LAC Equity Lab: Economic Growth - Growth Incidence Curve (GIC)

The Growth Incidence Curve (GIC) captures graphically the annualized growth rate of per capita income for every percentile of the income distribution between two points in time. Over the last decade, a period of solid decline in inequality, income growth of the households at the bottom of the income distribution in most countries was significantly higher than those at the top. This has represented generally pro-poor growth in the LAC region. This dashboard presents the GIC both as annualized growth or as total growth between any two years since 2000. 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.