Pierella Paci

On the measurement of inequalities in health

This paper offers a critical appraisal of the various methods employed to date to measure inequalities in health. It suggests that only two of these--the slope index of inequality and the concentration index--are likely to present an accurate picture of socioeconomic inequalities in health. The paper also presents several empirical examples to illustrate of the dangers of using other measures such as the range, the Lorenz curve and the index of dissimilarity.

On the measurement of horizontal inequity in the delivery of health care

This paper offers a critical appraisal of the various methods used to date to investigate inequity in the delivery of health care. It concludes that none of the methods used to date is particularly well equipped to provide unbiassed estimates of the extent of inequity. It also concludes that Le Grands (1978) approach is likely to point towards inequity favouring the rich even when none exists. The paper offers an alternative approach, which builds on the approaches to date but seeks to overcome their deficiencies.

How Unequally Has Equal Pay Progressed since the 1970s? A Study of Two British Cohorts

This paper compares the gender gap in the pay of British, full-time workers from two cohorts, born in 1946 and 1958 and observed in their early thirties in 1978 and 1991 respectively. These dates are separated by 13 years of Equal Pay Legislation coupled with active labor market deregulation. Although womens human capital endowments had improved on average more than mens, there may have been little improvement in the differential treatment of the average woman in full-time employment. When the whole distribution of female earnings was considered, a general improvement in the treatment of women became apparent.

Does employment generation really matter for poverty reduction

This paper analyzes how the employment/productivity profile of growth and its sectoral pattern are correlated with poverty reduction. The authors use a sample of 104 short-run growth spells in developing countries, between 1980 and 2001. They also identify some conditions of the labor market and the economic environment that are associated with employment-intensive growth or specific sectoral growth. The results show that, in the short run, although the aggregate employment-rate intensity of growth does not matter for poverty reduction any more than the aggregate productivity intensity of growth, the sectoral pattern of employment growth and productivity growth is important. Employment-intensive growth in the secondary sector is associated with decreases in poverty, while employment-intensive growth in agriculture is correlated with poverty increases. Similarly, productivity-intensive growth in agriculture is associated with decreases in poverty. Although the study does not address causality, coincidence of these phenomena in this large sample of heterogeneous countries and periods suggests that, in the short run, the sectoral productivity and employment pattern of growth may have important implications for poverty alleviation. Therefore, policies for reducing poverty should not overlook the sectoral productivity and employment implications of different growth policies.

Economic growth, income distribution, and poverty in Poland during transition

The authors attempt to analyze the linkages between macroeconomic policies and economic growth variables, their movement over time, and their impact on poverty in the case of Poland. Poland, a middle-income country, is of particular interest because its data sources allow for a relatively detailed analysis of such developments, and the macroeconomic environment and the economic growth variables show a relatively sizable degree of variance. In addition, Poland has struggled in the past few years to reduce poverty while still experiencing positive economic growth. The authors show that in Poland, poverty-reducing growth depends heavily on the ability of the economy to generate jobs. During the early years of transition, net job growth was positive, while after the Russian crisis of 1998, productivity gains were accomplished mostly through labor shedding, henceforth, increasing poverty in Poland. In addition, the authors identify how fiscal and social protection policies affect income distribution and poverty in Poland.

Causes of inequality in health : who are you? where do you live? or who your parents were?

Data from the British National Child Development Study show that, among 33-year-olds, ill health (as measured by cardinalized responses to a question on self-assessed health) is concentrated among the worse off. The authors seek to decompose the inequalities in health status into their socioeconomic causes. In this decomposition, inequalities in health status depend on inequalities in each of the underlying determinants of health and on the elasticities of health status with respect to each of these determinants. The authors estimate these elasticities using regression models that allow for unobserved heterogeneity at the community level. They find that inequalities in unobserved community-level influences account for only 6 percent of health inequality, and inequalities in parental education and social class for only 4 percent. Inequalities in income and housing tenure account for most health inequality, though inequalities in educational attainment and in math scores at age seven also play a part.

Internal labor mobility in Central Europe and the Baltic region

Drawing from a variety of data sources and utilizing a common empirical framework and estimation strategy, this study identifies patterns and statistical profiles of geographical mobility. It finds internal migration to be generally low and highly concentrated among better-educated, young, and single workers. This suggests that migration is more likely to reinforce existing inequalities than to act as an equalizing phenomenon. By way of contrast, commuting flows have grown over time and are more responsive to regional economic differentials. The findings suggest the need for appropriate and country-tailored policy measures designed to increase the responsiveness of labor flows to market conditions.

Internal Labour Mobility in Central Europe and the Baltic Region: Evidence from Labour Force Surveys

There are large regional disparities in labour market indicators in countries in Central Europe and the Baltic region. Such disparities appear to be persistent over time indicating, in part, a lack of flexibility in the prevailing adjustment mechanisms. Internal labour mobility is often seen as a potentially important instrument to reducing adjustment costs when other mechanisms fail. Drawing from 2004 LFS data and utilizing a common empirical framework and estimation strategy, this paper identifies patterns and statistical profiles of geographical mobility. It finds internal migration to be generally low and highly concentrated amongst better-educated, young and single workers. This suggests that migration is more likely to reinforce existing inequalities rather than act as an equalizing phenomenon. By way of contrast, commuting flows have grown over time and are more responsive to regional economic differentials. The findings suggest the need for appropriate and country-tailored policy measures designed to increase the responsiveness of labour flows to market conditions.

Making work pay in Nicaragua : employment, growth, and poverty reduction

The objective of this report is to provide some policy guidelines for the fight against poverty. In particular, it hopes to be able to identify the growing sectors, as well as the constraints faced by the poor in benefiting from this growth. The report is part of a series of studies conducted within the Poverty Reduction Group (PRMPR) to foster understanding of the role of employment earnings and labor markets in shared growth. In addition, it is intended to function as a background document for the World Banks Nicaragua Poverty Assessment 2007. The degree to which growth is able to translate into poverty reduction depends on how its benefits are distributed among different segments of society. There is little doubt that growth measured by changes in average income contributes significantly to poverty reduction. However, it is also clear that countries differ in the degree to which income growth spells have translated into poverty reduction. Although differences in the responsiveness of poverty to income growth account for a small fraction of the overall differences in poverty changes across countries, from the point of view of an individual country, these differences may have significant implications for poverty reduction, especially in the short term.

Working through the crisis : jobs and policies in developing countries during the great recession

This document seeks to examine how the Great Recession affected labor markets in developing countries and how governments responded. The recession that began with the collapse of housing markets in the United States and Europe in late 2008 hit the labor markets particularly hard. Employment outcomes worsened sharply as economies shrank. Advanced economies and countries in Central and Eastern Europe suffered the most, with a sharp fall in the Gross Domestic Product (GDP). In Latin America and the Caribbean, output fell significantly. And although the economies of Asia, Africa, and the Middle East did not contract, their trend growth rates of GDP decelerated significantly. Globally, it is estimated that about 30 million jobs were lost over a period of two years. Where employment did not fall, accommodating the contraction of aggregate demand entailed a sharp drop in total earnings. This document is divided into seven chapters including the overview chapter, and discusses how the crisis affected output across countries, how labor markets adjusted, which workers were more likely to be affected, and which types of policies were implemented. In doing so, the chapters bring together a unique compilation of data and analysis from very different sources, including an inventory of policies implemented during the crisis among countries in Latin America, Eastern Europe, Asia, and Africa.