Income Poverty Research Articles

Determinants of Health Inequity in Sub-Saharan Africa Health Economics

This paper examined the determinants of health inequity in fifteen (15) Sub-Saharan African economies for a period of seventeen (17) years spanning from 2004 to 2020. Data were sourced from the World Bank (2020), World Food Programme (2020), WHO Global Health Expenditure database (2020), and global database on child growth and malnutrition (2020). Child malnutrition measured by incidence of malnourished children under the age of five was used to proxy health inequity, while net official flows from world food programmes, income poverty, GDP per capita, and domestic general government health expenditure per capita were used as explanatory variables. Panel Fully Modified Least Squares (FMOLS) regression technique was employed. The result showed that one-period lagged of health inequity (HINEQ (-1)), one-period lagged of domestic general government health expenditure per capita (DGGHEPC (-1)), net official flows from world food programme (NOFWFP), and income poverty (INPOV) exerts positive impact, whereas GDP per capita (GDPPC), INPOV (-1), NOFWFP (-1) and DGGHEPC exerts negative impact on the Child malnutrition in Sub-Sahara Africa. However, only NOFWFP (-1), INPOV and DGGHEPC with their lagged values had a statistically significant impact on Child malnutrition in Sub-Sahara Africa. Thus, there is need for budget increase allocation to health and humanitarian sectors in Sub-Saharan African to boost basic health and nutritional needs particularly for disadvantaged households. Also, GDP per capita should be raised in order to reduce poverty levels and combat child malnutrition.

Inequality, poverty, and child benefits: evidence from a natural experiment

ABSTRACT In this article, we empirically address the link between policy, and inequality and child poverty. Our analysis fills a gap in policy assessment research by examining the effect of introducing a cash universal child benefit (the program Family 500+ in 2016 in Poland) on income inequality and poverty, specifically child poverty. The analysis utilizes micro-level household data from the Luxembourg Income Study (LIS) and Statistics Poland. We examine the changes in various indicators of inequality and poverty and their decomposition. All conducted distributional analyses suggest that a decrease in income inequality and poverty reduction is attributable to the program Family 500 + . We assess relative and subjective poverty and show that both are influenced by the program. The causal relationship between the benefit and the decline in child relative and subjective poverty is confirmed by difference-in-differences estimation, in which treated and non-treated households are compared before and after the program’s introduction.

Household Income, Neighborhood Poverty, and Epigenetic Age: Differences Between Men and Women.

Epigenetic changes may partially explain the SES-health gradient, with lower SES associated with accelerated biological aging. Men and women differ in several aspects of this SES-health gradient, with women having lower income and having more health conditions compared with men. Some research documents an even stronger SES-health link among women. The present study investigated gender differences in SES-epigenetic age associations. Using data from the Midlife in the United States Study (men n=353, women n=367), we conducted weighted linear regressions to test the hypotheses that lower household income and greater neighborhood poverty would be associated with accelerated epigenetic age assessed on three epigenetic clocks (i.e., PhenoAge, GrimAge, and DunedinPACE), particularly for women. Household income did not significantly interact with gender in relation to PhenoAge or GrimAge. Higher household income was associated with decelerated DunedinPACE, but only among men (simple slope estimate=-0.01, P<0.001), not women (simple slope estimate=-0.00, P=0.37). Neighborhood poverty was associated with significantly accelerated PhenoAge (simple slope estimate=13.25, P<0.001) and GrimAge (simple slope estimate=6.07, P=0.002) among women, but was associated with significantly decelerated PhenoAge (simple slope estimate=-19.52, P<0.001) and GrimAge (simple slope estimate=-4.81, P=0.021) among men. Findings suggest nuanced associations between SES and epigenetic age and highlight notable differences between men and women. The gender differences observed in the present findings further reiterate the importance of closing the gender gap in SES.

How “shock-proof” are child well-being indices in high-income countries? Implications for research and policy post-crisis

Abstract The COVID-19 pandemic and the cost-of-living crisis have raised concerns about the relevance and reliability of current measures and indices of child well-being. This article aims to bridge a significant knowledge gap by examining how these indices respond to shocks and exploring attributes of shock-responsive indicators related to child well-being. Drawing on the UNICEF Innocenti Report Card 16 on child well-being and the Korean Child Well-being Index, the study conducts a comparative analysis of differences in the design and purpose of indices that influence their resilience to shocks. Subsequently, it proposes an approach for evaluating the ‘shock-responsiveness’ of key outcome indicators of child well-being before going on to review how child income poverty measures performed during COVID-19 and the cost-of-living crisis. After finding that child well-being indices, at present, are not able to fully capture the effects of covariate crises on children, the article concludes with insights for policymakers and researchers.

