Growth, Poverty Reduction and Inequality in Ethiopia: The Role of Labor Markets (between 1994 and 2004)

"In poverty literature, poverty reduction in a growing economy is analyzed in association with inequality. Economic growth could be accompanied with growing inequality, or with no change in inequality (distribution neutral growth), or with declining inequality (pro-poor growth). Poverty reducing impact of growth with increasing inequality is low while that of distribution neutral growth and pro-poor growth is higher. This means growth does not necessarily lead to poverty reduction."