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Fobli< t•tll/tlel lf,•:Ht-tL d ki.'~;Kirl.t( h-}-V(tna: O:.,;l;nltr\1-"'i,.mtta''" Pta.!!(l O.Ur:h~hC~t.'l! Jn:.C!"';t lhrcag" tbe fa!tndt.! Farn1h: S~Jtem Heal1h.r·•d'Rurili 0-t~r>-rr:o.r-nt 111 ~cpal .\ Uener.a; .\t;:d,t1J u~rr .,.n . Re.wu:r..rtn• lcdt.Ot:llil fi::Hti•·S...a~t i:r:tr.rr+~tt' Ut\c:'q:me'n S!!.t:!~es il~ lh~tl :ltl Otw .~:;tm!l ;;tnJ tAr,JWth Tutt-.oc,k "'".Jl~at-.:ll~ tnif ~.1">:41li'!l41 Q,;:;,,•n. Sub,hrutn:moflabora.ndE.qu4pmc:ntlrCJVU 511'.1!Ujt~n T!cbnotcn· C~:m•trucuon Pn,tnJ e{ lfldlatoou• Enc:rn Ruout:n H•Jh""ttY Octllfl l)!uZh ~Phut lll! lntenH;!,ona! S1o~d't of the }htc.ntt;m o! L1tcr~c."" .Ec:cnam:c.Rcltnfil•li.wa..-• 4116 ~umru:) · P!uu 1' Abstracts of Current Studies 1982 The World Bank Research Program The World Bank \Vashington, D.C. 20433, U.S.A. © 1983 by the International Bank for Reconstruction and Development I The World Bank 1818 H Street~ N.W., Washington, D.C. 20433, U.S.A. A11 rights reserved. First printing: April 1983 Manufactured in the United States of America ISSN 0253-9535 ISBN 0-8213-0185-3 Foreword The World Bank's research program is now entering its thir- teenth year. As can be seen by a perusal of these Abstracts, the program covers a wide range of development issues in about sixty countries. The program is an evolving one, changing in response to the varying needs and priorities of the Bank and its member countries and as a consequence of the accumulation of research results and experience from earlier studies. Recently, new research projects have been started to measure and evaluate the polic;y responses of developing countries to external shocks and to focus on some of the developmental and policy issues associated with high energy prices. Associated with the increased maturity of the research program, an incr('asing number of projects are designed to facilitat~ pilot applications of the results of earlier Bank research to the analysis of policy issues encountered in the work of the Bank or within member countrie.s. These Abstracts are designed for a broad audience to provide information on research projects in progress at the Bank and to facilitate an effective exchange of information among those con- cerned to study, and thereby to advance, the process of develop- ment. Suggestions as to how Abstracts could be improved will be welcome. Anne 0. Krueger Vice President Economics and Research Staff 3 The Abstracts were compiled and edited by Sharon Blinco in the Office of the Vice President, Economics and Research. Margaret de Tchihatchef of the Publications Department was res- ponsible for the production of the book. Contents Foreword 3 List of Abstracts of Current Studies, by Functional Category 7 Introduction 15 Abstracts of Current Studies 1. Development Policy and Planning 19 1-A. Income Distribution 19 1-B. Planning, Growth, and Country Economic Analysis 29 2. International Trade and Finance 71 3. Agriculture and Rural Development 88 4. Industry 121 5. Transportation, Water, and Telecommunications 154 6. Energy 168 7. Urbanization and Regional Development 181 8. Population and Human Resources 203 8-A. Education 203 8-B. Labor and Employment 222 8-C. Population, Health, and Nutrition 231 Indexes Country/Regional Index 255 Numerical Index 258 5 List of Abstracts of Current Studies, by Fulactional Category 1. Development Policy and Planning 1-A. Income Distribution 620-47 The Living Standards Measurement Study 19 670-83 Evaluation of Latin American Data on Income Distribution 22 671-08 Evaluation of Asian Data on Income Distribution 23 672-21 Studies on Brazilian Distribution and Growth 24 672-57 Income Formation and Expenditures of Poor Urban Households 27 1-B. Planning, Growth, and Country Econorr•ic Analysis 670-68} _ International Comparison Project 29 671 91 671-27 Social Accounts and Development Models 32 671-58 A General Algebraic Modeling System (CAMS) 33 671-66 Research Support for the World Development Report 35 671-72 Growth, Poverty, and Basic Needs: Development Policies in Sri Lanka, Kerala, and Punjab 38 671-87 Real Product and \Vorld Income Distribution .)9 672-04 Research Dissemination: A Computable General Equilibrium Model of Turkey 41 672-16 Reduced Information Methods of International Real Inco me Comparisons 43 8 Abstracts, by Functional Category 672-25A Development of a SAM Basis for Planning and Modeling in Egypt 44 672-26A Multisector and Macroeconomic Models of