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When Do We See Poverty Convergence?*
Author(s) -
Crespo Cuaresma Jesús,
Klasen Stephan,
Wacker Konstantin M.
Publication year - 2022
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/obes.12492
Subject(s) - poverty , convergence (economics) , inequality , economics , economic inequality , econometrics , income distribution , demographic economics , development economics , mathematics , macroeconomics , economic growth , mathematical analysis
We show why convergence in mean income levels and the negative relation between mean income growth and poverty changes need not lead to proportionate poverty convergence across countries. We propose an analytical framework that highlights that poverty convergence depends on the speed of income convergence relative to a complex interaction of initial inequality, mean income levels, and inequality dynamics. Our framework allows us to investigate poverty convergence, or the lack thereof, under different plausible dynamics of mean income and inequality.