Opening the Convergence Black Box: Measurement Problems and Demographic Aspects

Ravi Kanbur and Anthony J. Venables

in Spatial Inequality and Development

Published in print February 2005 | ISBN: 9780199278633
Published online April 2005 | e-ISBN: 9780191602191 | DOI:

Series: WIDER Studies in Development Economics

 Opening the Convergence Black Box: Measurement Problems and Demographic Aspects

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The authors address the issues involved with the use of microeconomic data—household surveys—to compare the patterns of income growth among different regions instead of the commonly used aggregate data. In particular, they investigate the issues of aggregation of household income to regional income and the problem of demography. As returns to experience generally differ across regions, differences in the patterns of income growth across regions in the same time interval will differ across age groups, which means that convergence or divergence of aggregate income among regions will depend on the age structure of their population. The authors apply these concepts to the case of the states of Brazil, for which they have repeated cross sections from a rich household survey. They find that patterns of income growth vary a great deal across birth cohorts, depending on the economic returns to experience.

Keywords: birth cohorts; Brazil; micro data; regional convergence; regional growth

Chapter.  6151 words.  Illustrated.

Subjects: Economic Development and Growth

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