Structurcll Adjustment in Yugoslavia 46 672-27 Redistributive Aspects of Social Programs in Costa Rica 47 672-38A Development of Social Accounts and Models for the Cyprus Five-Year Plan 48 672-47 The Development and Extension of Macromodeling in Relation to Thailand 49 672-49 Developmet:~t Paths for Oil Exporters: A Long-Run Macroeconomic Analysis 50 672-61 Taxation and Pricing Policies in Rural and Urban Korea 53 672-65 Economic Consequences of the Coffee Boom in East Africa: A Comparative Analysis of Kenya and Tanzania 55 672-66 Econometric Modeling of Investment and Saving in Korea 57 672-68 Collaborative Research with China (Phase I) 58 672-71 Tax and Contractual Arrangements for Exploiting Natural Resources 59 672-73 Evaluation and Estimation of National Accounts Statistics of Centrally Planned Economies 61 672-75 Cross-Country Analysis of Growth in Sub-Saharan Africa 62 672-77 Medium- and Long-Run Issues in Economies with an Exhaustible Resource-Based Traded Sector 65 672-79A Relative Prices in Hungary, Poland, and Romania 67 672-87 A A Computable General Equilibrium Model for the Ivory Coast 68 672-92 Book on Modern Tax Theory for Developing Countries 69 2. International Trade and Finance 671-09 Natural Resources and Planning: Issues in Trade and Investment 71 Abstracts, by Functional Category 9 671-28 Linkage of Commodity and Country Models 72 671-35 Export Incentives in Developing Countries 73 Penetration of Industrialized Country Markets 671-67} by Imports of Manufactures from 671-82 Developing Countries 75 671-68 Key Institutions and Expansion of Manufactured Exports 77 672-32 The Direction of Developing Countries' Trade: Patterns, Trends, and Implications 79 672-33 Agricultural Trade Patterns in an Expanding European Community and Their Effects on Tunisia 81 672-41 Changes in Comparative Advantage in Manufactured Goods 84 672-85 Liberalization with Stabilization in the Southern Cone 85 3. Agriculture and Rural Development 671-17 Analytics of Change in Rural Communities 88 671-45 Programming and Designing Investment: Indus Basin 9D 671-57 Distribution of Income through the Extended Family System 91 67!-80 Evaluation of Food Distribution Schemes 93 671-89 India: Impact of Agricultural Development on Employment and Poverty (Phase if) 95 672-02 The Construction of Econometric Models for the Supply of Perennials: A Case Study of Natural Rubber and Tea in Sri Lanka 97 672-11 A Framework for Agriculture Sector Analysis 100 672-14 Agricuitural Innovations in India: A District and Farm Level Analysis of Fertilizer Use and HYV Adoption 102 672-17 Improved Technology for Animal-Powered Agriculture 103 672-18 Food Policy Analysis for Practitioners 104 10 Abstracts, by Functional Category 672-24A Agriculture Sector Modeling Conference: A Research Application 104 672-29 The Impact of Agricultural Extension: A Case Study of the Training and Visit Method in Haryana, India 105 672-30 Production and Distributional Implications of Dairy Development Projects: Effects on Income, Consumption, and Nutrition of the Poor 107 672-39 Market and Agricultural Policy Determinants of Rural Incomes 110 672-50A Canal Command Model for Project Design and System Operation iP.. the Indus Basin Ill 672-62 Market Interventions in Agriculture: A Study of Rubber in Thailand 112 672-67 Conditions for Sustained Farm Mechanization 113 672-78A Agricultural Pricing Policies in Turkey 114 672~80A Manual of Agriculture Sector Programming Models 116 672-82 Agricultural Household 1\tlodels: Extensions and Policy Imp1ications 118 672-84 Direct and Indirect Effects of Irrigation: Matar Taluka, Gujarat, India 119 4. Industry 670-23 Scope for Capital-Labor Substitution in the .f\1echanical Engineering Industry 121 670-24 Programming in the Manufacturing Sector 123 670-87 Industrial Policies and Economic Integration in Western Africa 126 671-32 A Comparative Study of the Sources of Industrial Growth and Structural Change 128 671-59 Small-Scale Enterprise Development 130 671-71 Managerial Structures and Practices: Public Manufacturing Enterprises 133 671-77 Appropriate Industrial Technology (Phase J.l) 135 671-79 The Sources of Growth and Productivity Change: A Comparative Analysis 137 Abstracts, by Functional Category 11 671-85 The Industrial Incentive System in Morocco 139 671-92 Industrial Statistics 140 672-12 A Statistical Analysis of the Efficiency of the Indonesian Manufacturing Sector 142 672-22A Programming in the Manufacturing Sector: A CAMS Application 143 672-34 Analysis of Small-Scale Enterp!ise Lending in Kenya 144 672-36A Protection and Incentive Systems in the Turkish Manufacturing Sector 146 672-43A The World Aluminum Industry Study 147 672-44A Experimental Support Unit for Work on Industrial Incentives and Comparative Advantage (INCA) 148 672-48 The Acquisition of Technological Capability 149 672-86 Productivity Change in Infant Industry (Phase I) ! 