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Growth, inequality, and social welfare : cross-country evidence
 
Author:Dollar, David; Kleineberg, Tatjana; Kraay, Aart; Collection Title:Policy Research working paper ; no. WPS 6842Paper is funded by the Knowledge for Change Program (KCP)
Country:World; Date Stored:2014/04/24
Document Date:2014/04/01Document Type:Policy Research Working Paper
SubTopics:Achieving Shared Growth; Economic Theory & Research; Inequality; Economic Conditions and Volatility; Equity and DevelopmentLanguage:English
Major Sector:Public Administration, Law, and JusticeRel. Proj ID:1W-Reforms And Growth- -- P080834;
Region:The World RegionReport Number:WPS6842
Sub Sectors:Central government administrationTF No/Name:TF012576-PHRD Staff Grant Support for Tomoko Wada; TF098053-KCPII - Industrial Policy in an Uncertain Environment; TF099120-KCP; TF099853-PHRD STAFF GRANT SUPPORT FOR TOMOKO WADA
Volume No:1 of 1  

Summary: Social welfare functions that assign weights to individuals based on their income levels can be used to document the relative importance of growth and inequality changes for changes in social welfare. In a large panel of industrial and developing countries over the past 40 years, most of the cross-country and over-time variation in changes in social welfare is due to changes in average incomes. In contrast, the changes in inequality observed during this period are on average much smaller than changes in average incomes, are uncorrelated with changes in average incomes, and have contributed relatively little to changes in social welfare.

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