This study attempts to explain the evolution of poverty and income concentration in Chile and Mexico. It focuses on the impact that changes in the rates and pattern of economic growth have had on poverty. The author concludes that since the rise in labour productivity was not accompanied by an increase in total production, there was a sustained reduction of the GDP elasticity of employment, which resulted in poverty.
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(This ILO Employment Working Paper No-78, 2011 has been hosted with due permission from ILO.)