Athanassios Papadaskalopoulos, George M. Korres, George Polychronopoulos
Review on theory and evidence of poverty, growth and inequality
Journal of European Economy, Volume 2, Issue 1, March 2003, pp. 85-114
|JEL: D31, O10, O40||Full text (PDF)|
How is inequality generated and how it reproduces over time? This has been a major concern of sociology scientists for more than a century. The changes in aggregate or average income is a good measure for economic growth but is far from being the only one. There is an increasing «inequality» throughout the world. Over the period 1960–2000, averaged per-capita income in the richest 5% of the world’s nations was about twenty-nine times the corresponding figure for the poorest 5%. Poverty also affects other forms of economic and social functioning. The measurement of poverty is based on the notion of poverty line which is constructed from monetary estimates of minimum needs. Poverty is highly correlated with the lack of education, and there is close connection between nutrition and poverty. The measurement of inequality is highly controversial. It is a field in which social judgments are highly diverse and translate themselves into differences in social judgments, such as the measure of inequality or the choice of equivalence scale. Social and economic indicators demonstrate the data for the population-based measures of economic, social and health outcomes and answer the question about inequality and wellbeing. This article is an attempt to examine the relationship between inequality and the process of socio-economic development, to overview the theories of income inequality, to measure the income distribution, and moreover, to investigate the role and the effects on socio-economic growth.
Absolute poverty, added value, average income, basic needs, Colder’s hypothesis, consumer demand, convergence, earnings, education, endogenesis theory, equality, final poverty line, Gini coefficient, human development, human poverty index, hygiene, income, income distribution, income measurement, inequality, knowledge, level of life, life expectancy, Lorenz curve, medical service, modern technologies, nutrition, nutrition poverty, poverty increase, poverty line, relative poverty, savings, Sollou model, transfers, U-curve, wealth.