Shared Prosperity: Concepts, Data, and Some Policy Examples

23 Pages Posted: 11 Jun 2018

See all articles by Francisco H. G. Ferreira

Francisco H. G. Ferreira

World Bank - Development Research Group (DECRG)

Emanuela Galasso

World Bank - Development Research Group (DECRG)

Mario Negre

Deutsches Institut für Entwicklungspolitik - German Development Institute (DIE/GDI); World Bank Research Group

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Abstract

"Shared prosperity" has become a common phrase in the development policy discourse. This short paper provides its most widely used operational definition – the growth rate in the average income of the poorest 40 percent of a country's population – and describes its origins. The paper discusses how this notion relates to well-established concepts and social indicators, including social welfare, poverty, inequality, and mobility, and reviews some of its design shortcomings. The paper then looks at household survey data to assess recent progress in this indicator globally. The analysis finds that during 2008–13, mean incomes for the poorest 40 percent rose in 60 of 83 countries. In 49 of them, accounting for 65 percent of the sampled population, it rose faster than overall average incomes. Finally, the paper briefly reviews a (non-exhaustive) range of 'pre-distribution' and 'redistribution' policies with a sound empirical track record of raising productivity and well-being among the poor, thus contributing to shared prosperity.

Keywords: shared prosperity, poverty, inequality

JEL Classification: D30, D63, I30

Suggested Citation

Ferreira, Francisco H. G. and Galasso, Emanuela and Negre, Mario, Shared Prosperity: Concepts, Data, and Some Policy Examples. IZA Discussion Paper No. 11571, Available at SSRN: https://ssrn.com/abstract=3193325

Francisco H. G. Ferreira (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
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Washington, DC 20433
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202-473-4382 (Phone)

Emanuela Galasso

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-473-3902 (Phone)
202-522-1153 (Fax)

Mario Negre

Deutsches Institut für Entwicklungspolitik - German Development Institute (DIE/GDI) ( email )

Tulpenfeld 4
Bonn, 53113
Germany

World Bank Research Group ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

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