52 5. Transportation, Water, and Telecornmunications 670-26 Substitution of Labor and Equipment in Civil Construction 154 670-27 Highway Design Maintenance Standards Study (Phase II) 158 671-18 Pricing and Financing of Urban Public Services: Water Supply and Sewage Disposal 161 672-06 Design and Monitoring Tools for Water Supply and Sanitation Technology 163 672-07 The Determinants of Railway Traffic, Freight Transport, and the Choice of Transport Modes 164 672-53 Rural Mobility and Communications Study 165 6. Energy 671-86 Standards of Rural Electrification 168 672-15 Pricing of Indigenous Energy Resources 169 12 Abstracts, by Functional Category 672-54A Investment Planning in the Power Sector in Indonesia 171 672-63 Development and Applica~ion of a Minimum Standard Energy Demand Model for Developing Countries 172 672-70 The Welfare Implications of Eliminating Energy Subsidies in Indonesia 175 672-74 Adjustment in Oil-Importing Countries 176 672-83 Pricing and Taxing Transport Fuels in Developing Countries 178 7. Urbanization and Regional Development 670-70 Urban Public Finance and Administration 181 671-47 Strategic Planning to Accommodate Rapid Growth in Cities of Developing Countries ("The City Study") 183 672-13 National Spatial PoHcies: Brazil 188 672-37 Identifying the Urban Poor: A Case Study of Brazil 192 672-46 Housing Demand and Housing Finance in Developing Countries (Phase I) 194 672-58} An Evaluation of Industrial Location Policies 672-91 for Urban Deconcentration (Phase II) 195 672-59 Participant/Observer Evaluation of Urban Projects 197 672-64 National and State Analysis of Indian Urban Development 199 672-81 Development of a Model for Urban Land and Infrastructure Pricing, Costing, and Design 201 8. Population and Human Resources 8-A. Education 671-49 Education and Rural Development in Nepal and Thailand 203 671--54 Economics of Educational Radio 205 Abstracts, by Functional Category 13 671-55 International Study of the Retention of Literacy and N umeracy 208 671-60 Textbook Availability and Educational Quality 2il 671-78 Education and Other Determinants of Farm Household Response to External Stimuli 215 672-01 The Labor Market Consequences of Educational Expansion 216 672-09 Mass Media and Rural Development 218 672-45 Diversified Secondary Curriculum Study (DISCUS) 219 672-56 Conference on the Consequences of Educational Expansion in East Africa 221 8-B. Labor and Employment 671-06 Employment Models and Projections 222 671-30 Structure of Rural Employment, Income, and Labor Markets 223 671-48 Urban Labor Markets in Latin America 225 671-84 Wage and Employment Trends and Structures in Developing Countries 226 672-40 Structure of Employment and Sources of Income by Socioeconomic Groups and Regions in Peru 230 8-C. Population and Health 671-02 Population Growth and Rural Poverty 231 671-70 Case Studies of Determinants of Recent Fertility Decline in Sri Lanka and South India 233 671-73 Kenya: Health, Nutrition, Worker Productivity, and Child Development Studies 235 671-74 The Economics of Schistosomiasis Control 237 671-81 Determinants of Fertility in Egypt 239 672-03 Narangwal Population and Nutrition (Phase 11) 240 672-10 Health and Rural Development in Nepal 242 672-19 Poverty, Fertility, and Human Resources in Indonesia 243 14 Abstracts, by Functional Category 672-35A Policy Analysis of Fertility and Family Planning in Kenya 246 672-42 Determinants of Fertility in Egypt: An Analysis of the Second Round of the Egyptian Fertility Survey 248 672-60 The Determinants of Fertility in Rural Bangladesh 250 672-72 Demand for and WiHingness to Pay for Services in Rural Mali 251 Introduction This compilation of Abstracts provides a summary of work undertaken in the World Bank's central research program'. Re- search has always been an integral part of the Bank's economic work, and the growing diversification of the Bank's lending opera- tions has induced further expansion of research activities. To give wider dissemination to the results of its research, the Bank also publishes a newsletter, entitled World Bank Research News, three times a year. The newsletter supplements the Ab- stracts by reporting on completed projects, by describing projects that are in the pipeline.