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  • McKenzie, David  (6)
  • Deininger, Klaus
  • Washington, D.C : The World Bank  (11)
  • Bielefeld : transcript
  • Wiesbaden : Springer VS
  • Health, Nutrition and Population  (6)
  • Labor Policies  (6)
  • 1
    Online Resource
    Online Resource
    Fears and Tears : Should More People be Moving within and from Developing Countries, and what Stops this Movement? (2022)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: 1 Online-Ressource (28 pages)
    Parallel Title: Erscheint auch als McKenzie, David Fears and Tears: Should More People be Moving within and from Developing Countries, and what Stops this Movement?
    Keywords: Attachment To Home ; Benefits of Urbanization ; Communities and Human Settlements ; Constraints That Limit Movement ; Economics of Migration ; Health, Nutrition and Population ; Human Migrations and Resettlements ; Internal Relocation ; International Economics and Trade ; International Migration ; Mental Health ; Migration Policy ; Psychological Uncertainty of Relocation ; Wealth and Wellbeing
    Abstract: Only one in seven of the world's population has ever migrated, despite the enormous gains in income possible through international and internal movement. This paper examines the evidence for different explanations given in the economics literature for this lack of movement and their implications for policy. Incorrect information about the gains to migrating, liquidity constraints that prevent poor people paying the costs of moving, and high costs of movement arising from both physical transportation costs and policy barriers all inhibit movement and offer scope for policy efforts to inform, provide credit, and lower moving costs. However, the economics literature has paid less attention to the fears people have when faced with the uncertainty of moving to a new place, and to the reasons behind the tears they shed when moving. While these tears reveal the attachment people have to particular places, this attachment is not fixed, but itself changes with migration experiences. Psychological factors such as a bias toward the status quo and the inability to picture what one is giving up by not migrating can result in people not moving, even when they would benefit from movement and are not constrained by finances or policy barriers from doing so. This suggests new avenues for policy interventions that can help individuals better visualize the opportunity costs of not moving, alleviate their uncertainties, and help shift their default behavior from not migrating
    DOI: 10.1596/1813-9450-10128
    URL: lizenzpflichtig
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  • 2
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    Land Rental Markets In The Process of Rural Structural Transformation : Productivity And Equity Impacts In China (2008)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (31 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Deininger, Klaus Land Rental Markets In The Process of Rural Structural Transformation
    Keywords: Banks and Banking Reform ; Distribution Of Income ; Economic Theory and Research ; Employment ; Equalization ; Labor Policies ; Land Use ; Macroeconomics and Economic Growth ; Mandates ; Migration ; Moral Hazard ; Political Economy ; Productivity ; Rural Development Knowledge and Information Systems ; Social Protections and Labor ; Transaction Costs ; Urban Development ; Banks and Banking Reform ; Distribution Of Income ; Economic Theory and Research ; Employment ; Equalization ; Labor Policies ; Land Use ; Macroeconomics and Economic Growth ; Mandates ; Migration ; Moral Hazard ; Political Economy ; Productivity ; Rural Development Knowledge and Information Systems ; Social Protections and Labor ; Transaction Costs ; Urban Development ; Banks and Banking Reform ; Distribution Of Income ; Economic Theory and Research ; Employment ; Equalization ; Labor Policies ; Land Use ; Macroeconomics and Economic Growth ; Mandates ; Migration ; Moral Hazard ; Political Economy ; Productivity ; Rural Development Knowledge and Information Systems ; Social Protections and Labor ; Transaction Costs ; Urban Development
    Abstract: The importance of land rental for overall economic development has long been recognized in theory, yet empirical evidence on the productivity and equity impacts of such markets and the extent to which they realize their potential has been scant. Representative data from China's nine most important agricultural provinces illustrate the impact of rental markets on households' economic strategies and welfare, and the productivity of land use at the plot level. Although there are positive impacts in each of these dimensions, transaction costs constrain participation by many producers, thus preventing rental markets from attaining their full potential. The paper identifies factors that increase transaction costs and provides a rough estimate of the productivity and equity impacts of removing them
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  • 3
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    Assessing The Functioning of Land Rental Markets In Ethiopia (2008)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (32 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Deininger, Klaus Assessing The Functioning of Land Rental Markets In Ethiopia
