Poverty and Income Distribution in a High Growth Economy : The Case of Chile 1987-98, Volume 2. Background Papers

The study analyzes Chile's strong economic growth, and well directed social programs, a combination that reduced the poverty rate in half, during a period of just eleven years. The previously noted trends in falling poverty, in terms of incidence, depth, and severity, continued into 1998, and the analysis shows there was unambiguously less poverty between 1994, and 1998, observed at all levels of income. Clearly, income poverty is related to, and impacted by a number of important factors, such as level of education, larger families, or families headed by women, and employment opportunities. Evidence shows Chile achieved considerable improvements in key social indicators, i.e., infant mortality, life expectancy, and educational coverage, for the combination of the three social sector deficit measures of poverty - education, health, and housing - with the income poverty measure, reveals that fifty one percent of all households have neither social sector, nor income deficits. Nonetheless, income inequality remained high by international standards, and appeared to have worsened between 1994-98. Thus, adjusting income inequality for social spending became an important estimate, particularly if social programs were growing. The methodology estimated imputed income transfers from subsidies in the three sectors, and the analysis confirmed that adjustments for in-kind income transfers, substantially reduce the Gini coefficient on income inequality. Results indicate that Chile's success in reducing income disparities through social spending is linked to its system for targeting social programs.

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Bibliographic Details
Main Author: World Bank
Language:English
en_US
Published: Washington, DC 2001-08-30
Subjects:AGGREGATE INCOME, AVERAGE INCOME, AVERAGE INCOME LEVEL, AVERAGE INCOMES, CENSORED DISTRIBUTION, CONSUMER PRICE INDEX, DATA AVAILABILITY, DATA SET, DATA SETS, DESCRIPTIVE STATISTICS, DIMINISHING RETURNS, DISPERSION OF THE DISTRIBUTION, DISTRIBUTION FUNCTIONS, DISTRIBUTIONAL IMPACT, ECONOMIC CONDITIONS, ECONOMIC GROWTH, EDUCATIONAL ATTAINMENT, ELASTICITY, GINI COEFFICIENT, HIGH GROWTH, HOUSEHOLD INCOME, HOUSEHOLD INCOMES, HOUSEHOLD SIZE, HOUSEHOLD SURVEY MICRO-DATA, HOUSEHOLD SURVEYS, INCOME, INCOME CONCEPTS, INCOME DATA, INCOME DISTRIBUTION, INCOME INEQUALITY, INCOME SHARE, INCOME TRANSFER, INCOMES, INCOMES AT THE TOP OF THE DISTRIBUTION, INCOMES IN THE MIDDLE OF THE DISTRIBUTION, INCREASING INEQUALITY, INDIVIDUAL INCOMES, INEQUALITY ESTIMATES, INEQUALITY MEASURE, INEQUALITY MEASURES, INSURANCE, LABOR DEMAND, LABOR MARKET, LIVING STANDARDS, MEAN INCOME, MEAN INCOMES, MEAN LOG DEVIATION, MEASURED INEQUALITY, MEDIAN INCOME, MONETARY TRANSFERS, NOMINAL INCOMES, PER CAPITA INCOME, POLICY ISSUES, POOR, POOR HOUSEHOLDS, POSITIVE IMPACT, POVERTY ESTIMATES, POVERTY GAP, POVERTY LINE, POVERTY LINES, POVERTY MEASURES, POVERTY REDUCTION, PUBLIC GOODS, PURCHASING POWER, RAPID GROWTH, REAL INCOME, REGIONAL VARIATIONS, RISING INEQUALITY, SOCIAL GROUPS, SOCIAL PROGRAMS, SOCIAL SERVICES, STATISTICAL TECHNIQUES, TARGETING, UNEMPLOYMENT, WELFARE INDICATORS POVERTY INCIDENCE, GROWTH PATTERNS, POVERTY DEPTH, POVERTY SEVERITY, LEVEL OF EDUCATION, FAMILY SIZE, WOMEN HEADS OF HOUSEHOLDS, EMPLOYMENT OPPORTUNITIES, SOCIAL INDICATORS, EDUCATION SECTOR, HEALTH CARE DELIVERY, HOUSING, INCOME ESTIMATES, INCOME INEQUALITIES, INCOME TRANSFERS, PUBLIC SPENDING, DEFICITS, SUBSIDIES, TARGETED ASSISTANCE, SOCIAL SUPPORT, INDIGENOUS POPULATION,
Online Access:http://documents.worldbank.org/curated/en/2001/08/1614765/chile-poverty-income-distribution-high-growth-economy-case-chile-1987-98-vol-2-2-background-papers
http://hdl.handle.net/10986/15469
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