•1ot yet included here, and by listing new and forthcoming publications related to the Bank's research. Each issue of Research News includes an article that describes various aspects of the Bank's research program in some detail. The Bank has designed its research program in the light of four major objectives: • To support all aspects of the World Bank's operations, in- cluding the assessment of development progress in member countries. • To broaden understanding of the development process. • To improve the Bank's capacity to provide advice to member countries. • To assist in developing indigenous research capacity in mem- ber countries. To these ends, the World Bank has initiated research projects that develop the data base, construct analytical tools, and extend the Bank's understanding of rural and urban development, indus- try, trade, economic growth, and social conditions. While the 1 This does not include research related to specific projects that are funded by loans and credits to member governments and other, generally short-term, studies carried out by the Bank's staff. 15 16 Introduction immediate purpose of the research program is to support the Bank's own activities, most studies of importance to the operations of the World Bank are relevant to planning and operational agencies in developing countries, as well as to other development finance institutions. The design and implementation of research can be used to build and strengthen indigenous research capacity in developing countries. The Bank, therefore, stresses collaborative research with individuals and institutes in those countries. Finally, the World Bank's research program may serve to stimulate others to finance studies on topics of particular interest and to improve the coordination of such research. The Current Research Program The 129 projects now in the research program are briefly described in this booklet. The studies are grouped into eight functional categories and, within each category, appear in numeri- cal order by reference number. A new series, research applica- tions, was introduced last year. These essentially are applications of existing research or tried research methodologies to new areas or case studies. Applications are identified by the letter "A" f0 1 lowing the reference number of the project and appear in numerical order within each category. The first category, Development Policy and Planning, which is divided into two sulJsections-"Income Distribution" and "Plan- ning, Growth, and Country Economic Analysis"-represents the core of the Bank's effort to improve country economic analysis. The causes, processes, and consequences of aggregate economic development are analyzed with respect to intersectoral linkages and broad social objectives. Various sophisticated planning and modeling techniques, such as social accounting matrices and gen- eral equilibrium and programming models, provide the tools with which issues of structural adjustment facing the developing coun- tries in the 1980s are examined. "The Living Standards Measure- ment Study" is also to be found in this section. The second category, International Trade and Finance, includes studies that examine the institutional and structural factors under- lying changes in the direction of developing countries' trade, particularly in manufactured goods, and their policy implications. The third category, Agriculture and Rural Development, focuses on the design of rural development strategies, particularly on the Introduction 17 role of the small farmer and the problems of channeling funds and distribL.iting food to the rural poor. Some studies address planning and policy aspects of agricultural development, such as the design and operation of irrigation projects and the role of technical and financial services in the adoption of agricultural innovations. Others consider the consequences of risk for agricultural policy and the impact of rural development on employment. The fourth category, Industry, is concerned with the sources and patterns of industrial growth and with initiating policies and techniques for efficient industrial development. The use of pro- gramming techniques for sector analysis and project design is studied, as are issues of appropriate technology