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Two Decades of Declining Poverty but Rising Inequality in Laos
Author(s) -
Warr Peter,
Rasphone Sitthiroth,
Me Jayant
Publication year - 2018
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/asej.12147
Subject(s) - inequality , gini coefficient , economics , poverty , consumption (sociology) , demographic economics , economic inequality , development economics , income inequality metrics , economic growth , sociology , mathematical analysis , social science , mathematics
Over the past two decades consumption inequality has risen within Laos, while absolute poverty incidence has halved. The estimated Gini coefficient of private household expenditures per person rose from 0.311 to 0.364. This increase in the sample‐based estimate of inequality was statistically significant and occurred in all regions, in both rural and urban areas and among all major ethnic, educational and sectoral employment categories. Within‐group increases in inequality dominated between‐group changes. Official policy largely overlooks this point, focusing on reducing inequality between rather than within major groups. Economic inequality seems certain to become a more pressing policy concern.