    Keywords: Communities & Human Settlements ; Cultivation ; Economic Development ; Labor Policies ; Land Leasing ; Land Markets ; Land Owners ; Land Ownership ; Land Rental ; Land Resources ; Land Use ; Land Use and Policies ; Municipal Housing and Land ; Poverty Reduction ; Rural Development ; Rural Development Knowledge and Information Systems ; Rural Land Policies for Poverty Reduction ; Sharecropping ; Social Protections and Labor ; Communities & Human Settlements ; Cultivation ; Economic Development ; Labor Policies ; Land Leasing ; Land Markets ; Land Owners ; Land Ownership ; Land Rental ; Land Resources ; Land Use ; Land Use and Policies ; Municipal Housing and Land ; Poverty Reduction ; Rural Development ; Rural Development Knowledge and Information Systems ; Rural Land Policies for Poverty Reduction ; Sharecropping ; Social Protections and Labor ; Communities & Human Settlements ; Cultivation ; Economic Development ; Labor Policies ; Land Leasing ; Land Markets ; Land Owners ; Land Ownership ; Land Rental ; Land Resources ; Land Use ; Land Use and Policies ; Municipal Housing and Land ; Poverty Reduction ; Rural Development ; Rural Development Knowledge and Information Systems ; Rural Land Policies for Poverty Reduction ; Sharecropping ; Social Protections and Labor
    Abstract: Although a large theoretical literature discusses the possible inefficiency of sharecropping contracts, the empirical evidence on this phenomenon has been ambiguous at best. Household-level fixed-effect estimates from about 8,500 plots operated by households that own and sharecrop land in the Ethiopian highlands provide support for the hypothesis of Marshallian inefficiency. At the same time, a factor adjustment model suggests that the extent to which rental markets allow households to attain their desired operational holding size is extremely limited. Our analysis points towards factor market imperfections (no rental for oxen), lack of alternative employment opportunities, and tenure insecurity as possible reasons underlying such behavior, suggesting that, rather than worrying almost exclusively about Marshallian inefficiency, it is equally warranted to give due attention to the policy framework within which land rental markets operate
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  • 4
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    Migration, remittances, poverty, and human capital : conceptual and empirical challenges (2007)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (16 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Sasin, Marcin J Migration, remittances, poverty, and human capital
    Keywords: Government policies ; Health Monitoring and Evaluation ; Health, Nutrition and Population ; Human Capital ; Impact of migration ; International migration ; Migration ; Migration data ; Policy Research ; Policy Research Working Paper ; Population Policies ; Practitioners ; Remittances ; Government policies ; Health Monitoring and Evaluation ; Health, Nutrition and Population ; Human Capital ; Impact of migration ; International migration ; Migration ; Migration data ; Policy Research ; Policy Research Working Paper ; Population Policies ; Practitioners ; Remittances ; Government policies ; Health Monitoring and Evaluation ; Health, Nutrition and Population ; Human Capital ; Impact of migration ; International migration ; Migration ; Migration data ; Policy Research ; Policy Research Working Paper ; Population Policies ; Practitioners ; Remittances
    Abstract: This paper reviews common challenges faced by researchers interested in measuring the impact of migration and remittances on income, poverty, inequality, and human capital (or, in general, "welfare") as well as difficulties confronting development practitioners in converting this research into policy advice. On the analytical side, the paper discusses the proper formulation of a research question, the choice of the analytical tools, as well as the interpretation of the results in the presence of pervasive endogeneity in all decisions surrounding migration. Particular attention is given to the use of instrumental variables in migration research. On the policy side, the paper argues that the private nature of migration and remittances implies a need to carefully spell out the rationale for interventions. It also notices the lack of good migration data and proper evaluations of migration-related government policies. The paper focuses mainly on microeconomic evidence about international migration, but much of the discussion extends to other settings as well
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  • 5
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    Migration And Mental Health : Evidence From A Natural Experiment (2007)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (31 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Stillman, Steven Migration And Mental Health