in the manufactur- ing sector. Also included in this category are studies on the managerial characteristics of public enterprises and the evolution of small-scale enterprises. The fifth category, Transportation, Water, and Telecommunica- tions, is concerned with the design, implementation, and manage- ment of transportation, water supply, and sanitation systems. Of special importance in this section are the studies on highway design and maintenance and on identifying appropriate techno- logies and pricing policies for urban services. Research on Energy, the sixth category, is expanding and includes the study of tools for analyzing investment policies in the energy sector and the pricing of indigenous energy resources. Studies in the seventh category, Urbanization and Regional Development, seek to improve understanding of the spatial and economic effects of policy intervention in cities of the developing world. One project develops a framework for the analysis of public finance in metropolitan areas, while another studies the character- istics of housing markets. The eighth category, Population and Human Resources, com- pri~es three main fields-"Education," "Labor and Employment," and "Population, Health, and Nutrition." Studies on education are evaluating the efficacy of alternative modes of transmission (for example, educational radio) and measuring the impact of educa- tion on productivity, employment, and incomes. The labor market studies focus on the informal urban sector and its relation to rural- urban migration. The studies on population consider the determi- nants of fertility and the economics of household size; those on health, the influence of augmented food intake and efficient disease control on workers' nutrition and productivity. 18 Introduction Projects completed before November 1982 are not included in the Abstracts. The few projects completed thereafter are listed in the current edition to mark their progre~ toward dissemination of results. Correspondence Requests for information on specific research projects should be addressed to the director of the World Bank department listed under "Responsibility" in each abstract. The completion dale is only an estimate. Reports stemming from the research projects are listed at the end of individual abstracts. Informal documents, such as divisional or departmental discussion papers or mimeographed and draft papers, are generally available through the responsible department or through the recently established Bank Research Documentation Center (BRDC) in the Office of the Vice President, Economics and Research. BRDC was set up to aid in the retrieval and dissemination of output from the Bank's research program. Inquir- ies should be addressed to BRDC, The World Bank, Room 1-8-203, at the address in Washington, D.C. listed below. World Bank Staff Working Papers, World Bank Country Stud- ies, and other official publications that are published by the Bank are listed in The World Bank Catalog of Publications, which provides detailed ordering instructions and a price list. The catalog may be nbtained by writing to: The World Bank Publications Distribution Unit 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. The World Bank European Office 66, avenue d'Iena 75116 Paris, France 1 Development Policy and Planning 1-A. Income Distribution The Living Standards Measurement Study Ref. No. 620-47 The aim of the Living Standards Measurement Study (LSMS) is to identify the ways in which governments can best monitor progress in raising living standards of various socioeconomic groups and, as far as possible, assess how these groups have been affected or might be affected by public policies. The study in- cludes periodic national household surveys, complemented by data gathered from communities, as the raw material for such analysis. The LSMS is, therefore, concerned with (1) the data that are needed, (2) the means of collecting them, and (3) their analytical uses. Although the project should ultimately lead to better inter- national comparisons of progress in development and improved evaluation of projects, priority is being given to the needs of national statistical and planning offices to monitor and analyze changes over time within individual countries. So far, the work has aimed primarily at identifying the data that are conceptually required and preparing a systematic discussion and illustration of their analytical uses. The general conclusions