LAC Equity Lab: Economic Growth - GIC by Income Source

Even as cash transfer programs and remittances have played an important role in poverty reduction in the LAC region, the main source of income for most families is still from employment. As a result, growth in labor income has driven the region's poverty reduction.

Below, the GIC has been decomposed to show growth by income source between two points in time. This dashboard shows average per capita income growth from labor and non-labor income by decile. The income growth is also presented for two different periods of time side-by-side to allow a quick visual comparison of the two periods. The data can be visualized for the LAC region as a whole, or by country for those years in which the country has available data and are comparables.

Growth Incidence Curve (GIC): The Growth Incidence Curve is a conceptually useful tool to analyze the impact of aggregate economic growth over a wide range of the distribution (Ravallion and Chen, 2003). The GIC indicates the growth rate in income or consumption between two points in time at each percentile of the distribution.

The SEDLAC (CEDLAS and WB) harmonization is an effort to increase cross-country comparability. However, methodological changes in the underlying surveys may result in non-comparable data that the harmonization process cannot fully solve. It is important that the user know what data is and is not comparable. For more information, visit the comparability dashboard.