Ideas to Action:

Independent research for global prosperity

Tag: Poverty

 

student in India

Want to Build a Better Society? Make Rich Schools Accept Poor Kids

Education policymakers care about more than just test scores. They probably care a lot about making policies that will help them get re-elected. They might care about particular people or places that have been historically disadvantaged. And perhaps they care about building a more integrated society: breaking down social barriers by putting children from different socioeconomic backgrounds in the same classrooms and positively influencing interracial or interclass attitudes and social behaviour.

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Bolivia, like many other fuel producers, subsidizes the domestic consumption of energy heavily, particularly oil and natural gas. This paper estimates the magnitude of the subsidies and offers an approximate picture of their incidence by income decile.

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Individuals do escape poverty during periods of overall rise in the poverty rate; they also transit into poverty during periods of overall decline in the poverty rate. In this paper, I explore six sweeps of household surveys of Nigeria (1980–2010) in an attempt to address these concerns. In addition, I test whether different processes are at work in determining chronic and transient poverty. 

Detail of chart showing that taxes can exacerbate poverty in the poorest countries

Chart of the Week: Taxing the Poor to Give to the Bureaucrat?

The world’s poorest people have been getting richer recently. But they remain incredibly poor. The 10 percent of the world’s population still consuming $1.90 or less a day are subsisting on a small fraction of the resources available to people at the US poverty line. So you’d hope that the governments of the countries where they live would be trying to raise their consumption levels. But the reality is more complex.

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The paper critically reviews the arguments for and against both employment guarantees and income guarantees when viewed as rights-based policy instruments for poverty reduction in a developing economy, with special reference to India. Evidence on India’s National Rural Employment Guarantee Act does not suggest that the potential for either providing work when needed or reducing current poverty is being realized, despite pro-poor targeting. Instead, work is often rationed by local leaders in poor areas, and the poverty impact is small when all the costs are considered. 

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Drawing on six sweeps of household surveys of Nigeria that together span 1980–2010 with a pooled sample size of about 97,000 households and data on Nigeria’s age-gender-specific life expectancy from the World Health Organization, this paper shows that about 72 percent to 91 percent of Nigeria’s poor are at risk of spending their entire life below the poverty line.

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