are that the identification of incomes by source and patterns of household expenditure must be central elements of a living stan- dards survey, and that these data need to be complemented by data on human development and demographic change. From the point of view of accuracy in measuring aggregates, income and expenditure estimates need to be built up from details, such as incomes by type and source, and expenditures by type of good or service acquired. Moreover, closer integration of the two sides of household accounts within the survey instruments used potentially adds to the survey's accuracy. Since employment is the major 19 20 Development Policy and Planning source of income for most households, LSMS is giving particular attention to employment. What is typically regarded as a Labor Force Surve~· will be integral to the overall design. The uses that can be made of LSMS data will be illustrated initially by data from other surveys and will focus on five areas of policy: identification of poverty and inequality; expenditure analy- sis; ~he human development dimension of living standards; man- power, employment, and earnings analysis; and income distribu- tion and national accounts. Eventually, further analysis of these areas with data from about three trial Living Standards Surveys is planned. Preparatory work on instruments and design for such surveys has already begun and field work is expected to get under way in 1983. Responsibility: Development Research Department- Timothy King and Christiaan N. Grootaert direct the project, which in- volves the participation of a large number of Bank staff from o~her departments and several consultants. Completion date: June 1984. Reports Pyatt, F. Graham. "Some Conceptual Problems of Measuring Living Standards, or: How Do We Find Out Who is Benefiting from Development?" Paper presented at the meeting of the International Statistical Institute, Manila, Philippines, Decem- ber 1979. Living Standards Measurement Study (LSMS), Working Papers Nos. 1-19, available through the World Bank's Development Research Department: I. Chander, Ramesh; Grootaert, Christiaan N.; and Pyatt, F. Graham. "Living Standards Surveys in Developing coun- tries." October 1980. 2. Visaria, Pravin. "Poverty and Living Standards in Asia: An Overview of the Main Results and Lessons of Selected Household Surveys." October 1980. 3. Altimir, Oscar, and Sourrouille, Juan. "Measuring Levels of Living in Latin America: An Overview of Main Problems." Oe:tober 1980. 4. United Nations Statistical Office. "Towards More Effective Measurement of Levels of Living, and Review of Work of Income Distribution 21 the United Nations Statistical Office (UNSO) Related to Statistics of Levels of Living." October 1980. 5. Chander, Ramesh; de Andre, Paulo T. A.; and Scott, Christopher. "Conducting Surveys in Developing Coun- tries: Practical Problems and Experience in Brazil, Malay- sia, and the Philippines." October 1980. 6. Booker, William; Savane, Landing; and Singh, Parmeet. "Household Survey Experience in Africa." October 1980. 7. Deaton, Angus. "Measurement of Welfare: Theory and Practical Guidelines." October 1980. 8. Mehran, Farhad. "Employment Data for the Measurement of Living Standards." October 1980. 9. Wahab, Mohammed Abdul. "Income and Expenditure Sur- veys in Developing Countries: Sample Design and Execu- tion." October 1980. I 0. Crootaert, Christiaan N., and Saunders, Christopher. <(Re- flections on the LSMS Croup Meeting." October 1980. II. Deaton, Angus. <(Three essays on a Sri Lanka Household Survey." October 1981. I2. Musgrove, Philip. "The ECIEL Study of Household In- come and Consumption in Urban Latin America: An Ana- lytical History." February 1982. I3. Martort·ll, Reynaldo. "Nutrition and Health Status Indica- tors: Suggestions for Surveys of the Standard of Living in Developing Countries." February 1982. I4. Birdsall, Nancy. "Child Schooling and the Measurement of Living Standards." February 1982. 15. Ho, Teresa J. "Measuring Health As A Component of Liv:ng Standards." April 1982. 16. Sullivan, Jeremiah M.; Cochrane, Susan H.; and Kalsbeek, William D. "Procedures for Collecting and Analyzing Mor tality Data in LSMS." June 1982. 17. C rootaert, Christiaan N. "The Labor Market and Socia] Accounting: A Framework of Data Presentation." July I982. 18. Acharya, Meena. "Time Use Data and the Living Stan- dards Measurement Study." July 1982. I9. Crootaert, Christiaan N. "The Conceptual Basis of Mea- sures of Household Welfare and Their Implied Survey Data Requirements." October 1982. 