This paper contributes to explain the cross-country heterogeneity of the poverty response to changes in economic growth …' wages and, thus, poverty alleviation. Then it presents cross-country empirical evidence that analyzes first, the … differential poverty-reducing impact of sectoral growth at various levels of disaggregation, and the role of unskilled labor …

The authors examine the empirical evidence in support of the poverty trap view of underdevelopment. They calibrate … simple aggregate growth models in which poverty traps can arise due to either low saving or low technology at low levels of … development. They then use these models to assess the empirical relevance of poverty traps and their consequences for policy. The …