Dynamics of Income Inequality andWelfare in Latvia in the Late 1990s

Fofack, Hippolyte ; Monga, Celestin

World Bank, Washington, D.C.

关键词: ABSOLUTE POVERTY;    ABSOLUTE POVERTY LINE;    AGGREGATE GROWTH;    AGGREGATE INCOME;    ASSETS INEQUALITY;   

DOI  :  10.1596/1813-9450-3336
RP-ID  :  WPS3336

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper analyzes the dynamics ofpoverty and income inequality during the recovery phase ofthe transition that characterized the Republic of Latvia inthe late 1990s. Despite a continued rise in incomeinequality, empirical evidence suggests an improvement inliving standards, owing largely to a significant surge inper capita income growth, particularly in urban areas. In acontext of rising income inequality and widening urban-ruralincome and poverty gaps, the benefits of growth were notequally distributed, and poverty persisted in a number ofregions (particularly the regions of Latgale and Vitzeme)and among some socioeconomic groups (particularly householdsderiving their main income from social benefits). Inaddition to income inequality and asset endowments, povertyappears to be highly correlated with a number of labormarket-related variables, particularly unemployment,suggesting that the labor market could be an importanttransmission channel from growth to poverty. However, thoughpositive, the association between poverty and unemploymentis non linear, especially in urban areas, where the labormarket and demand are the most important channels oftransmission through which growth and macroeconomicdevelopment affect household income and living standards.