22 Development Policy and Planning Evaluation of Latin American Data on Income Distribution Ref. No. 670-83 A major limitation of empirical work on income distribution and the relationship between inequality, proverty, and develop- ment is the poor quality of the information that is available. This study is part of a broad program of work aimed at improving the data base for the systematic study of distributional problems (see also "Evaluation of Asian Data on Income Distribution," Ref. No. 671-08, in this category). The objectives of this research project are to identify, for each country in Latin America, a recent data set suitable for the analysis of patterns of income distribution and to use these data to present a detailed picture of the various aspects of income distribution. Access was obtained to 22 surveys for II countries (Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Hon- duras, Panama, Peru, Uruguay, and Venezuela). Multiple tabula- tions of the data have been prepared, accompanied by statements of their basic characteristics. The overall degree of ineq~qlity of income will be determined as measured by Lorenz curves and various indices of inequality, such as the Cini coefficient and the Theil index. In addition, the socioeconomic characteristics of different income groups will be identified. An attempt will then be made to examine the validity of various hypotheses about causes of income inequality by examining correlates of inequality in selected surveys. The final report will also provide an assessment of the quality of the data that are available in Latin America, as well as an evaluation of the degree to which data on income distribution are comparable across countries. Responsibility: Development Research Deartment-Timothy King and F. Graham Pyatt, with the previous substantive con- tribution of Pravin Visaria. The project is being undertaken jointly by the World Bank's Development Research Department and the Economic Commission for Latin America (ECLA). The prinripal researcher is Oscar Altimir, Chief of the ECLA Statis- tics uivision. Completion date: The project is nearing completion,. with a final report expected in December 1982. Income Distribution 23 Reports Altimir, Oscar. "The Extent of Poverty in Latin America." World Bank Staff Working Paper No. 522. March 1982. Altimir, Oscar, and Sourrouille, Juan. "Measuring Levels of Living in Latin America: An Overview of Main Problems." Living Standards Measurement Study (LSMS) Working Paper No. 3. The World Bank: Development Research Department, Octo- ber 1980. Evaluation of Asian Data on Income Distribution Ref. No. 671-08 This study was designed to parallel the previous research project, "Evaluation of Latin American Data on Income Distribu- tion" (Ref. No. 670-83), and is part of a work program aimed at improving the data base in this field. The basic research objective was to undertake an analysis of patterns of income distribution for each of the economies of the region. On the basis of preliminary work, it was decided to concentrate the in-depth analysis of the patterns of income distribution and the nature of proverty on the data sets for India, Malaysia, Nepal, and Sri Lanka, and Taiwan, China. The study has provided profiles of the socioeconomic characteristics of different income groups that are broadly comparable. Particular attention has been paid to the nature of rural-urban differences in income distribution and the relationship between income and various characteristics of the labor force. The project has also provided an assessment of the quality and comparabillty of available data. Responsibility: Development Research Department-Timothy King and F. Graham Pyatt, with the previous substantive contri- bution of Pravin Visaria. The study was undertaken jointly with the Economic and Social Commission for Asia and the Pacific (ESCAP). A number of national statistical agencies have provided access to data and, in many cases, have undertaken preliminary data processing. Completion date: The project is nearing completion, with a final report expected by December 1982. 