Electricity Consumption, Roads and Their Infrastructure; Strategies to Increase Per Capita Income and Reduce Poverty in East Nusa Tenggara

Low electricity consumption, restricted road length, and insufficient road infrastructure are believed to contribute to low per capita income and high poverty rates in East Nusa Tenggara. To substantiate this hypothesis, a study was undertaken in that province and the population are 21 districts and one city. This study analyzed data from 2019 to 2023 and utilized the Panel Data Regression analysis method. The findings of this study indicate that electricity consumption significantly impacts the increase in per capita income. Conversely, to alleviate poverty, the variable of road length exerts a significant influence. However, road infrastructure variables have shown no effect on boosting per capita income or reducing poverty. Formulation of strategies to diminish poverty while augmenting per capita income was conducted through the Analytical Network Process (ANP) analysis tool, involving nine stakeholders and decision-makers within the region. ANP is a supportive tool in decision-making processes that has many criterias and sub criterias. The agreed-upon strategy focuses on three primary priorities: enhancing community electricity consumption, extending road lengths, and enhancing road infrastructure.

How do regional price levels affect income inequality? Household-level evidence from countries worldwide

Regional differences in price levels are substantial in many countries, but little is known about how they affect the measurement of income inequality and poverty. To bridge this gap, we construct a new regional price level database which combines indices published by official authorities, previous literature, and our original estimates. The database covers 23 countries including the world’s seven biggest economies. The combination of these indices with household-level data from the Luxembourg Income Study allows us to assess changes in indicators of income inequality and relative poverty caused by the adjustment of income for within-country price level differences. Our findings point to the necessity of considering the properties of specific indicators while assessing the potential effects of regional price levels.

Analisis Pertumbuhan Pro Poor di Pulau Sumatera Periode 2013-2023

The aim of this research is to initiate pro-poor improvements on the island of Sumatra. Fixed Effects Model, also known as FEM is used to analyze panel data along with PPGI. This research involves two dependent variables: income distribution inequality and poverty, as well as two independent variables GRDP per capita and income distribution inequality. The results show that GRDP per capita has a significant negative effect on the Inequality of Income Distribution on the Island of Sumatra, GRDP per capita has a significant negative effect on Poverty on the Island of Sumatra, Inequality of Income Distribution has a significant positive effect on poverty and strong pro-poor growth on the Island of Sumatra.

Assessing Income Inequality in Rural and Urban Areas of Khyber Pakhtunkhwa: A Comparative Analysis Using Lorenz Curve and Gini Index Approaches

Income inequality remains a substantial issue for both developed and developing economies, as it has correlation with poverty and economic growth. This central theme of research study is to assess the income disparities between rural and urban areas of Khyber Pakhtunkhwa (KP), Pakistan, using the Lorenz Curve and Gini Index approaches. The major analysis encompasses a comparative assessment of income and expenditure patterns to compute the extent of inequality in the region. Data was gleaned from the Household Integrated Economic Survey (HIES), which included with a specific focus on 1,352 households in KP. The findings reveal significant income disparities in KP, with a Gini Coefficient of 0.38 through the income approach, indicating a 38% income inequality level. In contrast, the expenditure approach yielded a lower Gini Coefficient of 0.32, suggesting that expenditure data may provide a more accurate reflection of economic disparities in KP, where individuals are often hesitant to disclose actual income levels. The Lorenz Curve analysis further corroborates these findings, showing a pronounced deviation from the line of equality, particularly in urban areas. The research also underscores the interlinkage between income inequality and poverty, emphasizing that reducing income disparities can lead to poverty alleviation and enhanced economic development. The study concludes with policy recommendations aimed at addressing to policymakers who should prioritize increasing access to quality education for the lower-income population in Khyber Pakhtunkhwa to enhance their skill sets and job prospects. This study recommends that the government may introduce targeted economic policies and social safety nets, such as conditional cash transfers and subsidized healthcare, to bridge the rural-urban income gap and ensure more equitable development across the KP province.

