While it is improbable that households with different incomes are equally likely to participate in sample surveys, the lack of data for nonrespondents has hindered efforts to correct for the bias in measures of poverty and inequality. The authors demonstrate how the latent income effect on...

The author identifies the determinants of wages and productivity in Mexico over time using national representative linked employer-employee databases from the manufacturing sector. She shows that both employers and employees are benefiting from investments in education, training, work...

Unlike most development initiatives, conditional cash transfer programs recently introduced in the Latin America and the Caribbean region have been subject to rigorous evaluations of their effectiveness. These programs provide money to poor families, conditional on certain behavior, usually...

The authors depart from John Roemer's theory of equality of opportunities. They seek to determine what part of observed outcome inequality may be attributed to differences in observed"circumstances,"including family background, and what part is due to"personal efforts."The authors use a...

The author uses new data from 50 developing countries and 101 intervals to examine the impact of economic growth on poverty and inequality. He finds that growth represents an important means for reducing poverty in the developing world. When economic growth is measured by survey mean income...

The literature argues that the presence of multiple veto players (government decisionmakers) with polarized interests increases the credibility of sovereign commitments, but reduces the ability of governments to adjust policies in the event of exogenous shocks that jeopardize their ability to...

The author provides theoretical and empirical evidence of a negative association between income inequality and real exchange rates. First, he builds a theoretical model showing the transmission mechanism from inequality to real exchange rates. Second, using cross-country data, he demonstrates...