24 Development Policy and Planning Reports Visaria, Pravin. "Demographic Factors and the Distribution of Income: Some Issues." In Economics and Demographic Change in the 1980s, Proceedings of the Conference of the International Union for the Scientific Study of Population (heid at Helsinki), vol. I :281-320. Liege, Belgium: IUSSP, 1979. A slightly revised version is available as World Bank Reprint Series: Number 129. . "Poverty and Living Standards in Asia." Population and Development Review 6 (June 1980) . . "Poverty and Living Standards in Asia: An Overview of the Main Results and Lessons of Selected Household Surveys." Living Standards Measurement Study (LSMS) Working Paper No.2. The World Bank: Development Research Department, October 1980. Studies on Brazilian Distribution and Growth Ref. No. 672-21 Brazil is the world's most often cited example of rapid, but inequitable growth. While acknowledging rapid growth, there is little agreement on how the benefits of that growth have been distributed and, particularly, on whether the poor have gained much in absolute terms. Difficulties in the interpretation of data abound; and in the absence of a common interprete1tion, little progress has been made in understanding the economic, social, and demographic mechanisms that have generated the Brazilian combination of growth and inequality. Recognition of the important role of demographic factors, especially at the household level, in assessing the relationship between growth and inequality is increasing, yet much work remains to be done in analyzing the interrelationships. The recent release by the Brazilian Census Bureau of a one percent sample of the 1970 population census has made it possible to pursue several issues at the household level. The census tape contains data on about 910,000 individuals, cross-classified into 176,000 households and 117 identifiable geographical areas. This research project comprises three interrelated sets of studies, each designed to explore the links between demographic variables at the household level and income distribution. These studies are now nearing completion. Income Distribution 25 The first set of studies has been essentia1ly descriptive. It has focused on a hitherto neglected aspect (because published data were not available and special tabulations were costly) of the Brazilian income distribution issue: the relation of household size and composition (age of the head of the household, age structure and work status of members) to inequality, and household re- sponses, particularly in terms of labor supply, to the economic pressures that have been created by an allegedly unequal growth process. The studies have provided an allocation of labor-force members into households and described the extent to which the low wages of individual workers are compensated for by earnings of other family members. ln part, through the other two sets of studies, explained below, the first project has made it possible to link differences in income across households to other welfare indicators and has contributed to the definition of socioeconomic groups. Finally, it has estab- lished a base line for comparison with the 1980 census. The second set of studies has examined the important question of human capital formation at the household level, focusing on the schooling decision. One objective has been to clarify the relative importance of family characteristics, on the one hand, and the availability of schools, on the other hand, in determining schooling for children. The distribution of schooling among today's children has a significant influence on tomorrow's distribution of income. A key issue is the extent to which public interventions to increase access to schooling are made more or less effective by individual family resources and the capacity of poor families to use school systems. Children from poor families may not have access to school, either because schools are not available or because they work to supplement family incomes. In this way, poverty may be transmitted from one generation to the next, unless the link between poverty and schooling is modified by public policy. In addition, research on the benefit of schooling in terms of adult income has been geared to examining how differences in availabil- ity and quality of schools across regions of Brazil have affected adult income and to considering the efficiency and equity of public schooling investments between rural and urban areas and between expansion versus quality improvements. The third set of studies has examined infant and child mortality as aspects of distribution of income. Important indicators of house- hold welfare, mortality differentials also raise major questions