Assessing Income Inequality in Rural and Urban Areas of Khyber Pakhtunkhwa: A Comparative Analysis Using Lorenz Curve and Gini Index Approaches

Income inequality remains a substantial issue for both developed and developing economies, as it has correlation with poverty and economic growth. This central theme of research study is to assess the income disparities between rural and urban areas of Khyber Pakhtunkhwa (KP), Pakistan, using the Lorenz Curve and Gini Index approaches. The major analysis encompasses a comparative assessment of income and expenditure patterns to compute the extent of inequality in the region. Data was gleaned from the Household Integrated Economic Survey (HIES), which included with a specific focus on 1,352 households in KP. The findings reveal significant income disparities in KP, with a Gini Coefficient of 0.38 through the income approach, indicating a 38% income inequality level. In contrast, the expenditure approach yielded a lower Gini Coefficient of 0.32, suggesting that expenditure data may provide a more accurate reflection of economic disparities in KP, where individuals are often hesitant to disclose actual income levels. The Lorenz Curve analysis further corroborates these findings, showing a pronounced deviation from the line of equality, particularly in urban areas. The research also underscores the interlinkage between income inequality and poverty, emphasizing that reducing income disparities can lead to poverty alleviation and enhanced economic development. The study concludes with policy recommendations aimed at addressing to policymakers who should prioritize increasing access to quality education for the lower-income population in Khyber Pakhtunkhwa to enhance their skill sets and job prospects. This study recommends that the government may introduce targeted economic policies and social safety nets, such as conditional cash transfers and subsidized healthcare, to bridge the rural-urban income gap and ensure more equitable development across the KP province.

The Role of Financial Development in Poverty and Income Distribution Dynamics in ASEAN Countries: A Panel Cointegration Analysis

The objective of this study is to examine the impact of financial development on income equality and poverty reduction in selected Southeast Asian countries. This study utilizes the Panel Autoregressive Distributed Lag (Panel ARDL) method. In addition, the researcher also used the statistical descriptive method, the unit root test method to measure the stationarity of variables, and the cointegration panel method to measure the cointegration between the dependent variable and the independent variable. The results of the study obtained from the panel analysis found that financial development can reduce income inequality in selected ASEAN countries, but there is no implication for poverty. For the short run ARDL results in each country, financial development has a positive impact on poverty for Indonesia and Singapore and can reduce the income gap for Singapore and Thailand. However, the findings for Philippines show that financial development exacerbates income inequality and poverty. Finally, the role of the government and the central bank in each ASEAN country is very important in ensuring that financial development can have a positive impact on poverty reduction and income equality for ASEAN countries.

Net worth poverty and child Well-being: Black–White differences

Net worth poverty and child Well-being: Black–White differences

Changing household structures, household employment, and poverty trends in rich countries

Changes in household structures and employment patterns alter the balance between households with an above- versus a below-average poverty risk while also affecting relative income poverty thresholds. Examining 11 countries for which suitable microdata is available from LIS back to the mid-1980s shows that patterns of change in household composition and employment exhibited some common features but also very substantial variation. The share of single adult households rose in most countries, couples with no or only one person in paid work fell in most, while couple households with two earners increased in a majority but not in Denmark, Norway and the USA and only modestly in Hungary and the UK. A counterfactual exercise assessed the impact of these changes in composition on relative income poverty rates by reweighting the 2019 samples to impose the composition structure observed in 1986. In the absence of these composition changes the relative poverty rate in 2019 would have been a good deal higher in Germany, Greece, and Italy, and especially in Israel and Spain. Composition changes had only a modest impact in the UK and made very little difference in Denmark, Hungary, and the USA, while working to increase the relative poverty rate in Czechia and Norway. This reflected the varying scale and nature of the composition changes seen across these countries. Their impact included driving up the relative poverty threshold (except in the USA), and if this effect is discounted the composition shift over the period would have had a greater poverty reduction impact in most countries, especially in Israel, Italy and most powerfully in Spain.

Effect of the Duty‐Free and Quota‐Free Market Access Schemes for Least Developed Countries on Income Inequality and Poverty

ABSTRACTThis paper has examined whether the Duty‐Free and Quota‐Free (DFQF) market access preference schemes provided by Members of the World Trade Organization (WTO) to Least developed countries (LDCs) have been instrumental in reducing income inequality and poverty in these countries. The analysis has used the entropy balancing method over an unbalanced panel dataset of 36 LDCs (treatment group) and 19 countries in the control group, with data spanning the period 1997–2018. The feasible generalized least squares, the within fixed effects and the Seemingly Unrelated Regression estimators have been employed to address empirically the question. The analysis has established that the DFQF schemes have genuinely been instrumental in reducing income inequality and poverty in LDCs, including to a greater extent in non‐African LDCs than in African LDCs. These findings confirm the importance of the DFQF schemes for LDCs.