    Keywords: Anxiety ; Children ; Depression ; Families ; Health Effects ; Health, Monitoring and Evaluation ; Health, Nutrition and Population ; Hospital Admission ; Insomnia ; Mental ; Mental Health ; Migrants ; Migration ; People ; Refugees ; Anxiety ; Children ; Depression ; Families ; Health Effects ; Health, Monitoring and Evaluation ; Health, Nutrition and Population ; Hospital Admission ; Insomnia ; Mental ; Mental Health ; Migrants ; Migration ; People ; Refugees ; Anxiety ; Children ; Depression ; Families ; Health Effects ; Health, Monitoring and Evaluation ; Health, Nutrition and Population ; Hospital Admission ; Insomnia ; Mental ; Mental Health ; Migrants ; Migration ; People ; Refugees
    Abstract: People migrate to improve their well-being, whether through an expansion of economic and social opportunities or a reduction in persecution. Yet a large literature suggests that migration can be a stressful process, with potentially negative impacts on mental health, reducing the net benefits of migration. However, to truly understand the effect of migration on mental health one must compare the mental health of migrants to what their mental health would have been had they stayed in their home country. The existing literature is not able to do this and typically settles for comparing the mental health of migrants to that of natives in the destination country, which takes no account of any pre-existing differences between these groups. This paper overcomes the selection problems affecting previous studies of the effect of migration on mental health by examining a migrant lottery program. New Zealand allows a quota of Tongans to immigrate each year with a lottery used to choose among the excess number of applicants. A unique survey conducted by the authors in these two countries allows experimental estimates of the mental health effects of migration to be obtained by comparing the mental health of migrants who were successful applicants in the lottery to the mental health of those who applied to migrate under the quota, but whose names were not drawn in the lottery. Migration is found to lead to improvements in mental health, particularly for women and those with poor mental health in their home country
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  • 6
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    A Land of Milk And Honey With Streets Paved With Gold : Do Emigrants Have Over-Optimistic Expectations About Incomes Abroad ? (2007)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (34 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: McKenzie, David A Land of Milk And Honey With Streets Paved With Gold
    Keywords: Accurate Information ; Annual Income ; Bank ; Consumer ; Consumer Goods ; Demands ; Earnings ; Economic Theory and Research ; Education ; Finance and Financial Sector Development ; Financial Literacy ; Fiscal and Monetary Policy ; Health Systems Development and Reform ; Health, Nutrition and Population ; Household Income ; Income ; Income ; Incomes ; Information ; Labor Markets ; Labor Policies ; Macroeconomics and Economic Growth ; Money ; Population Policies ; Public Sector Development ; Remittances ; Social Protections and Labor ; Accurate Information ; Annual Income ; Bank ; Consumer ; Consumer Goods ; Demands ; Earnings ; Economic Theory and Research ; Education ; Finance and Financial Sector Development ; Financial Literacy ; Fiscal and Monetary Policy ; Health Systems Development and Reform ; Health, Nutrition and Population ; Household Income ; Income ; Income ; Incomes ; Information ; Labor Markets ; Labor Policies ; Macroeconomics and Economic Growth ; Money ; Population Policies ; Public Sector Development ; Remittances ; Social Protections and Labor ; Accurate Information ; Annual Income ; Bank ; Consumer ; Consumer Goods ; Demands ; Earnings ; Economic Theory and Research ; Education ; Finance and Financial Sector Development ; Financial Literacy ; Fiscal and Monetary Policy ; Health Systems Development and Reform ; Health, Nutrition and Population ; Household Income ; Income ; Income ; Incomes ; Information ; Labor Markets ; Labor Policies ; Macroeconomics and Economic Growth ; Money ; Population Policies ; Public Sector Development ; Remittances ; Social Protections and Labor
    Abstract: Millions of people emigrate every year in search of better economic and social opportunities. Anecdotal evidence suggests that emigrants may have over-optimistic expectations about the incomes they can earn abroad, resulting in excessive migration pressure, and in disappointment among those who do migrate. Yet there is almost no statistical evidence on how accurately these emigrants predict the incomes that they will earn working abroad. In this paper the authors combine a natural emigration experiment with unique survey data on would-be emigrants' probabilistic expectations about employment and incomes in the migration destination. Their procedure enables them to obtain moments and quantiles of the subjective distribution of expected earnings in the destination country. The authors find a significant underestimation of both unconditional and conditional labor earnings at all points in the distribution. This underestimation appears driven in part by potential migrants placing too much weight on the negative employment experiences of some migrants, and by inaccurate information flows from extended family, who may be trying to moderate remittance demands by understating incomes
