Mr. Antonio David, Mr. Takuji Komatsuzaki, and Samuel Pienknagura
legislation are associated with statistically significant increases in both poverty and inequality indicators over the medium-term. These effects appear to be economically small. Large changes in the employment protection reformsindexlead to increases in poverty rates of about one percentage point over five years. Similarly, inequality increases by about 1 percent over the same period.
Figure 22. Effects of Structural Reforms on Poverty and Inequality
Shaded area is 90 percent confidence interval for Driscoll-Kraay standard errors.
The bottom charts in the