The oil price increase and the alleviation of poverty: Income distribution in Caracas,Venezuela, in 1966 and 1975

Two Caracas household budget surveys are used to compare household and individual income distributions. Real 1975 incomes are derived from income-specific price indexes. Minimum food budgets define destitution and poverty levels. During 1966–1975 mean real income rose substantially, especially among the rich. The fraction poor declined markedly, but mean income did not rise for those remaining poor. The poor's share of income growth came entirely from reduction in the number of poor, and exceeded their 1966 income share. The poverty gap expanded with population growth but shrank in per capita terms and relative to total income.