The Role of Income Inequality for Poverty Reduction

Bergstrom, Katy

doi:10.1093/wber/lhab026

Cited by 19 publications

(23 citation statements)

References 35 publications

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“…It can generate positive circles of prosperity and opportunities and thus foster human development, which in turn fosters economic growth. Analyzing the dynamics of extreme poverty (USD $1.90 per day on the poverty line), Bergstrom [ 64 ] states that 90% of the volatility in poverty rates can be explained by changes in GDP per capita. As for the economies of the old EU countries, they are much more developed, which translates into a higher value of GDP, and thus contributes to achieving lower poverty levels in these countries.…”

Section: Discussionmentioning

confidence: 99%

Assessment of the Development of Poverty in EU Countries

Sompolska-Rzechuła

Kurdyś-Kujawska

2022

IJERPH

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The aim of the article is to assess of development of poverty in EU countries in 2010 and 2019. The study used the model method of the linear ordering of objects—TOPSIS, considering the distance of each object from both the pattern and the non-pattern development. The originality of the work consists in the use of primary data obtained from the Eurostat database and the winsorized data that were created on the basis of outliers. The indicators characterizing the first goal of sustainable development—“No poverty” were used. The results of the research indicate that the inhabitants of western Europe and Scandinavia are less affected by poverty than the population of eastern and southern Europe. The division of countries according to the scale of poverty is reflected in the level of GDP per capita.

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Section: Discussionmentioning

confidence: 99%

Assessment of the Development of Poverty in EU Countries

Sompolska-Rzechuła

Kurdyś-Kujawska

2022

IJERPH

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“…Previous studies have explored this potential conflict by focusing on the greenhouse gas emissions linked to the consumption of the world's poorest. [3][4][5] However, as most poverty reduction comes about because of economic growth [6][7][8][9] , ending poverty will entail increasing not only the consumption of poor people but also the consumption of non-poor people in poor countries. Here we estimate the emissions associated with the economic growth needed to eradicate poverty.…”

Section: Summary Paragraphmentioning

confidence: 99%

“…Poverty reduction occurs by a combination of economic growth and distribution of this growth across households, with 90% of historical poverty alleviation driven by economic growth. [6][7][8][9] We estimate the carbon emissions implications of various growth scenarios (for aggregate growth and the distribution of this growth among the population) under which poverty would be eradicated. With this framing, eradicating poverty requires not only to increase the consumption of poor people but also, under realistic assumptions for the distribution of growth based on historical patterns, to increase the consumption of non-poor people.…”

Section: Summary Paragraphmentioning

confidence: 99%

The Climate Implications of Ending Global Poverty

Hallegatte¹,

Wollburg²,

Mahler³

2023

Preprint

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Previous studies have explored potential conflicts between ending poverty and limiting global warming by focusing on the carbon emissions linked to the consumption of the world’s poorest. Here we instead focus on economic growth as the main driver of poverty alleviation and estimate the emissions associated with the economic growth needed to eradicate poverty. With this framing, eradicating poverty requires not only to increase the consumption of poor people but also the consumption of non-poor people in poor countries. Even in this more pessimistic framing and with historical energy- and carbon-intensity patterns, the global emissions increase associated with eradicating extreme poverty is small, at 2.37 GtCO2e per year or 4.9% of 2019 global emissions, relative to a scenario without poverty alleviation. These additional emissions would not affect materially the climate change challenge for the rest of the world: global energy emissions would need to be reduced by 2.08 GtCO2e per year, instead of 2.0 GtCO2e per year needed in the absence of any progress towards extreme poverty eradication. Lower inequality, higher energy efficiency, and decarbonization of energy can significantly ease this trade-off: assuming the best historical performance in all countries, in part a conservative scenario considering recent progress in green technologies, the additional emissions for poverty eradication in 2050 are reduced by 90%. At the global level, therefore, the need to eradicate extreme poverty cannot be used as a justification for reducing the world’s climate ambitions. When trade-offs exist for specific policies or investments, the eradication of extreme poverty can be prioritized with negligible emissions implications. More ambitious poverty targets require more economic growth in more countries which creates more acute trade-offs. The estimated emissions increase in 2050 of eradicating poverty is 7.4 GtCO2e (or 15.3% of 2019 emissions) with the lower-middle-income poverty line at $3.65 per day and 22.1 GtCO2e (or 45.7% of 2019 emissions) with the $6.85 upper-middle-income poverty line. The challenge to align the world’s development and climate objectives is not in reconciling extreme poverty alleviation with climate objectives but in providing middle-income standards of living in a sustainable manner.

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“…The reason is that income redistribution policies (in this case, progressive taxes) can hinder economic growth. After all, groups of wealthy individuals will reduce the labor supply in response to too high taxes (Bergstrom, 2022). Reducing the unemployment rate has been heralded both nationally and internationally as a way to elevate the standard of living of disadvantaged people.…”

Section: Literature Reviewmentioning

confidence: 99%

How Population, Economic, Inequality and Unemployment Contribute Affect Indonesian’s Poverty

Hutabarat

Syahnur

Dawood

2023

IJASSH

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In the globalization era, poverty is one of the world's fundamental problems, especially in developing countries. With living standards often poor in developing countries, poverty will only get worse in the future. Thus, the current study investigates the relationship between poverty with population growth, economic growth, income inequality, and the unemployment rate in Indonesia. The data used is data from 33 provinces compiled by the Indonesian Central Bureau of Statistics. The results showed that population growth positively affected poverty severity. The economic growth variable has a positive effect on the poverty rate. Income inequality has a positive effect on the poverty gap and poverty severity. Also, the unemployment rate variable positively affects the poverty rate, poverty gap, and poverty severity. Based on these findings, it is suggested that the government maintain stable population growth, create an economy that all groups can enjoy, equitable distribution of infrastructure, social and economic development, and provide more employment opportunities. In addition, a poverty alleviation policy is needed that is sustainable from time to time.

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The Role of Income Inequality for Poverty Reduction

Cited by 19 publications

References 35 publications

Assessment of the Development of Poverty in EU Countries

Assessment of the Development of Poverty in EU Countries

The Climate Implications of Ending Global Poverty

How Population, Economic, Inequality and Unemployment Contribute Affect Indonesian’s Poverty

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