relatively minor changes. On balance, although the results are suggestive of a negative association between inequality and growth, the data do not permit robust conclusions as to whether inequality of opportunity is bad for growth
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  • 10
    Language: English
    Pages: 1 Online-Ressource (45 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Ferreira, Francisco H. G Ageing Poorly? Accounting for the decline in earnings inequality in Brazil, 1995-2012
    Abstract: The Gini coefficient of labor earnings in Brazil fell by nearly a fifth between 1995 and 2012, from 0.50 to 0.41. The decline in earnings inequality was even larger by other measures, with the 90-10 percentile ratio falling by almost 40 percent. Although the conventional explanation of a falling education premium did play a role, an RIF regression-based decomposition analysis suggests that the decline in returns to potential experience was the main factor behind lower wage disparities during the period. Substantial reductions in the gender, race, informality and urban-rural wage gaps, conditional on human capital and institutional variables, also contributed to the decline. Although rising minimum wages were equalizing during 2003-2012, they had the opposite effects during 1995-2003, because of declining compliance. Over the entire period, the direct effect of minimum wages on inequality was muted
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