Growth and inequality trade-offs to eradicate absolute poverty.

ABSTRACT: The relationship between growth, inequality and poverty remains elusive, despite considerable scholarship. To what extent can governments rely on growth to eradicate poverty without reducing inequality? We derive a closed-form relationship between a minimum income threshold, changes in the Gini index of income inequality and average national income required to meet this target, independent of the form of income distribution. We develop a generalized form of redistribution and validate it against historical changes in inequality. We use this formulation to illustrate feasible growth-redistribution strategies to raise entire populations above the International Poverty Line ($1.90/day) by 2030, the Sustainable Development Goal 1, in two selective countries: India and Rwanda. We show that meet

SUBMITTER: Min J 

PROVIDER: S-EPMC10641217 | biostudies-literature | 2023 Nov

REPOSITORIES: biostudies-literature