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  • 7
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    Self-Selection Patterns In Mexico-U.S. Migration : The Role of Migration Networks (2007)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (28 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: McKenzie, David Self-Selection Patterns In Mexico-U.S. Migration
    Keywords: Anthropology ; Communities & Human Settlements ; Culture & Development ; Finance and Financial Sector Development ; Financial Literacy ; Gender ; Gender and Social Development ; Health, Nutrition and Population ; Human Migrations and Resettlements ; Immigrants ; Immigration ; Important Policy ; Income Inequality ; Industry ; International Migration ; Job Opportunities ; Labor Market ; Language Proficiency ; Migrant ; Migrants ; Migration ; Population Policies ; Social Development ; Technology Industry ; Voluntary and Involuntary Resettlement ; Anthropology ; Communities & Human Settlements ; Culture & Development ; Finance and Financial Sector Development ; Financial Literacy ; Gender ; Gender and Social Development ; Health, Nutrition and Population ; Human Migrations and Resettlements ; Immigrants ; Immigration ; Important Policy ; Income Inequality ; Industry ; International Migration ; Job Opportunities ; Labor Market ; Language Proficiency ; Migrant ; Migrants ; Migration ; Population Policies ; Social Development ; Technology Industry ; Voluntary and Involuntary Resettlement ; Anthropology ; Communities & Human Settlements ; Culture & Development ; Finance and Financial Sector Development ; Financial Literacy ; Gender ; Gender and Social Development ; Health, Nutrition and Population ; Human Migrations and Resettlements ; Immigrants ; Immigration ; Important Policy ; Income Inequality ; Industry ; International Migration ; Job Opportunities ; Labor Market ; Language Proficiency ; Migrant ; Migrants ; Migration ; Population Policies ; Social Development ; Technology Industry ; Voluntary and Involuntary Resettlement
    Abstract: The authors examine the role of migration networks in determining self-selection patterns of Mexico-U.S. migration. They first present a simple theoretical framework showing how such networks impact on migration incentives at different education levels and, consequently, how they are likely to affect the expected skill composition of migration. Using survey data from Mexico, the authors then show that the probability of migration is increasing with education in communities with low migrant networks, but decreasing with education in communities with high migrant networks. This is consistent with positive self-selection of migrants being driven by high migration costs, and with negative self-selection of migrants being driven by lower returns to education in the U.S. than in Mexico
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  • 8
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    Do Overlapping Property Rights Reduce Agricultural Investment ? : Evidence From Uganda (2007)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (29 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Deininger, Klaus Do Overlapping Property Rights Reduce Agricultural Investment ?
    Keywords: Agriculture ; Classification ; Common Property Resource Development ; Communities & Human Settlements ; Conservation ; Economic growth ; Fruits ; Labor Policies ; Land management ; Land ownership ; Land use ; Municipal Housing and Land ; Plots ; Real Estate Development ; Rural Development ; Social Protections and Labor ; Water Resources ; Wetlands ; Wetlands ; Agriculture ; Classification ; Common Property Resource Development ; Communities & Human Settlements ; Conservation ; Economic growth ; Fruits ; Labor Policies ; Land management ; Land ownership ; Land use ; Municipal Housing and Land ; Plots ; Real Estate Development ; Rural Development ; Social Protections and Labor ; Water Resources ; Wetlands ; Wetlands ; Agriculture ; Classification ; Common Property Resource Development ; Communities & Human Settlements ; Conservation ; Economic growth ; Fruits ; Labor Policies ; Land management ; Land ownership ; Land use ; Municipal Housing and Land ; Plots ; Real Estate Development ; Rural Development ; Social Protections and Labor ; Water Resources ; Wetlands ; Wetlands
    Abstract: The need for land-related investment to ensure sustainable land management and increase productivity of land use is widely recognized. However, there is little rigorous evidence on the effects of property rights for increasing agricultural productivity and contributing toward poverty reduction in Africa. Whether and by how much overlapping property rights reduce investment incentives, and the scope for policies to counter such disincentives, are thus important policy issues. Using information on parcels under ownership and usufruct by the same household from a nationally representative survey in Uganda, the authors find significant disincentives associated with overlapping property rights on short and long-term investments. The paper combines this result with information on crop productivity to obtain a rough estimate of the magnitudes involved. The authors make suggestions on ways to eliminate such inefficiencies