The Simultaneous Decision-Making Process Regarding Schooling and Child Labour in Urban Households of the Zhob and Sherani Districts in Balochistan, Pakistan

This research examines the simultaneous decision-making processes regarding education and child labour within urban households in the districts of Zhob and Sherani in Baluchistan. A questionnaire was employed to collect primary data to achieve the study's objectives. The analysis was conducted using the Sequential Probit Model. The specific aims of this study include investigating the supply-side factors influencing child labour in urban settings, particularly the relationship between parental decisions (to enrol their children in "school only," "a combination of school and work," "work only," or "neither school nor work") and four categories of socio-economic variables: child characteristics (including birth order, gender, age, and education of the child), head of household characteristics (such as gender, age, education, employment status, and income of the head of the household), parental characteristics (including the education, income, and employment status of both the father and mother), and household characteristics (comprising asset ownership, per capita household expenditure, family size, and the composition of the household, specifically the number of children under five years and those aged five to fifteen). The urban child population stands at 11.7 million, representing 28 % of the total child population, with urban child labour accounting for one-eighth of rural child labour. The findings indicate that child labour in these two districts is primarily driven by low income levels and poverty. Various factors significantly influence households' decisions regarding the allocation of children's time. A key finding of the study indicates that parents tend to favour their sons' education, highlighting the presence of gender bias within the educational system. If the effect of diminishing resources per child prevails, younger siblings (those of higher birth order) are likely to receive less educational support compared to their older siblings. Consequently, older children are more inclined to engage in work-only or school-only activities, while younger children are more often involved in school-only or no school-related activities. Children from female-headed households tend to combine both schooling and work. The education and employment status of the household head and parents adversely affect child labour, whereas they positively influence child education. Additionally, the size of the household shows a positive correlation with labour involvement and a negative correlation with educational attainment for children. The presence of literate adults in the home correlates positively with school-only activities and negatively with work-only and no school-no-work activities. However, the current study indicates that a male head of household has a favourable impact on child education. Women's participation in economic activities is limited due to various socio-cultural factors, resulting in lower income levels for females, which in turn diminishes the likelihood of children from female-headed households receiving adequate educational opportunities.

THE ECONOMICS OF UNIVERSAL BASIC INCOME

This paper delves into the economic implications and feasibility of Universal Basic Income (UBI), concentrating on the considerable tax burden necessary to fund a UBI system on a national scale. With UBI increasingly seen as a potential solution to modern economic challenges, such as income inequality, poverty, and automation-driven job displacement, this analysis underscores the significant fiscal demands of implementing UBI. Through a comprehensive literature review of global UBI trials and an analysis of economic models and simulations, the paper explores UBI’s impact on labor markets, poverty alleviation, and income redistribution. Notable UBI experiments in Finland, Kenya, and Stockton have demonstrated UBI’s capacity to enhance well-being and provide financial security. However, these trials also reveal critical concerns about labor market participation and, more pressingly, the heavy fiscal burden a UBI system would impose. The fiscal models reviewed in this study indicate that UBI, while promising in enhancing social welfare, would require substantial tax increases to support it. The results emphasize that funding UBI would place a considerable strain on public resources, demanding either heightened income or consumption taxes or innovative but untested funding sources, such as taxes on carbon emissions or automation. Each of these potential funding mechanisms has profound implications for economic equity, efficiency, and social acceptance, and their viability is highly dependent on a nation’s specific economic context and fiscal policy landscape. Furthermore, the study assesses UBI’s potential long-term effects on labor markets, finding that while UBI might support labor market flexibility by reducing economic insecurity, the level of the payment and tax structure could significantly affect employment incentives. This complex interplay of UBI payments and tax policies, which often disproportionately impact certain socioeconomic groups, underlines the need for careful fiscal planning. If structured effectively, UBI could serve as a buffer against the economic disruptions caused by automation, providing displaced workers with the resources to retrain or pursue new career paths in a shifting job market. However, the increased tax burden raises questions about long-term viability, as higher taxes could reduce disposable incomes, deter workforce participation, and, paradoxically, counter the economic dynamism UBI aims to foster. In conclusion, while Universal Basic Income holds transformative potential for reducing poverty and supporting individuals in the face of technological change, its implementation would require an unprecedented commitment of public funds. This paper argues that UBI’s long-term sustainability depends on the development of funding mechanisms that can balance equity with economic efficiency, without placing undue strain on public resources or individual taxpayers. The substantial tax burden associated with UBI implementation must be carefully managed to ensure that the societal benefits outweigh the financial costs, calling for further research into tax structures that align with economic and social goals.

