Coursework for Econ Development

      Coursework for Econ Development Name Institution Date       COURSEWORK FOR ECON DEVELOPMENT 1.  Introduction a) Skim the introductory section (“Summary and Key Messages”) of the 2004 World Bank poverty assessment report (available on iLearn).    What are 3 important policy recommendations it makes regarding poverty and inequality?  Write 2-3 sentences describing each recommendation you list.    Improving education levels  The returns to tertiary education have mostly fallen after 1997 in Mexico as the country embraced open market economies. Upgrading the skills of workers would improve their competitiveness in the job market. Improving wage and salary payments  There have been reduced wage differentials between the rural and urban areas in Mexico, and there is a need to improve workers' payments so that the poor can afford basic needs.  Job creation targeting the poor improves their earning and spending capacity and they are better placed to pay and purchase for what they need. Social protection  Social protection should be prioritized to reduce inequality, and even income fluctuations affect the well being of the poor.  There are those still employed in the informal sector, receiving low wages low social benefits yet they are most vulnerable to rising costs of living (World Bank, 2004).   2. Poverty   a) Calculate the mean per capita consumption in each of the two years and compute the annual growth rate (fill in the table). How did consumption change over the period?  Write 2-3 sentences describing and interpreting your results.   The mean per capita consumption was 991.2085 and 1642.771 in 1998 and 2010 respectively. There was a 5.1% increase over the 1998-2010 period [(1642.771-991.2085) / 991.2085] / (2010-(1998+1))   b) Calculate the P₀ and P₁ indicators for each year (fill in the table).  Calculate the annual rate of change in P₀ (fill in the table). How did poverty rates and the depth of poverty change over the period?  Write 3-4 sentences describing and interpreting your results.   The P0 headcount ratio changed from 71.2% to 42.4% in 1998 to 2010, which was a 40.5% decline, while the P1 depth of poverty decreased from 35.6% to 19.6% representing a 4.9% fall in the poverty measure. The ratio measures the incidence of poverty, which is the proportion of the poor population.  P0 then is the number of poor people divided by the total population, and the people are better off in 2010 than 1998 as the ratio has decreased.   c) Graph the poverty profiles for the two years on a single figure.  Use different colors for the two years, and define these in a legend. Include the poverty line (z) on the graph as well.   (Paste graph into your group results) By examining the poverty profiles visually, you can infer what happened to the P₂ “severity of poverty” index.  Explain in 3-4 sentences what happened to the P₂index and how ...