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  • 9
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    Using The Global Positioning System In Household Surveys For Better Economics And Better Policy (2007)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (29 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: McKenzie, David Using The Global Positioning System In Household Surveys For Better Economics And Better Policy
    Keywords: Accessibility ; Air ; Aircraft ; Costs ; E-Business ; Externalities ; Health Monitoring and Evaluation ; Health, Nutrition and Population ; Infrastructure ; Policies ; Private Sector Development ; Railway ; Railway Lines ; Road ; Road Network ; Roads ; Roads and Highways ; Signals ; Training ; Transport ; Transport Economics, Policy and Planning ; Accessibility ; Air ; Aircraft ; Costs ; E-Business ; Externalities ; Health Monitoring and Evaluation ; Health, Nutrition and Population ; Infrastructure ; Policies ; Private Sector Development ; Railway ; Railway Lines ; Road ; Road Network ; Roads ; Roads and Highways ; Signals ; Training ; Transport ; Transport Economics, Policy and Planning ; Accessibility ; Air ; Aircraft ; Costs ; E-Business ; Externalities ; Health Monitoring and Evaluation ; Health, Nutrition and Population ; Infrastructure ; Policies ; Private Sector Development ; Railway ; Railway Lines ; Road ; Road Network ; Roads ; Roads and Highways ; Signals ; Training ; Transport ; Transport Economics, Policy and Planning
    Abstract: Distance and location are important determinants of many choices that economists study. While these variables can sometimes be obtained from secondary data, economists often rely on information that is self-reported by respondents in surveys. These self-reports are used especially for the distance from households or community centers to various features such as roads, markets, schools, clinics, and other public services. There is growing evidence that self-reported distance is measured with error and that these errors are correlated with outcomes of interest. In contrast to self-reports, the Global Positioning System (GPS) can determine almost exact location (typically within 15 meters). The falling cost of GPS receivers (typically below US
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  • 10
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    Why Liberalization Alone Has Not Improved Agricultural Productivity in Zambia : The Role of Asset Ownership and Working Capital Constraints (2000)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (28 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Deininger, Klaus Why Liberalization Alone Has Not Improved Agricultural Productivity in Zambia
    Keywords: Cred Demand ; Economic Theory and Research ; Exports ; Finance and Financial Sector Development ; Financial Literacy ; Fiscal Policies ; GDP ; Goods ; Inputs ; Labor Policies ; Macro-Economic Policies ; Macroeconomics and Economic Growth ; Markets ; Markets and Market Access ; Overvalued Exchange Rates ; Ownership ; Prices ; Production ; Production Function ; Productive Assets ; Productivity ; Risk Aversion ; Social Protections and Labor ; Subsidies ; Total Factor Productivity ; Welfare ; Cred Demand ; Economic Theory and Research ; Exports ; Finance and Financial Sector Development ; Financial Literacy ; Fiscal Policies ; GDP ; Goods ; Inputs ; Labor Policies ; Macro-Economic Policies ; Macroeconomics and Economic Growth ; Markets ; Markets and Market Access ; Overvalued Exchange Rates ; Ownership ; Prices ; Production ; Production Function ; Productive Assets ; Productivity ; Risk Aversion ; Social Protections and Labor ; Subsidies ; Total Factor Productivity ; Welfare ; Cred Demand ; Economic Theory and Research ; Exports ; Finance and Financial Sector Development ; Financial Literacy ; Fiscal Policies ; GDP ; Goods ; Inputs ; Labor Policies ; Macro-Economic Policies ; Macroeconomics and Economic Growth ; Markets ; Markets and Market Access ; Overvalued Exchange Rates ; Ownership ; Prices ; Production ; Production Function ; Productive Assets ; Productivity ; Risk Aversion ; Social Protections and Labor ; Subsidies ; Total Factor Productivity ; Welfare
    Abstract: March 2000 - Policies to foster accumulation of the assets needed for agricultural production (including draft animals and implements) and to provide complementary public goods (education, credit, and good agricultural extension services) could greatly help reduce poverty and improve productivity in Zambia. Deininger and Olinto use a large panel data set from Zambia to examine factors that could explain the relatively lackluster performance of the country's agricultural sector after liberalization. Zambia's liberalization significantly opened the economy but failed to alter the structure of production or help realize efficiency gains. They reach two main conclusions. First, not owning productive assets (in Zambia, draft animals and implements) limits improvements in agricultural productivity and household welfare. Owning oxen increases income directly, allows farmers to till their fields efficiently when rain is