The Relationship between economic Growth, Inequality of income distribution and Poverty in Egypt

The Relationship between economic Growth, Inequality of income distribution and Poverty in Egypt

Social Inequality and Methods to Overcome It In Modern Conditions

This article examines cross-country social inequality and conducts a comparative analysis of income and wealth distribution at the regional level. The study utilizes analytical data from the World Bank to assess income differentiation and wealth disparities among the poorest 50%, middle 40%, and richest 10% of the population. It highlights the significant income gaps between countries and the wealth distribution within them. Additionally, the article explores the situation in Kazakhstan, analyzing both pre- and post-pandemic data to understand how the COVID-19 pandemic has influenced income levels and poverty in the country. The findings reveal a growing disparity, with a sharp contrast in the living standards across different socioeconomic groups. The paper identifies a key gap in the existing tax system, specifically the current flat income tax rate, which exacerbates inequality. To address these challenges, the authors recommend implementing a progressive taxation system, which would ensure fairer distribution of resources. This approach would redirect tax revenues to improve the welfare of lower-income populations and enhance their living conditions. The study provides crucial implications for policymakers in Kazakhstan, urging reforms to mitigate poverty and reduce social inequality, contributing to more equitable economic development.

Poverty exposure and poverty persistence for large families in Western Europe. A dynamic perspective

AbstractThis paper investigates income poverty in 14 Western European countries from 2004 to 2019, utilizing European statistics on income, social inclusion and living conditions longitudinal data. The study employs descriptive tables and panel regression models to examine poverty exposure and accumulation of poverty events over time for families with dependent children with a focus on large families with three and four or more children. The findings reveal that in all countries the reiteration of poverty spells, net of persistence dynamics, primarily results from higher risks for large families of falling back into poverty. The analysis shows large families experience carousels of poverty reoccurrence, especially among single‐earner households. All in all, analyses suggest the necessity for integrated social policies for large families, combining timely social transfers to mitigate current spells of poverty, with mid‐term follow‐up programs in the form of preventive measures tailored to families with recent poverty experiences.

Economic Recovery Strategy: The Role of MSMEs Credit Access and Optimization of Regional Fiscal Stimulus in Islamic Economics Framework

This paper aims to analyze the determinants of economic recovery in North Sumatra using district-based panel data from 2020-2022 using the Random Effect Model. Several variables derived from the implications of fiscal and monetary policies such as MSME credit access, inflation, the effectiveness of income spending, poverty, unemployment rate, and human development index were used to analyze economic recovery as proxied by GRDP per capita. Our findings indicated that the position of MSMEs' credit and relative poverty have a significant positive effect on economic recovery in North Sumatra. Conversely, the unemployment rate and human development index have a significant negative effect on economic recovery in North Sumatra. Inflation and the effectiveness of income spending have an insignificant effect on economic recovery in North Sumatra. These findings recommend that the government and the central bank should support increased access to MSME credit in terms of regulations, the availability of bank financial institutions, and allocations. In addition, it is crucial to maintain the effectiveness and increase indirect budget allocations for social fund posts that can be integrated with Islamic Social Funds such as Zakat, Infaq, and Shadaqah to address poverty and unemployment challenges to improve the community’s quality of life and accelerate economic recovery in North Sumatra.

Distribución del ingreso, pobreza y muertes en tiempos de COVID-19. ¿Existe una mortalidad selectiva?

Objective: to evaluate whether SARS-CoV2 had asymmetric consequences among Mexico’s population; in particular, to analyze whether income distribution, poverty, or both had any effect on the distribution of lethality and mortality rates across municipalities. Methodology: given the characteristics of the data, we use a Negative Binomial Model to assess the impact of income distribution and poverty on the distribution of deaths across municipalities. We considered and took into account comorbidities and some other sociodemographic variables. Results: we find that the expected number of deaths increa-ses with income inequality while it decreases with poverty, ceteris paribus. We tested different models’ specifications, and the conclusions remained unchanged. Limitations: These conclusions should be considered as preliminary because we did not have precise information about the deceased’s surroundings. In addition, many of the poorest municipalities did not have information on either contagions nor deceases, which may add some bias to the estimates. Originality: Our study represents a contribution to the growing literature on health inequality. It provides eviden-ce on how income inequality and poverty were related to COVID-19 lethality and mortality rates in a Less Developed Economy. Conclusions: The relationship between socioeconomic fac-tors and the health conditions of the population is a very important one and needs further study. To the extent that we can identify and quantify the magnitude of this rela-tionship, we could design better health systems that would allow us to face phenomena like COVID-19.