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The objective of the paper is to update the small area estimates of poverty and inequality for rural Vietnam. The new estimates of province and district level poverty for the year 2006, when combined with estimates available for 1999, allow for examination of how poverty has changed in rural Vietnam over the past seven years. The analysis finds that all provinces across the country experienced a noticeable reduction in rural poverty during the period 1999-2006. Some of the largest reductions in poverty are observed for provinces with poverty rates close to the national average. The poorest provinces have also experienced reductions in poverty, albeit at a more modest pace. Provinces and districts with lower levels of inequality in 2006 have seen above average poverty reductions. The authors consider both expenditure and income based measures of poverty and inequality, and find the results to be very similar.

Achieving Shared Growth --- Employment status --- Estimates of poverty --- Household survey --- Income --- Inequality --- Macroeconomics and Economic Growth --- Poor --- Poverty estimates --- Poverty levels --- Poverty mapping --- Poverty maps --- Poverty measurement --- Poverty rates --- Poverty Reduction --- Poverty reduction programs --- Regional Economic Development --- Rural --- Rural areas --- Rural households --- Rural livelihoods --- Rural poverty --- Rural Poverty Reduction --- Services & Transfers to Poor --- War

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Latin America is together with Sub-Saharan Africa the most unequal region of the world. This paper documents recent inequality trends in the Latin American region, going beyond traditional measures of income inequality. The paper also reviews some of the explanations that have been put forward to understand the current situation, and discusses why reducing income inequality should be an important policy priority. In particular, the authors discuss channels through which inequality can affect growth and output volatility. On the whole, the analysis suggests a two-pronged approach to reduce inequality in the region that combines policies aimed at improving the distribution of assets (especially education) with elements aimed at improving the capacity of the state to redistribute income through taxes and transfers.

Average income --- Economic Conditions and Volatility --- Economic Theory and Research --- Gini coefficient --- Impact of inequality --- Income --- Income inequality --- Inequality --- Inequality trends --- Macroeconomics and Economic Growth --- Output volatility --- Policy Research --- Poverty levels --- Poverty Reduction --- Pro-Poor Growth --- Rural Development --- Rural Poverty Reduction

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Bourguignon, Ferreira, and Leite develop a microeconometric method to account for differences across distributions of household income. Going beyond the determination of earnings in labor markets, they also estimate statistical models for occupational choice and for conditional distributions of education, fertility, and nonlabor incomes. The authors import combinations of estimated parameters from these models to simulate counterfactual income distributions. This allows them to decompose differences between functionals of two income distributions (such as inequality or poverty measures) into shares because of differences in the structure of labor market returns (price effects), differences in the occupational structure, and differences in the underlying distribution of assets (endowment effects). The authors apply the method to the differences between the Brazilian income distribution and those of Mexico and the United States, and find that most of Brazil's excess income inequality is due to underlying inequalities in the distribution of two key endowments: access to education and to sources of nonlabor income, mainly pensions. This paper is a product of the Research Advisory Staff. The authors may be contacted at fbourguignon@worldbank.org, fferreira@econ.puc-rio.br or phil@econ.puc-rio.br.

Absolute Poverty --- Counterfactual --- Economic Theory and Research --- Finance and Financial Sector Development --- Financial Literacy --- Health, Nutrition and Population --- Household Consumption --- Household Income --- Household Per Capita Income --- Household Survey --- Household Surveys --- Income --- Income Distribution --- Income Inequality --- Inequality --- Labor Policies --- Macroeconomics and Economic Growth --- Population Policies --- Poverty --- Poverty Impact Evaluation --- Poverty Incidence --- Poverty Levels --- Poverty Line --- Poverty Measures --- Poverty Rates --- Poverty Reduction --- Rural --- Rural Areas --- Rural Development --- Rural Income --- Rural Poverty Reduction --- Services and Transfers to Poor --- Social Protections and Labor --- Transfers

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Child health services --- Children --- Poor children --- Poor --- Child Health Services --- Poverty --- 614 --- Child Services, Health --- Health Services, Child --- Health Services, Infant --- Infant Services, Health --- Services, Child Health --- Services, Infant Health --- Infant Health Services --- Child Health Service --- Health Service, Child --- Health Service, Infant --- Infant Health Service --- Service, Child Health --- Service, Infant Health --- Child Health --- Children of the poor --- Economically disadvantaged children --- Child health --- Health of children --- Puericulture --- Pediatrics --- Absolute Poverty --- Extreme Poverty --- Indigents --- Low Income Population --- Indigency --- Low-Income Population --- Indigent --- Low Income Populations --- Low-Income Populations --- Population, Low Income --- Population, Low-Income --- Populations, Low Income --- Populations, Low-Income --- Poverty, Absolute --- Poverty, Extreme --- Working Poor --- Health and hygiene --- Medical care --- Openbare gezondheidszorg--(zie ook {351.84}) --- Economic conditions --- Care and hygiene --- Health --- Hygiene --- United States. --- Paediatrics --- Federal Poverty Threshold --- Poverty Threshold, Federal --- Poverty Thresholds, Federal --- Thresholds, Federal Poverty --- Federal Poverty Level --- Federal Poverty Levels --- Level, Federal Poverty --- Poverty Level, Federal

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This paper uses the night lights (satellite imagery from outer space) approach to estimate growth in and levels of subnational 2013 gross domestic product for 47 counties in Kenya and 30 districts in Rwanda. Estimating subnational gross domestic product is consequential for three reasons. First, there is strong policy interest in how growth can occur in different parts of countries, so that communities can share in national prosperity and not get left behind. Second, subnational entities want to understand how they stack up against their neighbors and competitors, and how much they contribute to national gross domestic product. Third, such information could help private investors to assess where to undertake investments. Using night lights has the advantage of seeing a new and more accurate estimation of informal activity, and being independent of official data. However, the approach may underestimate economic activity in sectors that are largely unlit notably agriculture. For Kenya, the results of the analysis affirm that Nairobi County is the largest contributor to national gross domestic product. However, at 13 percent, this contribution is lower than commonly thought. For Rwanda, the three districts of Kigali account for 40 percent of national gross domestic product, underscoring the lower scale of economic activity in the rest of the country. To get a composite picture of subnational economic activity, especially in the context of rapidly improving official statistics in Kenya and Rwanda, it is important to estimate subnational gross domestic product using standard approaches (production, expenditure, income).

Agricultural output --- Agricultural performance --- Agricultural sector --- Agriculture --- Annual growth --- Annual growth rate --- Cities --- City --- Coefficients --- Consumption --- Criteria --- Development indicators --- Development policy --- Diseconomies of scale --- Distribution of income --- District --- District administrations --- District level --- District-level --- Economic activity --- Economic decline --- Economic downturns --- Economic growth --- Economic theory & research --- Economics --- Elasticity --- Empirical model --- Estimation method --- Financial crisis --- Fiscal management --- Fixed effects --- GDP --- GDP per capita --- Gross domestic product --- Growth --- Growth rate --- Growth rates --- Household surveys --- Incentives --- Incidence of poverty --- Indicators --- Informal economy --- Inputs --- Long-term growth --- Macroeconomics --- Macroeconomics and economic growth --- National poverty line --- Policy research --- Poverty --- Poverty impact evaluation --- Poverty levels --- Poverty line --- Poverty reduction --- Pro-poor growth --- Provinces --- Real GDP --- Resource allocation --- Revenue --- Revenue allocation --- Revenue sharing --- Revenue sharing formula --- Revenue-raising capacity --- Subnational entities --- Subnational governments --- Subnational unit --- Surveys --- Tax --- Underestimates --- Urban areas --- Wealth