delayed, increases the area cultivated, and improves access to credit and fertilizer markets. Second, the authors reject the hypothesis that the application of fertilizer is unprofitable because of high input prices. Rather, fertilizer use appears to have declined because of constraints on supplies, which government intervention exacerbated instead of alleviating. (Extending the use of fertilizer to the many producers not currently using it would be profitable, but increasing the amount applied by the few producers who now have access to it would not be.) Policies to foster accumulation of the assets needed for agricultural production (including draft animals and implements) and to provide complementary public goods (education, credit, and good agricultural extension services) could greatly help reduce poverty and improve productivity. This paper - a product of Rural Development, Development Research Group - is part of a larger effort in the group to analyze determinants of rural growth and market participation. The authors may be contacted at kdeiningerworldbank.org or polinto@worldbank.org
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  • 11
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    Asset Distribution, Inequality, and Growth (1999)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (34 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Deininger, Klaus Asset Distribution, Inequality, and Growth
    Keywords: Asset Distribution ; Asset Inequality ; Consumption ; Economic Growth ; Economic Policy ; Economic Theory and Research ; Empirical Evidence ; Equity and Development ; Exogenous Shocks ; Factor Endowments ; Finance and Financial Sector Development ; Financial Literacy ; Growth Literature ; Growth Regressions ; Human Capital ; Income ; Income Inequality ; Inequality ; Inequality ; Inequality-Growth Relationship ; Investment and Investment Climate ; Labor Policies ; Long-Term Growth ; Macroeconomics and Economic Growth ; Negative Impact ; Negative Relationship ; Policy Level ; Political Economy ; Poverty Impact Evaluation ; Poverty Reduction ; Pro-Poor Growth ; Property Rights ; Rural Development ; Rural Poverty Reduction ; Social Protections and Labor ; Asset Distribution ; Asset Inequality ; Consumption ; Economic Growth ; Economic Policy ; Economic Theory and Research ; Empirical Evidence ; Equity and Development ; Exogenous Shocks ; Factor Endowments ; Finance and Financial Sector Development ; Financial Literacy ; Growth Literature ; Growth Regressions ; Human Capital ; Income ; Income Inequality ; Inequality ; Inequality ; Inequality-Growth Relationship ; Investment and Investment Climate ; Labor Policies ; Long-Term Growth ; Macroeconomics and Economic Growth ; Negative Impact ; Negative Relationship ; Policy Level ; Political Economy ; Poverty Impact Evaluation ; Poverty Reduction ; Pro-Poor Growth ; Property Rights ; Rural Development ; Rural Poverty Reduction ; Social Protections and Labor
    Abstract: June 2000 - Policymakers addressing the impact of inequality on growth should be more concerned about households' access to assets - and to the opportunities associated with them - than about the distribution of income. Asset inequality - but not income inequality - has a relatively great negative impact on growth and also reduces the effectiveness of educational interventions. With the recent resurgence of interest in equity, inequality, and growth, the possibility of a negative relationship between inequality and economic growth has received renewed interest in the literature. Faced with the prospect that high levels of inequality may persist and give rise to poverty traps, policymakers are paying more attention to the distributional implications of macroeconomic policies. Because high levels of inequality may hurt overall growth, policymakers are exploring measures to promote growth and equity at the same time. How the consequences of inequality are analyzed, along with the possible cures, depends partly on how inequality is measured. Deininger and Olinto use assets (land) rather than income - and a GMM estimator - to examine the robustness of the relationship between inequality and growth that has been observed in the cross-sectional literature but has been drawn into question by recent studies using panel techniques. They find evidence that asset inequality - but not income inequality - has a relatively large negative impact on growth. They also find that a highly unequal distribution of assets reduces the effectiveness of educational interventions. This means that policymakers should be more concerned about households' access to assets, and to the opportunities associated with them, than about the distribution of income. Long-term growth might be improved by measures to prevent large jumps in asset inequality - possibly irreversible asset loss because of exogenous shocks - and by policies to facilitate asset accumulation by the poor. This paper - a product of Rural Development, Development Research Group - is part of a larger effort in the group to examine the determinants and impact of inequality. The authors may be contacted at kdeiningerworldbank.org or polinto@worldbank.org
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