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An update on poverty and inequality in Albania : nine stylized facts (Inglês)

This note presents 9 stylized facts that emerge related to the evolution of poverty between 2008 and 2012 in Albania. Findings from this note, using the latest Living Standard Measurement Study (2012 LSMS), show that the sharp downward poverty trend observed in the first part of the 2000s halted with the global economic crisis (stylized fact 1). From a period of fast economic growth up to 2008, growth slowed down, labor markets weakened and remittances inflows declined sharply in Albania, resulting in a stagnant national poverty rate. Between 2008 and 2012, poverty increased in urban areas, narrowing poverty differences between urban and rural areas (stylized fact 2). Poverty increased in most regions particularly the Coastal region (stylized fact 3). Not surprisingly, poverty is higher among households with low-educated members and a larger number of members. In the period under study, poverty increased particularly among household with older workers and youth, and the secondary-educated (stylized fact 4). Although poverty at the national level remained largely unchanged, this masks significant movements in and out of poverty that point to vulnerability of the non-poor in Albania (stylized fact 5). In fact, the observed decline in inequality in the period 2008 to 2012 is driven by stronger consumption decline of those in the highest quintile (stylized fact 6). The analysis suggests that lower economic growth was the main driver of the poverty trend (stylized fact 7). In particular, weakened labor markets are behind poverty changes (stylized fact 8), mainly through job loss, while pensions and social assistance partly offset the labor market shock (stylized fact 9).


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    Dávalos, María E., Cancho, César, Ceriani,Lidia

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    Documento de Trabalho

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    South Eastern Europe and Balkans,

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    Europa e Ásia Central,

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    An update on poverty and inequality in Albania : nine stylized facts

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